Bath & Body Works Inc (NASDAQ:BBWI) shares eased back in early Thursday trade after the specialist retailer posted better-than-expected third-quarter earnings but revised its full-year sales guidance lower.
The Ohio-based company reported a 2.6% fall in sales to $1.56 billion for the three months ended October 28, 2023, in line with analysts expectations.
Adjusted earnings per share for the quarter rose 20% to $0.48, beating the $0.36 consensus estimate of analysts polled by Zacks Investment Research.
“Our performance in the quarter was marked by strong merchandise margin improvement and the ongoing benefits of our cost optimization initiatives,” CEO Gina Bosell commented in a statement.
“As we close out the year, our team remains focused on delivering a great Holiday assortment and omnichannel experience for customers while leveraging our agility to chase demand. Amidst the ongoing macroeconomic pressures affecting consumers, we continue to execute against our strategic initiatives to drive growth and create long-term value.”
The retailer has guided for a 2.5% to 4% decline in full-year net sales, worse than the 1.5% to 3.5% fall it previously forecast.
It now expects adjusted EPS for the year to be between $2.90 and $3.10 from $2.80 to $3.10 previously.
The company’s shares fell 2% to $32 shortly after the opening bell.
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