Bath & Body Works increases sales but predicts fall in upcoming quarter

Bath & Body Works reports an increase in net sales in its third quarter 2024 results but predicts a downfall in the fourth quarter.

Gina Boswell, CEO of Bath & Body Works, attributes its net sales increase this quarter to innovation across its core products, adjacencies and collaborations. She says this resonates “with new and existing customers supported by the investments we have made in marketing and technology.” 

The body care company reported net sales of US$1.61 billion for the quarter ended November 2, 2024, an increase of 3.0% compared to net sales of US$1.56 billion for the October 28, 2023 quarter.

Bath & Body Works expects the 13-week fourth quarter 2024 net sales to range between a decline of 6.5% to 4.5%. “We expect fourth-quarter net sales will incur a headwind of approximately 500 basis points due to the shifted fiscal calendar, resulting from and including the extra week in 2023,” says the company. 

Earnings rise and fall

Earnings per diluted share fell to US$0.49 for the third quarter of 2024, compared to US$0.52 last year. Third-quarter operating income also dropped to US$218 million, compared to US$221 million last year, and net income was US$106 million, compared to US$119 million last year.

Reported third quarter 2023 results included a US$12 million pre-tax gain (US$9 million net of tax of US$3 million) associBath & Body Works offers an array of body and home care products.ated with the early extinguishment of debt. Excluding this item, third quarter 2023 adjusted earnings per diluted share was US$0.48, and adjusted net income was US$110 million.

“Our strong results exceeded the high end of our net sales and earnings per diluted share guidance. As a result, we are raising our full-year guidance to fully reflect this outperformance,” Boswell says.

“We are capitalizing on our agile business model and predominantly US-based supply chain, and we believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar. As we enter the critical holiday period, I am pleased with our strong execution and the momentum we are building as we drive toward sustainable, long-term profitable growth.”

For fiscal 2024, Bath & Body Works has raised its full-year net sales and earnings guidance from the previous version in August. “We now expect net sales to range between a decline of 2.5% to a decline of 1.7%,” says the company.

Full-year 2024 adjusted earnings per diluted share is now expected to be between US$3.15 and US$3.28, compared to adjusted earnings per diluted share of US$3.27 in fiscal 2023.