Bath & Body Works Inc (NYSE:BBWI) shares plummeted more than 13% after it issued disappointing full year guidance.
The beauty, skincare and lifestyle company expects its net sales to decline up to 2.5% from $7.43 billion in fiscal 2023.
Analysts had forecast full year sales of $7.4 billion, marking a 0.4% decline over the previous financial year.
Earnings per share (EPS) are expected to be between $3.05 to $3.35, with the midpoint of this range below the $3.33 expected by Wall Street analysts.
The seller of scented candles and body care products also forecast second quarter results below expectations.
It expects sales to decline up to 2% compared to the consensus of a $1.2% decline to $1.54 billion and EPS between $0.31 and $0.36, below the $0.40 forecast by analysts.
Bath & Body Works’ weak guidance overshadowed a better-than-expected performance during the first quarter.
For the three-month period ended May 3, 2024, adjusted EPS were up 15% from the year-ago quarter at $0.38, topping expectations of $0.33.
Sales decreased by 0.9% year-over-year to $1.38 billion, narrowly ahead of estimates of $1.37 billion.
Shares of Bath & Body Works traded down 13.5% at about $44.80 late morning on Tuesday.