Bath & Body Works Reports First Quarter 2024 Results

Core Insights - Bath & Body Works reported first quarter 2024 net sales of $1.384 billion, slightly down 0.9$1.396 billion in the same period last year, but exceeded guidance [1][3] - Diluted earnings per share (EPS) for the first quarter were $0.38, up 9$1,384 million, a decrease of 0.9% year-over-year, with a 200 basis point benefit from a shifted fiscal calendar and a 170 basis point negative impact from weaker international markets [3][22] - Operating income for the first quarter was $187 million, compared to$181 million in the previous year, while net income increased to $87 million from$81 million [3][12] - On an adjusted basis, EPS increased to $0.38 from$0.33 last year, and net income rose to $87 million from$76 million [4][17] Guidance and Expectations - For fiscal 2024, the company forecasts net sales to decline between 2.5% to flat compared to $7.429 billion in fiscal 2023, with full-year EPS expected to range between$3.05 and $3.35 [5][6] - The second quarter 2024 guidance anticipates net sales to decline between 2$1.559 billion in the second quarter of 2023, with EPS expected between $0.31 and$0.36 [6][5] Store Performance - As of May 4, 2024, Bath & Body Works operated 1,855 stores, with 1,744 in the U.S. and Canada and 486 international locations [23][24] - The company experienced a 3% increase in U.S. and Canada store sales, while direct sales declined by 6.8% and international sales dropped by 29.3% [22][22] Strategic Initiatives - The CEO highlighted the success of new product introductions and brand engagement efforts, which contributed to customer retention and loyalty [2] - The company is focusing on share repurchases, with an anticipated impact of approximately $300 million for the full year and$75 million for the second quarter [5][6]