Bath & Body Works beat Wall Street forecasts on the top and bottom lines in the third quarter, but the crucial holiday season is not looking so strong.
The retailer reported net sales of $1.56 billion for the third quarter ended Oct. 28, a decrease of 2.6 percent compared to a year ago, but above Wall Street estimates for $1.55 billion.
Net income was $119 million, up from $91 million in 2022. Adjusted earnings per diluted share was 48 cents, again beauty analysts’ forecasts for 35 cents.
However, the company downgraded its full year sales forecast. It now expects net sales to decline 2.5 percent to 4 percent. Previously it had forecast a drop of between 1.5 percent and 3.5 percent.
The company expects fourth quarter net sales to decline 1 percent to 5 percent compared to $2.89 billion in the fourth quarter of 2022.
Gina Boswell, chief executive officer of Bath & Body Works, said, “As we close out the year, our team remains focused on delivering a great Holiday assortment and omnichannel experience for customers while leveraging our agility to chase demand. Amidst the ongoing macroeconomic pressures affecting consumers, we continue to execute against our strategic initiatives to drive growth and create long-term value.”