(AP) – Bath & Body Works fiscal third-quarter performance topped analysts’ estimates thanks to strong sales, and the retailer boosted its full-year outlook.
The owner of Victoria’s Secret, Bath & Body Works and other chain stores earned USD106 million, or 49 cents per share, for the period.
A year earlier the Columbus, Ohio-based company earned USD119 million, or 52 cents per share. The prior-year period’s results were helped by a USD12 million pretax gain related to the early payment of debt.
The performance beat the 46 cents per share that analysts surveyed by Zacks Investment Research predicted.
Revenue totaled USD1.61 billion, up 3 per cent from USD1.56 billion a year earlier. The results topped Wall Street’s forecast of USD1.58 billion.
“We are capitalising on our agile business model and predominantly US-based supply chain, and we believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar,” CEO Gina Boswell said in a statement. “As we enter the critical holiday period, I am pleased with our strong execution and the momentum we are building, as we drive towards sustainable, long-term profitable growth.”
Neil Saunders, managing director of GlobalData, was pleased that Bath & Body Works saw increased sales both in stores and online during the quarter.
“One of the areas where Bath & Body Works has excelled is in trying to reinvigorate its core product categories,” Saunders said. “There has been a significant amount of innovation around scents, product design, and in-store displays to capture consumer imaginations and drive volume. This includes selective collaborations with franchises like Stranger Things to create limited-time collections which drive both interest and urgency when it comes to consumer purchases.”
Going forward, Bath & Body Works now anticipates fiscal 2024 adjusted earnings in a range of USD3.15 to USD3.28 per share and revenue between a decline of 2.5 per cent to a decline of 1.7 per cent, relative to USD7.43 billion in fiscal 2023. The company previously forecast adjusted earnings between USD3.06 and USD3.26 per share and revenue to range between a decline of 4 per cent to a decline of 2 per cent.
Analysts polled by FactSet expect full-year earnings of USD3.20 per share.
Shares jumped more than 19 per cent before the market open on Monday.
