Bath & Body Works seems to be headed for a decent holiday shopping season, at least if its most recent earnings report is any indication. Best known for its extensive line of candles, soaps, and other fragrance and personal care products, Bath and Body Works saw revenue climb year-over-year to $1.61 billion.
That figure is up 3% over last year’s number of $1.56 billion, according to The Hill.
Bath & Body Works Revises Outlook Upward, but There’s Still Room for Concern
Bath & Body Works expects adjusted earnings per share (EPS) to be between $3.15 and $3.28, ticking upward from previous expectations pegged at $3.06 to $3.26. Further, sales guidance was also improved from an anticipated decline of 2% to 4% to a lesser decline of 1.7% to 2.5%, as Bloomberg reported.
And while Bloomberg indicated the stock had jumped by 22% early on Nov. 25 — the largest jump for the company’s stock since 2022 — the stock fell from this high to rest at a daily increase of 14.3% as of 12 p.m. ET.
Despite bearish concerns springing forth from a “cautious consumer environment and a less successful semi-annual sale,” as Investing.com detailed, Bath & Body Works CEO Gina Boswell was optimistic concerning the company’s immediate future.
“We are capitalizing on our agile business model and predominantly U.S.-based supply chain, and we believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar,” Boswell said in a statement. “As we enter the critical holiday period, I am pleased with our strong execution and the momentum we are building, as we drive towards sustainable, long-term profitable growth.”
Bath & Body Works Execs Optimistic on Earnings Call
During its Nov. 25 earnings call, as outlined by Investing.com, it was clear that company executives were mostly pleased with the brand’s performance over the past quarter (and year).
Several victories and opportunities cited by executives included:
- Brand partnership with prominent Netflix properties such as “Bridgerton,” “Emily in Paris,” and “Stranger Things.”
- First stores in London, England, and in Seoul, South Korea, both performing above expectations.
- Expanding men’s business, which was one of the company’s fastest-growing categories in Q2.
Despite a volatile economic climate playing host to cash-strapped consumers and a shorter holiday season — a challenge addressed by CFO Eva Barado, who indicated that Bath & Body Works intends to “utilize periods outside of between Black Friday and Christmas to drive our Q4 performance” — the brand seems poised for success.
This sentiment was echoed by Neil Saunders, RetailWire BrainTrust member and managing director at GlobalData Retail, who called the results “particularly pleasing,” being produced against “a backdrop of constrained discretionary spending by consumers and of heightened competition in the body care and home fragrance spaces,” as Bloomberg reported.
