- Bath & Body Works Inc BBWI reported a fourth-quarter FY22 sales decline of 5% year-on-year to $2.89 billion, beating the consensus of $2.80 billion.
- Revenue from Stores - U.S. and Canada decreased 5.1% Y/Y to $2.07 billion, and Direct - U.S. and Canada declined 6.3% to $715.5 million. International sales rose 29.9% to $94.7 million.
- Gross profit decreased 13.5% Y/Y to $1.25 billion. Operating margin was 22.6%, and operating income for the quarter fell 25.7% to $653 million.
- Adjusted EPS of $1.86 beat the analyst consensus of $1.62.
- The company held $1.2 billion in cash and equivalents as of Jan. 28, 2023.
- Also Read: Third Point's Daniel Loeb Plans To Nominate Director Candidates At Bath & Body Works
- Outlook: Bath & Body Works expects Q1 net sales to decline in low- to mid-single digits compared to $1.45 billion in 2022.
- The company expects Q1 EPS from continuing operations of $0.17 - $0.27 (consensus $0.44) compared to $0.64 a year ago.
- For FY23, the company forecasts flat net sales to a mid-single-digit decline compared to $7.56 billion in 2022.
- BBWI expects 2023 EPS from continuing operations to be $2.50 - $3.00 (consensus $3.64), compared to $3.40 in 2022.
- Cost Savings: Bath & Body Works said it is undertaking an enterprise-wide effort to reduce expenses and improve operating efficiency.
- The company is targeting $200 million of annual cost savings, with over half of those savings contemplated in its 2023 outlook, primarily impacting the second half of the year.
- Price Action: BBWI shares are trading higher by 1.53% at $42.45 on the last check Thursday.
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