Bath & Body Works Q2 Profit Fall, Beats Estimates; Updates FY23 View: Stock Down In Pre-market

(RTTNews) - Bath & Body Works, Inc. (BBWI), a specialty retailer of home fragrance and body care, on Wednesday reported lower earnings for the second quarter, on lower revenues. However, earnings beat market estimates.

Further, the company issued third-quarter outlook, and updated fiscal 2023 earnings and revenue guidance.

Quarterly net earnings decreased to $99 million or $0.43 per share from $120 million or $0.52 per share last year. Excluding items, net income was $92 million or $0.40 per share.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenue fell 3.6 percent to $1.56 billion from $1.62 billion in the prior year quarter. The Street estimate for revenue is $1.57 billion.

Looking ahead to the next quarter, the company expects earnings per share to be between $0.30 and $0.40, compared to $0.40 earnings per share in the third quarter of 2022. The market consensus for earnings is $0.37 per share.

Revenue is expected to decline 2.5 percent to 4.0 percent compared to $1.604 billion in the third quarter of 2022. Analysts' estimate for revenue is $1.57 billion.

Looking forward to the full year, the company now expects adjusted earnings per share between $2.80 and $3.10, compared to previous guidance of $2.68 and $3.08. The Street estimate for earnings per share is $2.99.

Revenue is now expected to decline 1.5 percent to 3.5 percent compared to $7.560 billion in 2022. Previously, it had expected revenues to decline a mid-single digit compared to $7.560 billion in 2022. The Street estimate for revenue is $7.47 billion.

In pre-market activity, shares of Bath & Body Works are trading at $33.63, down 3.81% on the New York Stock Exchange.