Bath & Body Works Inc BBWI shares are trading lower Wednesday after the company cut guidance below analyst estimates.
Bath & Body Works said it now expects second-quarter revenue to be down 6% to 7% year-over-year. The company previously guided for a low single digit percent increase compared to 2021.
Second-quarter earnings are expected to be between 40 and 41 cents per share, down from the previously expected range of 60 to 65 cents per share. Bath & Body Works' updated forecast is below analyst estimates for earnings of 62 cents per share, according to data from Benzinga Pro.
The company expects full-year revenue to be down mid to high single digits year-over-year.
"Our business continues to perform at levels significantly above pre-pandemic, although we are navigating a challenging operating and macroeconomic environment with inflationary pressure affecting our customers and our business," said Sarah Nash, executive chair and interim CEO of Bath & Body Works.
"We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures," Nash added.
Bath & Body Works is set to announce its second-quarter results on Aug. 17.
BBWI Price Action: Bath & Body Works has traded between $82 and $25.75 over a 52-week period.
The stock was down 8.57% at $27.54 at time of publication.
Photo: Mike Mozart from Flickr.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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