Bath & Body Works Stock Reactions

Bath & Body Works Inc.'s stock, traded as BBWI, experienced an 8% decline early Thursday following the release of their fiscal fourth-quarter earnings report. The Columbus, Ohio-based soap and perfume retailer surpassed expectations for earnings in the quarter but provided guidance indicating a potential drop in earnings for 2024.

Strong Performance in Q4

In the fiscal fourth quarter, Bath & Body Works reported a net income of $579 million, translating to $2.55 per share. This marked an increase from the $434 million, or $1.89 per share, in the same period the previous year. The profit figure included a $112 million tax benefit, an $8 million pretax impairment charge, and a $6 million pretax gain on the early extinguishment of debt. Adjusted earnings per share came in at $2.06, surpassing the FactSet consensus of $1.88.

Optimistic Sales Performance

Sales for the quarter rose to $2.912 billion compared to $2.889 billion a year ago, exceeding the FactSet consensus of $2.840 billion. Bath & Body Works CEO Gina Boswell expressed satisfaction with the sales and earnings results, stating that they were above the company's initial expectations.

Future Outlook

Looking ahead to fiscal 2024, Bath & Body Works anticipates sales to range from a 3% decline to flat growth. The projected adjusted EPS is expected to be $3.27, slightly below the FactSet consensus of $3.36, which implies sales growth of around 8%. Despite these anticipations, the stock has seen an 18% increase over the past 12 months, compared to a 27.7% gain in the S&P 500.