- Bath & Body Works Inc BBWI reported a Q1 FY23 net sales decline of 4% Y/Y to $1.396 billion, marginally missing the consensus of $1.40 billion.
- Revenue from Stores - U.S. and Canada decreased 2% Y/Y to $1.03 billion, and Direct - U.S. and Canada declined 12% Y/Y to $280 million. International sales rose 13% Y/Y to $82 million.
- Gross profit declined to $596 million from $669 million a year ago. Operating income for the quarter fell to $181 million from $280 million prior year.
- Adjusted EPS of $0.33 beat the analyst consensus of $0.26.
- The company held $1.05 billion in cash and cash equivalents as of Apr 29, 2023.
- BBWI's regular quarterly dividend of $0.20 per share is payable on June 16, 2023, to shareholders of record at the close of business on June 2, 2023.
- Outlook: BBWI expects Q2 FY23 net sales to decline in low- to mid-single digits versus $1.62 billion in Q2 FY22.
- The company expects Q2 EPS of $0.27-$0.32 (consensus $0.32) compared to $0.52 a year ago.
- For FY23, the company reiterates its forecast of net sales to be flat to a mid-single-digit decline compared to $7.56 billion in 2022.
- BBWI expects adjusted EPS of $2.68-$3.08 (vs. consensus $2.89) in FY23.
- The company expects an impact of $0.07 on FY23 EPS from including the 53rd week in the fiscal year.
- "We delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives....In addition, we maintained our intense focus on efficiency and navigated the ongoing challenging macroeconomic environment," commented Gina Boswell, CEO.
- Price Action: BBWI shares are trading higher by 9.5% at $37.28 premarket on the last check Thursday.
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