By Denny Jacob

Bath & Body Works posted higher-than-expected sales in its latest quarter and adjusted its outlook for the year, signaling expectations for notable contributions from the critical holiday period.

The retailer of fragrances and other home goods logged net income of $106 million, or 49 cents a share, for the third quarter, down from $119 million, or 52 cents a share, a year earlier.

Adjusted earnings also came in at 49 cents a share, above analysts' estimates of 47 cents a share.

Sales edged up to $1.61 billion from $1.56 billion. Analysts polled by FactSet expected $1.58 billion.

"We believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar," said Chief Executive Gina Boswell.

For the fourth quarter, Bath & Body Works forecast sales to decline between 4.5% to 6.5% from a year earlier. It said it expects sales in the quarter to incur a headwind of about 500 basis points due to the shift fiscal calendar. The company also expects adjusted earnings per-share of $2.06 in the quarter.

Analysts polled by FactSet expected sales of about $2.74 billion and $1.97 a share in adjusted earnings for the fourth quarter. The sales estimate would equate to a 5.8% decline from the previous year.

For 2024, Bath & Body Works now expects sales to decline between 1.7% and 2.5% as well as adjusted earnings per-share between $3.15 and $3.28. It previously guided for sales to decline between 2% and 4% and for adjusted earnings per-share to range between $3.06 and $3.26.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

November 25, 2024 07:19 ET (12:19 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.