Bath & Body Works ( NYSE: BBWI ) traded higher after sliding past Q3 estimates and bosoting its full-year profit view.
Sales were down 4.8% during the quarter to $1.6B, which was enough to top the consensus expectation by $40M. Operating income fell more than 50% compared to a year ago to $201.8M despite what the retailer said was aggressive action it is taking to control costs and improve overall efficiencies. Net income from continuing operations was $91.0M vs. $177.1M a year ago.
The retailer had a net increase of 32 stores since the beginning of the year to end of the quarter with 1,787 locations.
Looking ahead, Bath & Body Works expects Q4 EPS of $3.00 to $3.20 vs. $2.95 consensus and the prior outlook of $2.70 to $3.00. "Long-term, we are confident in the fundamentals and potential of our business, and we are excited for Bath & Body Works’ next growth chapter as we officially welcome global personal care and beauty industry veteran," noted CEO Gina Boswell.
Shares of BBWI are rose 15.23% in after-hours trading to $36.10 to erase a 7.64% during the regular session. BBWI is still down more than 45% for the year.
The Seeking Alpha Quant Rating on BBWI is at Hold with low marks for growth and momentum holding it back.
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Bath & Body Works soars after lifting profit guidance