Shares of Ohio-based specialty retailer Bath & Body Works, Inc. (NYSE: BBWI) slipped 3.4% in after-hours trading on Wednesday, even though the company reported excellent results for the fourth quarter of 2021.
Adjusted earnings rose 17% year-over-year to $2.30 per share, beating the Street’s estimate of $2.01 per share.
Net sales increased 11% year-over-year to $3.03 billion, surpassing expectations of $2.65 billion.
Along with the fourth-quarter results, Bath & Body also provided an outlook for the first quarter and full-year 2022.
It expects EPS to lie between $0.47 and $0.55 per share in the first quarter versus the consensus estimate of $0.49 per share.
For 2022, the company anticipates EPS in the range of $4.30 to $4.70 per share, which is above analysts’ expectations of $3.97 per share.
Additionally, Bath & Body announced the resignation of CEO Andrew Meslow, effective May 12. Meslow, who has stepped down due to health reasons, will also stop serving on the company’s Board.
Sarah E. Nash, the Chairperson of Bath & Body’s Board, will become the Interim CEO after Meslow leaves. Nash has also been appointed as Executive Chairperson with immediate effect.
Overall, the stock has a Strong Buy consensus rating based on 8 Buys and 2 Holds. The average Bath & Body Works price target of $83.89 implies 66.7% upside potential. Shares have gained 43.2% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into BBWI’s performance.
According to the tool, compared to the previous year, Bath & Body’s website traffic registered a 33.7% decline in global visits year-to-date.
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