By Mackenzie Tatananni
Bath & Body Works stock rose Monday after the company raised its guidance on the back of better-than-expected earnings.
The personal care and home fragrance retailer reported an adjusted profit of 49 cents a share, beating the FactSet consensus estimate of 47 cents, on sales of $1.61 billion, which topped Wall Street's expectations of $1.58 billion.
Bath & Body Works raised its fiscal-year net sales and earnings guidance, saying it now expects net sales to range between a decline of 2.5% to a decline of 1.7%, compared with prior guidance for a decline of 4% to 2%.
Fiscal-year earnings were estimated by the company at between $3.46 and $3.59 a share, while adjusted earnings should come in at between $3.15 and 3.28.
CEO Gina Boswell praised the company's "strong execution and momentum" towards "sustainable, long-term profitable growth."
"Innovation across our core products, adjacencies, and collaborations is resonating with both new and existing customers supported by the investments we have made in marketing and technology," Boswell said in a press release.
"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."
Bath & Body Works stock jumped 14% to $35 in premarket trading Monday, marking the largest daily percentage increase since November 2022, according to Dow Jones Market Data.
While quarterly earnings surpassed expectations, the company's stock has dropped 21% this year, putting it on pace for its worst year since 2022, when it fell 40%.
The retailer hit a stumbling block in September when its shares were removed from the S&P 500. Boswell snapped up the slumping stock the following month, purchasing 6,000 shares in the company for $177,850.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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November 25, 2024 07:51 ET (12:51 GMT)
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