Bath & Body Works Reports Third Quarter 2024 Results
Bath & Body Works (BBWI) reported strong Q3 2024 results with net sales of $1.61 billion, up 3% year-over-year, and earnings per diluted share of $0.49. Operating income was $218 million, while net income reached $106 million. The company has raised its full-year 2024 guidance, now expecting net sales to decline between 2.5% and 1.7% compared to fiscal 2023. For Q4 2024, the company projects net sales to decline 6.5% to 4.5%, with earnings per diluted share expected between $1.94 and $2.07.
Bath & Body Works (BBWI) ha riportato risultati solidi nel terzo trimestre del 2024, con vendite nette di 1,61 miliardi di dollari, in aumento del 3% rispetto all'anno precedente, e utili per azione diluiti di 0,49 dollari. L'utile operativo è stato di 218 milioni di dollari, mentre l'utile netto ha raggiunto i 106 milioni di dollari. L'azienda ha aggiornato le previsioni per l'intero anno 2024, aspettandosi ora che le vendite nette diminuiranno tra il 2,5% e l'1,7% rispetto all'esercizio fiscale 2023. Per il quarto trimestre del 2024, l'azienda prevede una diminuzione delle vendite nette tra il 6,5% e il 4,5%, con utili per azione diluiti attesi tra 1,94 e 2,07 dollari.
Bath & Body Works (BBWI) reportó resultados sólidos en el tercer trimestre de 2024, con ventas netas de 1,61 mil millones de dólares, un aumento del 3% interanual, y ganancias por acción diluida de 0,49 dólares. El ingreso operativo fue de 218 millones de dólares, mientras que el ingreso neto alcanzó los 106 millones de dólares. La compañía ha elevado su guía para todo el año 2024, ahora espera que las ventas netas disminuyan entre un 2,5% y un 1,7% en comparación con el año fiscal 2023. Para el cuarto trimestre de 2024, la compañía proyecta que las ventas netas disminuyan entre un 6,5% y un 4,5%, con ganancias por acción diluida esperadas entre 1,94 y 2,07 dólares.
Bath & Body Works (BBWI)는 2024년 3분기에 16억 1천만 달러의 순매출을 기록하였으며, 이는 전년 대비 3% 증가한 수치입니다. 희석 주당 이익은 0.49달러였습니다. 운영 소득은 2억 1천8백만 달러였고, 순 소득은 1억 6백만 달러에 이릅니다. 이 회사는 2024년 전체 연도에 대한 가이던스를 상향 조정하였으며, 2023 회계 연도 대비 순매출이 2.5%에서 1.7% 감소할 것으로 예상하고 있습니다. 2024년 4분기에는 순매출이 6.5%에서 4.5% 감소할 것으로 예상되며, 희석 주당 이익은 1.94달러에서 2.07달러 사이일 것으로 보입니다.
Bath & Body Works (BBWI) a annoncé des résultats solides pour le troisième trimestre 2024, avec des ventes nettes de 1,61 milliard de dollars, en hausse de 3% d'une année sur l'autre, et des bénéfices par action diluée de 0,49 dollar. Le résultat opérationnel s'est élevé à 218 millions de dollars, tandis que le résultat net a atteint 106 millions de dollars. L'entreprise a relevé ses prévisions pour l'année 2024, s'attendant désormais à une baisse des ventes nettes comprise entre 2,5% et 1,7% par rapport à l'exercice 2023. Pour le quatrième trimestre 2024, l'entreprise prévoit une baisse des ventes nettes de 6,5% à 4,5%, avec des bénéfices par action diluée anticipés entre 1,94 et 2,07 dollars.
Bath & Body Works (BBWI) hat im dritten Quartal 2024 starke Ergebnisse gemeldet, mit netto Verkäufen von 1,61 Milliarden Dollar, was einem Anstieg von 3% im Jahresvergleich entspricht, und Gewinnen pro verwässerter Aktie von 0,49 Dollar. Das Betriebsergebnis betrug 218 Millionen Dollar, während der Nettogewinn 106 Millionen Dollar erreichte. Das Unternehmen hat seine Prognose für das Gesamtjahr 2024 angehoben und erwartet nun einen Rückgang der Nettoverkäufe von 2,5% bis 1,7% im Vergleich zum Geschäftsjahr 2023. Für das vierte Quartal 2024 prognostiziert das Unternehmen einen Rückgang der Nettoverkäufe zwischen 6,5% und 4,5%, mit einem Gewinn pro verwässerter Aktie zwischen 1,94 und 2,07 Dollar.
- Net sales increased 3% to $1.61 billion in Q3 2024
- Q3 2024 earnings per share of $0.49 exceeded guidance
- Company raised full-year 2024 guidance
- Strong execution in core products and collaborations
- Q4 2024 sales expected to decline 4.5-6.5% year-over-year
- Full-year 2024 net sales projected to decline 1.7-2.5%
- Q3 2024 operating income decreased to $218M from $221M year-over-year
- Q3 2024 net income declined to $106M from $119M year-over-year
Insights
Bath & Body Works delivered a solid Q3 performance with
Key financial metrics show resilience:
- Operating income of
$218 million - Net income of
$106 million - Strong execution despite retail volatility
However, the Q4 guidance suggests headwinds, projecting a
The predominantly U.S.-based supply chain proves advantageous in the current retail environment, offering agility and better cost control. The company's focus on core product innovation and strategic adjacencies is driving customer engagement across both new and existing segments.
The holiday season outlook appears cautiously optimistic despite the compressed calendar. Management's confidence in raising full-year guidance suggests strong underlying business fundamentals and effective execution of growth initiatives. The emphasis on marketing and technology investments indicates a forward-looking approach to maintaining market leadership in personal care and home fragrance segments.
Net Sales of
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
The company reported earnings per diluted share of
Reported third quarter 2023 results included a
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
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
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.
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2023 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and our subsequent filings.
For further information, please contact:
Bath & Body Works, Inc.:
Luke Long
InvestorRelations@bbw.com
Media Relations
Emmy Beach
Communications@bbw.com
| BATH & BODY WORKS, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (In millions, except per share amounts) | |||||||||||||||
| Third Quarter | Year-to-Date | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net Sales | $ | 1,610 | $ | 1,562 | $ | 4,520 | $ | 4,517 | |||||||
| Costs of Goods Sold, Buying and Occupancy | (910 | ) | (880 | ) | (2,587 | ) | (2,618 | ) | |||||||
| Gross Profit | 700 | 682 | 1,933 | 1,899 | |||||||||||
| General, Administrative and Store Operating Expenses | (482 | ) | (461 | ) | (1,345 | ) | (1,310 | ) | |||||||
| Operating Income | 218 | 221 | 588 | 589 | |||||||||||
| Interest Expense | (77 | ) | (84 | ) | (236 | ) | (259 | ) | |||||||
| Other Income | 4 | 22 | 65 | 68 | |||||||||||
| Income Before Income Taxes | 145 | 159 | 417 | 398 | |||||||||||
| Provision for Income Taxes | 39 | 40 | 72 | 99 | |||||||||||
| Net Income | $ | 106 | $ | 119 | $ | 345 | $ | 299 | |||||||
| Net Income per Diluted Share | $ | 0.49 | $ | 0.52 | $ | 1.55 | $ | 1.31 | |||||||
| Weighted Average Diluted Shares Outstanding | 219 | 228 | 223 | 229 | |||||||||||
| BATH & BODY WORKS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In millions) | |||||||
| November 2, 2024 | October 28, 2023 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and Cash Equivalents | $ | 191 | $ | 412 | |||
| Accounts Receivable, Net | 200 | 197 | |||||
| Inventories | 1,178 | 1,205 | |||||
| Other | 151 | 145 | |||||
| Total Current Assets | 1,720 | 1,959 | |||||
| Property and Equipment, Net | 1,158 | 1,244 | |||||
| Operating Lease Assets | 1,029 | 1,067 | |||||
| Goodwill | 628 | 628 | |||||
| Trade Name | 165 | 165 | |||||
| Deferred Income Taxes | 143 | 35 | |||||
| Other Assets | 141 | 145 | |||||
| Total Assets | $ | 4,984 | $ | 5,243 | |||
| LIABILITIES AND EQUITY (DEFICIT) | |||||||
| Current Liabilities: | |||||||
| Accounts Payable | $ | 510 | $ | 627 | |||
| Accrued Expenses and Other | 547 | 590 | |||||
| Current Debt | 314 | — | |||||
| Current Operating Lease Liabilities | 188 | 192 | |||||
| Income Taxes | 16 | — | |||||
| Total Current Liabilities | 1,575 | 1,409 | |||||
| Deferred Income Taxes | 45 | 167 | |||||
| Long-term Debt | 3,883 | 4,497 | |||||
| Long-term Operating Lease Liabilities | 969 | 1,020 | |||||
| Other Long-term Liabilities | 260 | 274 | |||||
| Total Equity (Deficit) | (1,748 | ) | (2,124 | ) | |||
| Total Liabilities and Equity (Deficit) | $ | 4,984 | $ | 5,243 | |||
| BATH & BODY WORKS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions) | |||||||
| Year-to-Date | |||||||
| 2024 | 2023 | ||||||
| Operating Activities: | |||||||
| Net Income | $ | 345 | $ | 299 | |||
| Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: | |||||||
| Depreciation of Long-lived Assets | 211 | 199 | |||||
| Share-based Compensation Expense | 31 | 29 | |||||
| Gain on Sales of Easton Investments | (39 | ) | — | ||||
| Loss (Gain) on Extinguishment of Debt | 3 | (28 | ) | ||||
| Deferred Income Taxes | (103 | ) | — | ||||
| Changes in Assets and Liabilities: | |||||||
| Accounts Receivable | 24 | 29 | |||||
| Inventories | (470 | ) | (499 | ) | |||
| Accounts Payable, Accrued Expenses and Other | 65 | 117 | |||||
| Income Taxes Payable | (124 | ) | (114 | ) | |||
| Other Assets and Liabilities | (12 | ) | (4 | ) | |||
| Net Cash (Used for) Provided by Operating Activities | (69 | ) | 28 | ||||
| Investing Activities: | |||||||
| Capital Expenditures | (166 | ) | (250 | ) | |||
| Proceeds from Sales of Easton Investments, Net of Fees Paid | 40 | — | |||||
| Other Investing Activities | 12 | 11 | |||||
| Net Cash Used for Investing Activities | (114 | ) | (239 | ) | |||
| Financing Activities: | |||||||
| Payments for Long-term Debt | (202 | ) | (343 | ) | |||
| Repurchases of Common Stock | (349 | ) | (99 | ) | |||
| Dividends Paid | (134 | ) | (137 | ) | |||
| Tax Payments related to Share-based Awards | (16 | ) | (10 | ) | |||
| Other Financing Activities | (9 | ) | (20 | ) | |||
| Net Cash Used for Financing Activities | (710 | ) | (609 | ) | |||
| Net Decrease in Cash and Cash Equivalents | (893 | ) | (820 | ) | |||
| Cash and Cash Equivalents, Beginning of Year | 1,084 | 1,232 | |||||
| Cash and Cash Equivalents, End of Period | $ | 191 | $ | 412 | |||
| BATH & BODY WORKS, INC. | ||||||||||||||
| ADJUSTED FINANCIAL INFORMATION | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (In millions, except per share amounts) | ||||||||||||||
| Third Quarter | Year-to-Date | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Reconciliation of Reported Net Income to Adjusted Net Income | ||||||||||||||
| Reported Net Income | $ | 106 | $ | 119 | $ | 345 | $ | 299 | ||||||
| Gain on Sales of Easton Investments | — | — | (39 | ) | — | |||||||||
| Gain on Extinguishment of Debt | — | (12 | ) | — | (28 | ) | ||||||||
| Tax Effect of Adjustments included in Other Income | — | 3 | 14 | 7 | ||||||||||
| Tax Benefit from Valuation Allowance Release | — | — | (44 | ) | — | |||||||||
| Adjusted Net Income | $ | 106 | $ | 110 | $ | 276 | $ | 278 | ||||||
| Reconciliation of Reported Net Income Per Diluted Share to Adjusted Net Income Per Diluted Share | ||||||||||||||
| Reported Net Income Per Diluted Share | $ | 0.49 | $ | 0.52 | $ | 1.55 | $ | 1.31 | ||||||
| Gain on Sales of Easton Investments | — | — | (0.18 | ) | — | |||||||||
| Gain on Extinguishment of Debt | — | (0.05 | ) | — | (0.12 | ) | ||||||||
| Tax Effect of Adjustments included in Other Income | — | 0.01 | 0.06 | 0.03 | ||||||||||
| Tax Benefit from Valuation Allowance Release | — | — | (0.20 | ) | — | |||||||||
| Adjusted Net Income Per Diluted Share | $ | 0.49 | $ | 0.48 | $ | 1.24 | $ | 1.21 | ||||||
See Notes to Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures.
| BATH & BODY WORKS, INC. | |||||||
| ADJUSTED FORECASTED FINANCIAL INFORMATION | |||||||
| (Unaudited) | |||||||
| Full-Year | |||||||
| 2024 | |||||||
| Reconciliation of Forecasted Net Income Per Diluted Share to Adjusted Forecasted Net Income Per Diluted Share | |||||||
| Low | High | ||||||
| Forecasted Net Income Per Diluted Share | $ | 3.46 | $ | 3.59 | |||
| Gain on Sales of Easton Investments, Net of Tax | (0.11 | ) | (0.11 | ) | |||
| Tax Benefit from Valuation Allowance Release | (0.20 | ) | (0.20 | ) | |||
| Adjusted Forecasted Net Income Per Diluted Share | $ | 3.15 | $ | 3.28 | |||
See Notes to Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures.
BATH & BODY WORKS, INC.
NOTES TO RECONCILIATION OF GAAP FINANCIAL MEASURES
TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
The “Adjusted Financial Information” provided in the attached reflects the following non-GAAP financial measures:
Fiscal 2024
There were no adjustments to results in the third quarter of 2024.
In the second quarter of 2024, adjusted results excludes the following:
- A
$39 million aggregate pre-tax gain ($25 million net of tax of$14 million ), included in other income, related to the sales of certain Easton investments. - A
$44 million tax benefit related to the release of a valuation allowance on a deferred tax asset.
There were no adjustments to results in the first quarter of 2024.
Full-year 2024 Adjusted Forecasted Net Income per Diluted Share excludes the adjustments referenced above.
Fiscal 2023
In the third quarter of 2023, adjusted results exclude a:
$12 million pre-tax gain ($9 million net of tax of$3 million ), included in other income, associated with the early extinguishment of outstanding notes.
In the second quarter of 2023, adjusted results exclude a:
$9 million pre-tax gain ($7 million net of tax of$2 million ), included in other income, associated with the early extinguishment of outstanding notes.
In the first quarter of 2023, adjusted results exclude a:
$7 million pre-tax gain ($5 million net of tax of$2 million ), included in other income, associated with the early extinguishment of outstanding notes.
The adjusted financial information should not be construed as an alternative to the results determined in accordance with generally accepted accounting principles. Further, the company’s definitions of adjusted income information may differ from similarly titled measures used by other companies. Management believes that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. While it is not possible to predict future results, management believes the adjusted financial information is useful for the assessment of the operations of the company because the adjusted items are not indicative of the company’s ongoing operations due to their size and nature. Additionally, management uses adjusted financial information as key performance measures for the purpose of evaluating performance internally. The adjusted financial information should be read in conjunction with the company’s historical financial statements and notes thereto contained in the company’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K.
| BATH & BODY WORKS, INC. Third Quarter 2024 | |||||||||||||||||
| Total Sales (In millions): | |||||||||||||||||
| Third Quarter | Year-to-Date | ||||||||||||||||
| 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
| Stores - U.S. and Canada (a) | $ | 1,220 | $ | 1,168 | 4.4 | % | $ | 3,425 | $ | 3,345 | 2.4 | % | |||||
| Direct - U.S. and Canada | 321 | 317 | 1.5 | % | 879 | 926 | (5.0 | %) | |||||||||
| International (b) | 69 | 77 | (11.1 | %) | 216 | 246 | (12.5 | %) | |||||||||
| Total Bath & Body Works | $ | 1,610 | $ | 1,562 | 3.0 | % | $ | 4,520 | $ | 4,517 | — | % | |||||
(a) Results include fulfilled buy online-pick up in store orders.
(b) Results include royalties associated with franchised stores and wholesale sales.
| Total Company-operated Stores: | ||||||||
| Stores | Stores | |||||||
| 2/3/2024 | Opened | Closed | 11/2/2024 | |||||
| United States | 1,739 | 75 | (41 | ) | 1,773 | |||
| Canada | 111 | 1 | — | 112 | ||||
| Total Bath & Body Works | 1,850 | 76 | (41 | ) | 1,885 | |||
| Total Partner-operated Stores: | ||||||||
| Stores | Stores | |||||||
| 2/3/2024 | Opened | Closed | 11/2/2024 | |||||
| International | 454 | 40 | (15 | ) | 479 | |||
| International - Travel Retail | 31 | 1 | (1 | ) | 31 | |||
| Total International | 485 | 41 | (16 | ) | 510 | |||
FAQ
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