Yesterday, Bath & Body Works released its financial report of Q2 in 2024. The company reported net sales of $1.53 billion for the quarter ending August 3, a slight 2.1 percent drop from the previous year, and just below analysts’ estimates of $1.54 billion. It revised its full-year financial outlook after missing Wall Street’s sales expectations for its second quarter.
Adjusted net income for the quarter was $83 million, a decrease from $92 million last year. Reflecting the economic uncertainty and consumers’ reduced spending, Bath & Body Works adjusted its full-year guidance. The company now expects net sales to decline between 2 and 4 percent, compared to its earlier forecast of a 2.5 percent decline to flat. Full-year 2024 adjusted earnings per diluted share are projected to be between $3.06 and $3.26, down from $3.27 in fiscal 2023.
CEO Gina Boswell acknowledged the challenging environment and noted the company’s cautious approach in adjusting its revenue and earnings expectations. Despite her dissatisfaction with the slow return to sales growth, she expressed confidence in the company’s strategy and ongoing progress.
President Julie Rosen highlighted that the semiannual sale did not meet expectations, particularly impacting the body care category. She pointed out that store presentation and marketing efforts initially failed to resonate with customers. However, there were positives, such as strong growth in the men’s body care category and increased sales of lip care products, especially among younger customers. The company is also expanding its laundry product line to all U.S. stores by September, supported by a national advertising campaign to boost awareness.
Bath & Body Works continues its international expansion, with recent store openings in South Korea and London. Boswell emphasized the potential for growth in international markets, noting double-digit retail sales growth in areas unaffected by conflict in the Middle East.
