THE WHAT? Bath & Body Works has reported its sales for the first quarter of fiscal 2023. The former L Brands retailer saw sales drop 4 percent yoy, reporting a total of US$1,396 billion for the three months ended April 29, 2023.
THE DETAILS Earnings per diluted share stood at US$0.35, considerably down on the US$0.64 recorded for the same period last year. Net income was US$81 million versus Q12022’s US$155 million.
The company reiterated its forecast of flat net sales to mid-single digit decline for fiscal 2023 and expects full year 2023 earnings per diluted share to be between US$2.70 and US$3.10.
THE WHY? Gina Boswell, CEO of Bath & Body Works, commented, “We delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives. I want to thank our team for their continued dedication and efforts in delivering innovation and newness to our customers as well as leveraging the agility of our vertically integrated supply chain to meet demand and capture market opportunities. In addition, we maintained our intense focus on efficiency and navigated the ongoing challenging macroeconomic environment. Looking forward, we are moving quickly and implementing our plans to profitably grow sales and drive long-term value for our shareholders. I remain excited about the opportunities ahead, and I am confident that the future is bright for Bath & Body Works.”