BBWI - Bath & Body Works stock rallies on raised profit forecast

2023-05-18 06:34:17 ET

Bath & Body Works ( NYSE: BBWI ) shares rose sharply in premarket action on Thursday after the retailer raised its full-year earnings guidance.

For the first quarter, the Ohio-based company notched a beat on top and bottom lines , bolstered by resilient in-store traffic and rising international sales.

“We delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives,” CEO Gina Boswell said. “Looking forward, we are moving quickly and implementing our plans to profitably grow sales and drive long-term value for our shareholders.”

To that end, management reiterated its full-year sales forecast of flat net sales to a mid-single digit decline against a 0.82% decline projected by analysts. However, the company now anticipates EPS for the full year to range from $2.70 and $3.10, up from a prior $2.50 to $3. The analyst consensus stands at $2.97 for the full year.

Shares of Bath & Body Works rose 5.82% in premarket action after the announcement.

Looking to the second quarter, management foresees a net sales decline in the low-to-mid single digit range as compared to $1.618 billion in the second quarter of 2022. Earnings per share in the quarter are projected to range between $0.27 and $0.32, compared to a $0.32 analyst consensus .

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