Bath & Body Works Analysts Cut Their Forecasts After Q2 Earnings

Core Insights - Bath & Body Works, Inc. reported disappointing second-quarter sales results and provided FY24 adjusted EPS guidance below estimates [1] - The company anticipates a decline in net sales for FY24 and has revised its adjusted EPS forecast [1] - Analysts have adjusted their price targets for Bath & Body Works following the earnings announcement [1] Financial Performance - The second quarter adjusted earnings per share were 37 cents, slightly above the analyst consensus of 36 cents [1] - Quarterly sales amounted to $1.526 billion, a decrease of 2.1%, missing the expected $1.543 billion [1] - The company expects FY24 net sales to decline between 4% and 2%, revised from a previous forecast of a 2.5% decline to no change [1] Guidance and Forecasts - Adjusted EPS forecast for FY24 is now between $3.06 and $3.26, compared to the previous estimate of $3.26 [1] - Third-quarter net sales are expected to remain flat to increase by 2.5%, with EPS projected between 41 cents and 47 cents, below the estimate of 53 cents [1] Share Repurchase and Market Reaction - The full-year guidance includes an anticipated impact of $400 million for share repurchases, up from the prior expectation of $300 million [1] - Following the earnings announcement, Bath & Body Works shares fell 7% to close at $32.29 [1] Analyst Ratings and Price Targets - Baird analyst maintained an Outperform rating but lowered the price target from $54 to $45 [1] - B of A Securities maintained a Buy rating and also lowered the price target from $54 to $45 [1] - UBS maintained a Neutral rating and cut the price target from $52 to $38 [1] - Barclays maintained an Equal-Weight rating and lowered the price target from $32 to $31 [1] - Raymond James maintained an Outperform rating and reduced the price target from $51 to $42 [1]