Bath & Body Works Inc (NYSE:BBWI) Beats Analysts’ Expectations

Bath & Body Works Inc (NYSE:BBWI) stock surges 20.04% (As on November 17, 11:29:16 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22 driven primarily by a better merchandise margin rate and favorability in SG&A expenses. The company’s Men’s business continued to significantly outpace the shop with the launch of Leather & Brandy and Coffee & Whiskey, which exceeded the expectations. Body Care outpaced the shop in the third quarter. Fine fragrance mists had a strong quarter that was bolstered by the new fragrance, Fall in Bloom, that met the customer mindset during this time of year. Home Fragrance performance was in line with the shop driven by strength in Wallflowers. Soaps performed well, outpacing the shop, as the company continues to expand the new formulation that is made without parabens, sulfates or dyes. The relaunch of Gel Soap has been performing well. The company has recently launched a test of MOXY products online and in 11 stores. This new line includes face and hair care products and dietary supplements designed to help customers reach their skin, hair and wellness goals from the inside out.

BBWI in the third quarter of FY 23 has reported the adjusted earnings per share of 40 cents, beating the analysts’ estimates for the adjusted earnings per share of 20 cents. The company had reported 5 percent fall in the adjusted revenue to $1.6 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $1.56 billion. Third quarter operating income was $201.8 million compared to $408.5 million last year, and net income from continuing operations was $91.0 million compared to $177.1 million last year.

Bath & Body Works, Inc. expects Q4 2023 EPS to be in the range of $1.45-$1.65, versus the consensus of $1.55. For fiscal 2022, the company is forecasting earnings from continuing operations per diluted share between $3.00 and $3.20, compared to its prior full year forecast of $2.70 to $3.00. Analysts surveyed by Capital IQ expect $2.89.

Bath & Body Works, Inc. announced the declaration of its regular quarterly dividend of $0.20 per share payable on Dec. 2, 2022 to shareholders of record at the close of business on Nov. 18, 2022.

On the other hand, the company will officially welcome global personal care and beauty industry veteran, Gina Boswell, as the company’s next Chief Executive Officer in December.

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