THE WHAT? Bath & Body Works has reported its results for the first quarter of fiscal 2022. The beauty retailer saw sales dip 1 percent to US$1.450 billion, although excluding stimulus payments received in Q1 2021, net sales were up 2 percent.
THE DETAILS EPS hit US$0.64, compared to US$0.32 in the prior-year period. The company adjusted its 2022 outlook downwards, with second-quarter earnings now expected to stand at US$0.60 to 0.65 per share compared to US$0.77 in the prior-year period and earnings per share of US$3.80 to US$4.15 for the fiscal year, compared to the US$4.3 to US$4.7 previously forecast.
THE WHY? The company said that the updated 2022 outlook reflects its decision to accelerate investments in IT and its customer loyalty program.
Sarah Nash, Executive Chair and Interim Chief Executive Officer of Bath & Body Works, commented, “Our business is very strong, our execution is excellent, and our strategy of delivering affordable luxuries to our customers is more relevant than ever. We have built on the past two years of extraordinary growth with strong momentum as we entered fiscal 2022. We are pleased to have delivered better-than-expected sales and earnings results in the quarter.
“With our vertically integrated and approximately 85 percent domestic supply chain, we are taking advantage of the agility in our inventory decision making to leverage early customer reads and chase our best performers in season. We combine the best of newness and daily use. Our business is very fast, and we are able to quickly adjust to changing customer preferences. We saw positive store traffic and transaction trends as customers engaged more with us in person, took advantage of our buy online-pick up in store offering and responded positively to our products.
“Looking ahead in 2022, we are continuing to plan prudently and use our agility to chase winners. We are accelerating investments in the business to drive our long-term growth, while at the same time, our team continues to successfully navigate the inflationary environment. Long-term, we continue to see exceptional opportunities to capitalize on Bath & Body Works’ existing strengths and extend the brand’s global potential.”