BBWI - Bath & Body Works beats Q2 earnings expectations trims sales forecast

Bath & Body Works ( NYSE: BBWI ) shares ticked higher on Thursday after second quarter earnings results rose above the analyst consensus.

The Ohio-based retailer beat on top and bottom lines for the second quarter, led by cost savings efforts and sales that came in well above pre-pandemic levels.

“Our results in the second quarter were better than our most recent expectations, reflecting improvement in sales toward the end of the quarter as customers responded to newness in our assortment as well as favorability in expenses,” Interim CEO Sarah Nash said. “The business continues to perform at levels significantly above pre-pandemic and our team is effectively navigating the challenging environment and inflationary pressure affecting our customers and our business.”

She added that fall shopping and investments in supply chain improvements are expected to benefit the company into the coming quarters. Shares rose 3.58% shortly after the market open on Thursday.

Still, the company issued a softer than anticipated earnings forecast for the third quarter and trimmed its full year guide.

For the third quarter, the company is forecasting earnings from continuing operations per diluted share between $0.10 and $0.20, below the $0.24 expected by analysts.

For fiscal 2022, the company is forecasting earnings from continuing operations per diluted share between $2.70 and $3.00. The company had previously forecast EPS to range from $3.80 to $4.15 in May, which was already trimmed from the previous guidance of between $4.30 and $4.70. The forecast is nonetheless in line with the Wall Street consensus of $2.83 .

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