Bath & Body Works has revised its guidance downward.
Bath & Body Works has lowered its second-quarter and full-year expectations, citing a “challenging operating and macroeconomic environment.”
The specialty retailer said it now expects second-quarter sales to be down 6% to 7% compared to last year versus its previous guidance which called for a low-single-digit percent decline. Second-quarter earnings per share are now expected to be $0.40 to $0.42, down from its previous guidance for $0.60 to $0.65.
“Our business continues to perform at levels significantly above pre-pandemic, although we are navigating a challenging operating and macroeconomic environment with inflationary pressure affecting our customers and our business,” said Sarah Nash, executive chair and interim chief executive, Bath & Body Works. (Andrew Meslow stepped down as company CEO in May for health reasons.) “Our team is executing well, and our agility and clean inventory position allow the company to effectively adapt to changing consumer demand and preferences.”
Bath & Body Works expects full-year sales to be down mid-to-high single digits compared to last year versus its previous guidance of a low single-digit percent increase. The company reported net sales of $7.882 billion for the year ended Jan. 29, 2022, up 22% from the previous year.
“We will continue to leverage our vertically integrated supply chain to mitigate risk and chase winners,” said Nash. “We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures.”
Bath & Body Works, along with Victoria’s Secret, was previously a part of L Brands. The two brands were spun off into two independent public businesses in August 2022.