Even with falling profits, Bath & Body Works stock looks like it might be a buy.Soaps and sundries stock Bath & Body Works (BBWI -12.61%) fell 13% through 12:30 p.m. ET Tuesday despite the company beating on both sales and earnings in its first-quarter 2024 earnings report this morning.Heading into earnings, analysts forecast Bath & Body Works would earn $0.33 per share on sales of just under $1.4 billion. In fact, the company earned $0.38 per share, and its sales hit $1.4 billion on the nose. Bath & Body W ...

The jury’s still out on the health of the US consumer as investors weigh winners and losers of retail earnings seasonOutlier earnings dates this week: Bath & Body Works (BBWI), Dollar Tree (DLTR), Hibbett Inc. (HIBB), Big Lots (BIG)This next big test of consumer strength will be Friday’s job reportIf there’s one takeaway from Q1 retail earnings that have been pouring in the last few weeks, it’s that the US consumer may not be as resilient as they were to inflationary pressures in 2023. Those offering valu ...

Pre-market trading is back in the red this morning. We have two economic prints out this morning — Job Openings and Labor Turnover Survey (JOLTS) and Factory Orders, both for April and due at 10am ET today — and key earnings reports, most of which are coming after today’s closing bell. Following a mixed market Monday, we’re looking at -114 points on the Dow, -0.29%, the Nasdaq -0.28%, the S&P 500 -0.35% and the small-cap Russell 2000 again the outlier somewhat: -0.78% at this hour.We had thought we may have ...

Financial Data and Key Metrics Changes - The company reported net sales of $1.4 billion for Q1 2024, a decrease of 0.9% from the prior year, but above the high end of guidance [8][30] - Earnings per diluted share were $0.38, up 15% from the prior year's adjusted EPS, exceeding guidance [8][30] - The gross profit rate increased to 43.8%, up 110 basis points year-over-year, driven by improved merchandise margin [33] Business Line Data and Key Metrics Changes - Body Care sales grew low-single digits, with highlights in fine fragrance mist, men's, travel, and lip categories [21] - Home Fragrance sales declined mid-single digits, with a decrease in candle sales but an increase in unit market share for air fresheners [23] - Soaps & Sanitizers category decreased low-single digits, with soaps increasing due to refills, while sanitizers declined [24] Market Data and Key Metrics Changes - International net sales were $58 million, a decline of 29% from the previous year, primarily due to the war in the Middle East affecting wholesale revenue [32] - Despite the decline, total international system-wide retail sales were roughly flat compared to the prior year, with mid-teens growth outside the affected areas [32] Company Strategy and Development Direction - The company aims for $10 billion in sales and operating margins of 20%, focusing on elevating the brand, engaging customers, and enhancing operational efficiency [13] - A new brand collaboration with Netflix for the "Bridgerton" series and the launch of the Everyday Luxuries collection are part of the strategy to drive growth [10][20] - The company plans to open at least 35 net new stores in international markets this year, indicating a commitment to global expansion [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a return to sales growth in the second half of the year, supported by strong execution and strategic initiatives [39] - The company is taking a prudent approach to guidance due to a dynamic consumer spending environment [8][37] - Management noted that customer spending is being carefully managed, impacting basket size and average unit retails [11] Other Important Information - The company plans to invest $300 million to $325 million in capital projects during the year, focusing on brick-and-mortar stores and technology [27] - Active loyalty members increased by more than 18% year-over-year to approximately 37 million, driving about 80% of US sales [17] Q&A Session Summary Question: How are you thinking about the benefits from marketing campaigns and new product categories? - Management noted that investments in a full funnel approach are driving brand awareness and customer engagement, with positive early results [41] Question: Can you discuss the impact of the Middle East situation on international sales? - Management indicated that while there is near-term pressure, the long-term international expansion plans remain intact, with expectations for improvement in Q2 [45][46] Question: What are the expectations for AUR in the second half of the year? - Management stated that AUR is expected to be flat, with selective pricing actions taken for certain product launches [60] Question: How is the competition affecting the business? - Management emphasized the importance of innovation and a vertically integrated model to stay ahead of competitors [73] Question: What are the key drivers of net sales outperformance in Q1? - Management highlighted the success of new product categories and strong customer engagement as key drivers [51]

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Bath & Body Works Inc (NYSE:BBWI) posted better-than-expected first-quarter earnings results before the open this morning. However, the retailer's disappointing current-quarter and full-year guidance are sending the shares tumbling. At last glance, BBWI was down 11.4% to trade at $45.88, headed for its worst day since January 2021. Falling from last session's two-year high of $52.98, BBWI is now trading at its lowest levels in a month. The 120-day moving average, which the stock hasn't breached on a closing ...

Bath & Body Works (BBWI) reported $1.38 billion in revenue for the quarter ended April 2024, representing a year-over-year decline of 0.9%. EPS of $0.38 for the same period compares to $0.33 a year ago.The reported revenue represents a surprise of +1.25% over the Zacks Consensus Estimate of $1.37 billion. With the consensus EPS estimate being $0.33, the EPS surprise was +15.15%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Key TakeawaysBath & Body Works shares tumbled ahead of markets opening Tuesday despite a first-quarter earnings report that came in above expectations.Sales fell from last year, while profits rose slightly and came in above analyst estimates.The company also narrowed its full-year outlook, and issued second-quarter guidance. Shares of retailer Bath & Body Works (BBWI) slid in premarket trading Tuesday despite a first-quarter earnings report that surpassed analyst expectations and the company's own guidance. ...

Q1 2024 Results & 2024 Guidance June 4, 2024 Forward-Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 Wecautionthatanyforward-lookingstatements(assuchtermisdefinedinthePrivateSecuritiesLitigationReformActof1995)containedinthispresentationormadebyourcompanyorourmanagementinvolverisksanduncertaintiesandaresubjecttochangebasedon variousfactors,manyofwhicharebeyondourcontrol.Accordingly,ourfutureperformanceandfinancialresultsmaydiffermateriallyfromthoseexpresse ...

Financial Performance - Net sales for Q1 2024 were $1.384 billion, a decrease of 0.9% compared to $1.396 billion in Q1 2023[3]. - Diluted earnings per share for Q1 2024 were $0.38, up 9% on a GAAP basis and 15% on an adjusted basis compared to $0.35 in Q1 2023[3][4]. - Operating income for Q1 2024 was $187 million, compared to $181 million in the same period last year[3]. - The company reported a net income of $87 million for Q1 2024, compared to $81 million in Q1 2023[3][4]. - Net income for Q1 2024 was $87 million, up from $81 million in Q1 2023, representing a 7.4% increase[19]. - Adjusted net income for Q1 2024 was $87 million, compared to $76 million in Q1 2023, reflecting a 14.5% increase[22]. - Adjusted earnings per diluted share for Q1 2024 were $0.38, up from $0.33 in Q1 2023[23]. Guidance and Forecast - The company has narrowed its full-year 2024 guidance, forecasting net sales to decline between 2.5% to flat relative to $7.429 billion in fiscal 2023[5]. - Full-year 2024 earnings per diluted share are expected to be between $3.05 and $3.35, compared to $3.84 in fiscal 2023[5]. - Second quarter 2024 net sales are expected to decline between 2% to flat compared to $1.559 billion in Q2 2023[6]. - Second quarter earnings per diluted share are expected to be between $0.31 and $0.36, compared to $0.43 in Q2 2023[6][7]. Sales Performance - Total sales for Bath & Body Works in Q1 2024 were $1,384 million, a slight decrease of 0.9% compared to $1,396 million in Q1 2023[26]. - U.S. and Canada store sales increased by 3.0% to $1,065 million, while direct sales decreased by 6.8% to $261 million[26]. - International sales fell by 29.3% to $58 million from $82 million in the previous year[26]. Store Operations - The company operated a total of 1,850 stores as of May 4, 2024, with 16 new stores opened and 11 closed since February 3, 2024[28]. Cash Flow and Financing - Net cash provided by operating activities was $76 million, significantly higher than $44 million in Q1 2023[19]. - Net cash used for financing activities totaled $259 million, compared to $135 million in the previous year[20]. - Cash and cash equivalents at the end of the period were $855 million, down from $1,046 million at the end of Q1 2023[20]. Other Factors - The company experienced a headwind of approximately 100 basis points to net sales growth in fiscal 2024 due to the 53rd week in fiscal 2023[5].