Bath & Body Works Q3 Profit Rises; Updates FY Forecast

(RTTNews) - Bath & Body Works Inc. (BBWI) reported third quarter net income of $119 million or $0.52 per share up from $91 million or $0.40 per share last year.

The latest quarter results included a $9 million after-tax gain associated with the early extinguishment of debt, resulting from the open market repurchase and retirement of $174 million principal amount of the company's senior notes during the third quarter.

Excluding the gain on the early extinguishment of debt, net income for the latest-quarter was $110 million or $0.48 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.35 per share for the third quarter. Analysts' estimates typically exclude special items.

Quarterly net sales were $1.562 billion, a decrease of 2.6% from $1.604 billion last year. Analysts expected revenue of $1.56 billion for the quarter.

The company expects fourth quarter net sales to decline 1% to 5% compared to $2.889 billion in the fourth quarter of 2022. Fourth quarter earnings per share are expected to be between $1.70 and $1.90, compared to $1.86 earnings per share in the fourth quarter of 2022. Analysts expect the company to report earnings of $1.98 per share and revenues of $2.89 billion for the fourth quarter.

The company has updated its full-year forecast to reflect better-than-expected bottom line results in the third quarter, the impact of debt and share repurchases in the third quarter, and lower sales expectations for the fiscal year.

The company now expects full-year 2023 earnings per share to be between $2.99 and $3.19, compared to $3.40 in 2022. The company expects full-year 2023 adjusted earnings per share to be between $2.90 and $3.10. For fiscal 2023, the company expects net sales to decline 2.5% to 4% compared to $7.560 billion in 2022.

Analysts expect the company to report earnings of $3.07 per share and revenues of $7.40 billion for fiscal 2023.

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