Bath & Body Works Cuts Annual Sales Forecast, Shares Tumble Over 6%

Bath & Body Works (NYSE:BBWI) saw its shares drop over 6% intra-day today after the retailer lowered its annual sales forecast.

For the second quarter, the company posted earnings per share (EPS) of $0.37, slightly above the Street estimate of $0.36. However, revenue came in at $1.5 billion, falling short of the expected $1.55 billion.

Store sales in the U.S. and Canada totaled $1.14 billion, just shy of the $1.15 billion estimate, while direct sales reached $297 million, missing the projected $320 million. Operating income fell 2.7% year-over-year to $183 million but still beat the $173.9 million estimate.

The company revised its fiscal 2024 outlook, now anticipating adjusted annual profit between $3.06 and $3.26 per share, down slightly from its previous range of $3.05 to $3.35. Full-year net sales are expected to decline between 4% and 2%, worse than the prior forecast of a 2.5% drop to flat.

For the third quarter, Bath & Body Works expects EPS between $0.41 and $0.47, below analyst expectations of $0.53. The company also projects net sales growth to range from flat to a 2.5% increase, compared to the 1.5% growth forecasted by analysts.