Bath & Body Works reports Q2 adjusted EPS 37c, consensus 36c

Reports Q2 revenue $1.5B, consensus $1.54B. CEO Gina Boswell commented, “We delivered net sales in line with our guidance range while adjusted earnings per diluted share exceeded our expectations, as we improved gross margins and executed on our Fuel for Growth initiatives. As we look forward to the rest of the year, we are taking a prudent approach to our outlook and adjusting our full-year guidance given the choppier macroeconomic environment and first half sales trends…While customers continue to be cautious and value-seeking, their response to our newness and innovation has been positive…We are poised to meet their demand through our good, better, best assortment, which offers exceptionally crafted products and fragrances at price points for everyone. The strength of our high-margin business model and strong cash flow generation enables us to continue investing in our key initiatives, while at the same time returning cash to shareholders through dividends and planned share repurchases.”