Bath & Body Works (NYSE: BBWI), the specialty retailer rallied in pre-market trading at the time of publishing on Thursday after the company announced Q1 adjusted earnings of $0.33 per diluted share versus $0.64 in the same period last year and surpassing consensus estimates of $0.28 per share.
However, the retailer’s net sales declined by 4% year-over-year in the first quarter to $1.396 billion versus analysts’ expectations of $1.39 billion.
BBWI expects its FY23 sales to stay flat year-over-year or to fall by mid-single-digit and has projected adjusted earnings to be between $2.68 and $3.08 per diluted share versus its prior forecast of $2.50 to $3 per share. The adjusted earnings forecast “excludes the gain on the early extinguishment of debt associated with the open market repurchase and retirement of $84 million principal amount of the company’s senior notes during the first quarter.”
For the fiscal second quarter, BBWI anticipates net sales to fall low- to mid-single digits year-over-year while earnings are expected to range from $0.27 and $0.32 per diluted share.
Analysts are cautiously optimistic about BBWI stock with a Moderate Buy consensus rating based on eight Buys and Holds each.
