Bath & Body Works Shares Surge 15% on Strong Q3 Results and Raised Guidance

Bath & Body Works (NYSE:BBWI) saw its shares soar over 15% intra-day today after delivering third-quarter earnings that exceeded analyst expectations and raising its full-year guidance.

The company reported adjusted earnings per share of $0.49, outperforming the analyst estimate of $0.47. Revenue for the quarter reached $1.61 billion, surpassing the Street consensus forecast of $1.58 billion and marking a 3% year-over-year increase. This strong performance was driven by successful product innovation and strategic investments in marketing and technology.

Following the better-than-expected results, Bath & Body Works revised its full-year 2024 guidance. The company now anticipates a smaller decline in net sales, projecting a decrease of 2.5% to 1.7% compared to fiscal 2023, an improvement over its prior forecast. Full-year adjusted earnings per share are now expected to range from $3.15 to $3.28.

For the fourth quarter, the company forecasted a net sales decline of 6.5% to 4.5% year-over-year, reflecting a 500-basis-point headwind caused by a shifted fiscal calendar. Fourth-quarter earnings per share are projected between $1.94 and $2.07. The guidance also includes the expected impact of $400 million in share repurchases for the fiscal year.