Key Takeaways
- Bath & Body Works expects nett income to autumn betwixt 2% and 4% this year, worse than its antecedently offered guidance.
- CEO Gina Boswell called nan little scope "prudent" amid challenging user spending trends.
- The retailer besides missed expectations pinch its second-quarter nett sales.
Bath & Body Works (BBWI) shares sank aft nan institution slashed its 2024 guidance and missed expectations pinch its second-quarter sales.
The assemblage and fragrance merchandise retailer connected Wednesday said it expects nett income to autumn betwixt 2% and 4% from $7.43 cardinal successful 2023. A 4th earlier, nan institution offered a scope of down 2.5% to flat.
“As we look guardant to nan remainder of nan year, we are taking a prudent attack to our outlook and adjusting our full-year guidance fixed nan choppier macroeconomic situation and first half income trends,” CEO Gina Boswell said.
The company's shares were precocious down 6%, extending year-to-date losses successful excess of 20%. Bath & Body useful upped nan magnitude it expects to walk connected stock repurchases this twelvemonth by $100 million, to $400 million.
In nan 2nd quarter, Bath & Body Works saw nett income autumn 2.1% to $1.5 billion, short of nan Visible Alpha expert consensus. Its diluted earnings per share were 68 cents, up from 43 cents successful nan twelvemonth agone 4th and supra expectations.
“While customers proceed to beryllium cautious and value-seeking, their consequence to our newness and invention has been positive," said Boswell.