Bath & Body Works shares fall as retailer cuts profit outlook due to inflation

Bath & Body Works shares fall as retailer cuts profit outlook due to inflation


Sale signs inside the Bath and Body Works store in Edmonton. On Thursday, January 6, 2022, in Edmonton, Alberta, Canada.

Artur Widak | Nurphoto | Getty Images

Bath & Body Works shares fell in after-hours trading Wednesday after the retailer cut its profit outlook for the year, in part due to expected increases in inflationary pressures.

The stock fell more than 5% after hours, following an 8.6% decline during the trading day, amid a broader market selloff.

The company said in prepared remarks that it has been facing higher costs of raw materials, transportation and wages — like many retailers. Bath & Body Works now expects to take a hit of between $225 million and $250 million from inflation this fiscal year, or about $75 million more than originally planned.

The comments come after big-box retailers Target and Walmart both reported this week that these kinds of expenses ate into their profits in the first quarter, thereby denting their guidance for the coming months.

Bath & Body Works, which sells lotions, candles and other bath soaps, is forecasting its fiscal 2022 earnings from continuing operations per diluted share to be between $3.80 and $4.15, compared with a prior range of $4.30 to $4.70.

Its second-quarter earnings per share are expected to be between 60 cents and 65 cents, compared with 77 cents a year earlier.

For the three-month period ended April 30, Bath & Body Works reported net income of $154.9 million, or 64 cents per share, compared with income of $276.6 million, or 97 cents per share, a year earlier.

That topped analysts’ estimates for 53 cents a share, according to a Refinitiv survey.

Sales fell slightly to $1.45 billion from $1.47 billion a year earlier. But revenue beat expectations for $1.43 billion.

Bath & Body Works said it will be investing this year in revamping its loyalty program and in testing a new line-up of products, including hair care. While those investments can help to drum up demand from customers, they can also pressure profits in the near term.

Bath & Body Works shares are down about 39% this year.

Find the full earnings press release here.



Source

American Eagle shares rise on retailer’s Travis Kelce partnership
Business

American Eagle shares rise on retailer’s Travis Kelce partnership

American Eagle launches AE x Tru Kolors by Travis Kelce. Courtesy: American Eagle Shares of American Eagle rose Wednesday morning after the apparel company announced a collaboration with football star Travis Kelce, just a day after he proposed to singer Taylor Swift. The stock was up roughly 5% in early trading. Kelce’s sportswear brand, Tru […]

Read More
Cracker Barrel shares rise after restaurant chain gets rid of controversial new logo
Business

Cracker Barrel shares rise after restaurant chain gets rid of controversial new logo

A Cracker Barrel sign featuring the old logo is seen outside of a restaurant on August 21, 2025 in Homestead, Florida. Joe Raedle | Getty Images Shares of Cracker Barrel Old Country Store rose 3% Wednesday after the restaurant chain said it would scrap its new logo and return to the original one, amid mounting […]

Read More
An indicator of commercial real estate transaction volume just improved for the first time this year
Business

An indicator of commercial real estate transaction volume just improved for the first time this year

Housing block in Warsaw, Poland Busà Photography | Moment | Getty Images A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public […]

Read More