Bath & Body Works Q4 sales rise 11%

Bath & Body Works Inc. ended the year on a strong note.

The specialty retailer said that its net sales rose 11% to $3.027 billion for the quarter ended Jan. 29, up from $2.718 billion for the year-ago period. Analysts expected sales of $2.964 billion. (In August, Bath & Body Works, formerly known as L Brands, completed the separation of its Victoria’s Secret business and was launched as an independent standalone public company.)

Bath & Body Works expects to report earnings per share of approximately $2.25, compared to its initial guidance of $2.10 to $2.25 per share, and compared to $1.96 earnings per share in 2020. Excluding a charge related to a write-off for inventory destroyed in a tornado at a factory, earnings are expected to be $2.28. The company, which will report fourth quarter earnings on Feb. 23, said it ended the fiscal year with about $2 billion in cash.

“Driven by our focus on staying close to our customers and our commitment to operational excellence, Bath & Body Works achieved record sales and earnings during the fourth quarter,” stated CEO Andrew Maeslow. “Importantly, we are ending the fiscal year with approximately $2 billion in cash, and our strong balance sheet is allowing us meaningful opportunities to drive enhanced value for our shareholders.”

The retailer’s board has authorized a $1.5 billion share repurchase program, with plans to execute $1.0 billion this week. The new program follows a previous buyback program, also for $1.5 billion.

In addition, Bath & Body Works has authorized a 33% annual dividend hike to $0.80 per share. The first quarterly dividend of 20 cents per share is payable on March 4 to shareholders of record as of Feb. 18.

“Bath & Body Works maintains a disciplined approach to capital allocation and is committed to strategically deploying capital where we believe we can drive the greatest value for our shareholders,” said chair Sarah Nash. “The company’s strong balance sheet provides ample capacity to continue to return capital directly to our shareholders while also continuing to execute on the company’s strategic objectives.”

[Read More: Study: Bath & Body Works, Ace Hardware among retailers with best reputations]