Bath & Body Works Reports Third Quarter 2024 Results

Net Sales of $1.6 Billion, Increased 3%; Earnings Per Diluted Share of $0.49, Both Exceeding Guidance

Updates Fiscal Year 2024 Guidance

COLUMBUS, Ohio, Nov. 25, 2024 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) today reported third quarter 2024 results.

Gina Boswell, CEO of Bath & Body Works, commented, "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 added, "Innovation across our core products, adjacencies, and collaborations is resonating with both new and existing customers supported by the investments we have made in marketing and technology. We are capitalizing on our agile business model and predominantly U.S.-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 towards sustainable, long-term profitable growth.”

Third Quarter 2024 Results

The company reported net sales of $1,610 million for the quarter ended November 2, 2024, an increase of 3.0% compared to net sales of $1,562 million for the quarter ended October 28, 2023.

The company reported earnings per diluted share of $0.49 for the third quarter 2024, compared to $0.52 last year. Third quarter operating income was $218 million compared to $221 million last year, and net income was $106 million compared to $119 million last year.

Reported third quarter 2023 results included a $12 million pre-tax gain ($9 million net of tax of $3 million) associated with the early extinguishment of debt. Excluding this item, third quarter 2023 adjusted earnings per diluted share was $0.48 and adjusted net income was $110 million.

At the conclusion of this press release is a reconciliation of reported‐to‐adjusted results, including a description of the adjusted items.

2024 Guidance

The company expects the 13-week fourth quarter 2024 net sales to range between a decline of 6.5% to a decline of 4.5%, compared to $2,912 million for the 14-week fourth quarter 2023. 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. Fourth quarter earnings per diluted share is expected to be between $1.94 and $2.07, compared to $2.55 in the fourth quarter 2023, and adjusted earnings per diluted share of $2.06 in the fourth quarter 2023.

For fiscal 2024, the company has raised its full-year net sales and earnings guidance from the guidance provided in August. We now expect net sales to range between a decline of 2.5% to a decline of 1.7%, relative to $7,429 million in fiscal 2023. The 53rd week in fiscal 2023 represents a headwind of approximately 100 basis points to net sales change in fiscal 2024. Full-year 2024 earnings per diluted share is now expected to be between $3.46 and $3.59, compared to earnings per diluted share of $3.84 in 2023. Full-year 2024 adjusted earnings per diluted share is now expected to be between $3.15 and $3.28, compared to adjusted earnings per diluted share of $3.27 in fiscal 2023. The company's full-year guidance includes the anticipated impact of $400 million of cash deployed towards share repurchases.

Earnings Call and Additional Information

Bath & Body Works, Inc. will conduct its third quarter earnings call at 9:00 a.m. Eastern Standard Time on November 25. To listen, call 877-407-9219 (international dial‐in number: 201-689-8852). For an audio replay, call 877-660-6853 (international replay number: 201-612-7415); access code 13749737 or log onto www.BBWInc.com. A slide presentation has been posted on the company's Investor Relations website that summarizes certain information in the company's prepared remarks from the earnings call as well as some additional facts and figures regarding the company's operating performance and guidance.

ABOUT BATH & BODY WORKS

Home of America's Favorite Fragrances®, Bath & Body Works is a global leader in personal care and home fragrance, including top-selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Powered by agility and innovation, the company's predominantly U.S.-based supply chain enables it to deliver quality, on-trend luxuries at affordable prices. Bath & Body Works serves and delights customers however and wherever they want to shop, from welcoming, in-store experiences at more than 1,880 Company-operated Bath & Body Works locations in the U.S. and Canada, more than 500 international franchised locations and an online storefront at bathandbodyworks.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made by our company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as "estimate,” "project,” "plan,” "believe,” "expect,” "anticipate,” "intend,” "planned,” "potential,” "target,” "goal” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and, in the future, could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or otherwise made by our company or our management:

• general economic conditions, inflation, consumer confidence, consumer spending patterns and market disruptions including pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises or other major events, or the prospect of these events;
• the seasonality of our business;
• our ability to attract, develop and retain qualified associates and manage labor-related costs;
• difficulties arising from turnover in company leadership or other key positions;
• the dependence on store traffic and the availability of suitable store locations on appropriate terms;
• our continued growth in part through new store openings and existing store remodels and expansions;
• our ability to successfully operate and expand internationally and related risks;
• our independent franchise, license, wholesale and other distribution-related partners;
• our direct channel business;
• our ability to protect our reputation and our brand image;
• our ability to attract customers with marketing, advertising, promotional programs and our loyalty program;
• our ability to maintain, enforce and protect our trade names, trademarks and patents;
• the highly competitive nature of the retail industry and the segments in which we operate;
• consumer acceptance of our products and our ability to manage the life cycle of our brand, develop new merchandise and launch and expand new product lines successfully;
• our ability to source, distribute and sell goods and materials on a global basis, including risks related to:
  • political instability, wars and other armed conflicts, environmental hazards or natural disasters;
  • significant health hazards or pandemics, which could result in closed factories and/or stores, reduced workforces, scarcity of raw materials, and scrutiny or embargoing of goods produced in impacted areas;
  • duties, taxes and other charges;
  • legal and regulatory matters;
  • volatility in currency exchange rates;
  • local business practices and political issues;
  • delays or disruptions in shipping and transportation and related pricing impacts;
  • disruption due to labor disputes; or
  • changing expectations regarding product safety due to new legislation;
• our ability to successfully complete environmental, social and governance initiatives, and associated costs thereof;
• the geographic concentration of third-party manufacturing facilities and our distribution facilities in central Ohio;
• our reliance on a limited number of suppliers to support a substantial portion of our inventory purchasing needs;
• the ability of our vendors to deliver products in a timely manner, meet quality standards and comply with applicable laws and regulations;
• the spin-off of Victoria's Secret may not be tax-free for U.S. federal income tax purposes;
• fluctuations in foreign currency exchange rates;
• fluctuations in product input costs;
• fluctuations in energy costs;
• our ability to adequately protect our assets from loss and theft;
• claims arising from our self-insurance;
• our and our third-party service providers' ability to implement and maintain information technology systems and to protect associated data;
• our ability to maintain the security of customer, associate, third-party and company information;
• stock price volatility;
• our ability to pay dividends and make share repurchases under share repurchase authorizations;
• shareholder activism matters;
• our ability to maintain our credit ratings;
• our ability to service or refinance our debt and maintain compliance with our restrictive covenants;
• our ability to comply with laws, regulations and technology platform rules or other obligations related to data privacy and security;
• our ability to comply with regulatory requirements;
• legal and compliance matters; and
• tax, trade and other regulatory matters.

For further information, please contact:

Bath & Body Works, Inc.:

Luke Long

[email protected] 

Media Relations

Emmy Beach

[email protected]