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Bath & Body Works is forecasting a smaller decline in full-year sales and raising its profit estimate after better-than-expected third-quarter earnings. The news sent the retailer’s share price up 17 percent to $35.96.
The beauty company, which was spun off from L Brands, reported net sales of $1.61 billion for the quarter ended Nov. 2, up 3 percent from a year earlier. Wall Street had forecast $1.58 billion.
Net income was $106 million, compared to $119 million last year. Earnings per diluted share were 49 cents, down from 52 cents last year but above Wall Street estimates of 47 cents.
Gina Boswell, chief executive officer of Bath & Body Works, said: “Our strong results exceeded the high end of our net sales and earnings per diluted share guidance. As a result, we are raising our full-year guidance to fully reflect this outperformance.”
For fiscal 2024, the company now expects net sales to range between a decline of 2.5 percent to a decline of 1.7 percent, versus a previous estimate of a 2 percent to 4 percent drop.
Full-year 2024 adjusted earnings per diluted share is now expected to be between $3.15 and $3.28, compared to adjusted earnings per diluted share of $3.27 in fiscal 2023. It had previously forecast a range between $3.06 and $3.26 per share for 2024.
“This quarter our innovation across all categories resonated with new and loyal customers and was a key driver of our strong performance,” Boswell added in a statement provided to WWD. “As we enter the critical fourth-quarter holiday period, we have an exciting set of products at a range of price points. I’m confident that our leadership in home fragrance, compelling assortment of gift options, and operational excellence will help us end the year strong.”
At the same time, Bath & Body Works is continuing with international expansion.
Last month, the retailer opened its 500th international store in London. The store, located in Westfield Stratford City shopping mall, will be its seventh in the U.K., in conjunction with its partner Next, the British retailer. It’s the second store in the British capital; the first opened in April.
The brand now has retail locations across six continents and 40 countries, operating a franchise model internationally. That includes recently opening in South Korea.
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