Bath & Body Works ( NYSE: BBWI ) tumbled in premarket trading on Wednesday after the retailer cut its profit guidance.
BBWI now sees EPS from continuing operations of $0.40 to $0.42 vs. $0.60 to $0.65 prior and $0.60 consensus. BBWI also expects full year sales to be down mid to high single digits compared to last year vs. prior guidance of a low single digit percent increase. The full year operating income rate as a percentage of sales is seen coming in at the mid-teens range.
CEO Sarah Nash said BBWI is navigating a challenging operating and macroeconomic environment with inflationary pressure affecting both customers and the business.
"Our agility and clean inventory position allow the company to effectively adapt to changing consumer demand and preferences. We will continue to leverage our vertically integrated supply chain to mitigate risk and chase winners. We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures."
BBWI will report full Q2 results on August 17.
Shares of BBWI fell 10.36% premarket to $27.00 vs. the 52-week trading range of $25.81 to $82.00.
The Seeking Alpha Quant Rating on BBWI flipped to Sell from Hold on June 29.
For further details see:
Bath & Body Works slides after lowering guidance due to inflation pressures