Bath & Body Works Inc (NYSE:BBWI) stock rose 1.37% (As on August 18, 11:56:16 AM UTC-4, Source: Google Finance) after the company beaten the earnings estimates for the second quarter of FY 22. Second quarter operating income was $241.8 million compared to $384.2 million last year, and net income from continuing operations was $120.0 million compared to $215.3 million last year.
BBWI in the second quarter of FY 22 has reported the adjusted earnings per share of 52 cents, beating the analysts’ estimates for the adjusted earnings per share of 44 cents. The company had reported 5 percent fall in the adjusted revenue growth to $1.62 billion in the second quarter of FY 22, which is inline with the analysts’ estimates for revenue of $1.62 billion. However, there is an increase of 45% compared to the second quarter of 2019.
Bath & Body Works, Inc. expects Q3 2022 EPS to be in the range of $0.10-$0.20, versus the consensus of $0.31. Bath & Body Works, Inc. expects FY2022 EPS to be in the range of $2.70-$3.00, versus the consensus of $2.92.
Meanwhile, the company is pursuing a number of initiatives to improve financial performance and better position the organization for long-term growth. These initiatives include organizational changes, additional cost control actions and merchandise margin improvement opportunities. As part of efforts to better position the organization for long-term growth and create organizational efficiencies, the company recently simplified and realigned its operating structure. These actions included the elimination of about 130 roles, the majority of which were leadership positions. Together these actions are anticipated to result in estimated savings of approximately $30 million in the second half of 2022, prior to any impact from severance. The company expects to record severance and other charges of approximately $6 million in the third quarter of 2022 related to the organizational actions.
In addition, the company remains focused on customer-facing investments, including the upcoming launch of the loyalty program throughout the U.S. Looking to the back half of the year, the company believes that the planned Fall and Holiday assortments are well-positioned to resonate with the customers and the inventories are clean and forward facing. The product development and innovation capabilities, combined with the predominantly North American, vertically integrated supply chain, provide the company with the agility to chase into key winners during the season.