Bath & Body Works Q4 Profit Down, Yet Tops Estimates; Warns On Q1, FY23; Stock Down In Pre-market

Personal care and home fragrance company Bath & Body Works, Inc. (BBWI) reported Thursday that its fourth-quarter net income from continuing operations was $428.2 million, compared to $592.6 million last year.

Earnings from continuing operations per share was $1.86, lower than $2.27 a year ago. The prior year’s adjusted net income from continuing operations was $599.7 million or $2.30 per share.

On average, 19 analysts polled by Thomson Reuters expected earnings of $1.62 per share for the quarter. Analysts’ estimates typically exclude special items.

The company reported net sales of $2.89 billion, a decrease of 5 percent from last year’s $3.03 billion. Analysts expected sales of $2.8 billion.

Looking ahead, the company expects first-quarter earnings from continuing operations to be between $0.17 and $0.27 per share, down from prior year’s $0.64 per share. Analysts expect first-quarter earnings of $0.44 per share.

First-quarter net sales are projected to decline low- to mid-single digits compared to $1.450 billion in 2022.

Further, for fiscal 2023, the company is forecasting earnings from continuing operations per share to be between $2.50 and $3.00, compared to $3.40 in 2022. Analysts expect full-year earnings of $3.64 per share.

The company is expecting flat net sales to a mid-single digit decline compared to $7.560 billion in 2022.

In pre-market activity on the NYSE, the shares were losing around 4 percent to trade at $40.36.

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