Bath & Body Works, Inc. (NYSE:BBWI) shares rose more than 25% today after the company reported better-than-expected Q3 results. EPS came in at $0.40, better than the Street estimate of $0.20. Revenue was $1.6 billion, beating the Street estimate of $1.56 billion.

Results were driven by improving category mix and lower-than-expected transportation costs (resulting in a gross margin beat) along with SG&A favorability, which has been a recurring trend as the company cuts overhead costs and streamlines operations.

The company expects Q4 /2023 EPS to be in the range of $1.45-$1.65, compared to the Street estimate of $1.55.