Bath & Body Works Stock (NYSE: BBWI) Dips On Earnings – Outlook Fails To Deliver

Bath & Body Works stock (NYSE: BBWI) has taken a tumble in the premarket, down more than 8% as disappointing outlook guidance comes through from what was an otherwise solid beat on Q1 earnings expectations. The leading specialty retailer of personal care products, released its first-quarter financial results before the opening bell and the outlook has sent some of the earlier optimism the other way.

Here are the headlines

• EPS of $0.38 – Beats consensus of $0.33
• Revenue of $1.38bn – Beats consensus of $1.37bn
• Outlook disappoints – Q2 forecast for EPS between $0.31 and $0.36 shows notable decline from Q1. Net sales also expected to show decline c. 2%.

Analysts held specific expectations about Bath & Body Works' financial outcomes for the quarter. On average, there’s anticipation that the company will announce earnings of 33 cents per share. This figure presents a match when compared to the 33 cents per share reported in the same quarter of the previous year. However, slight variations in earnings per share are common and can be attributed to a wide range of factors including sales performance, expenses, and external market conditions.

In terms of revenue, Bath & Body Works is projected to post figures around $1.37 billion for the first quarter. This projection is critical as it reflects not only the company's sales performance but also resonates with investor confidence and the brand's market positioning.

On the shareholder front, Bath & Body Works has declared a regular quarterly dividend of 20 cents per share on May 17, signalling a return of profits to shareholders and indicating a level of confidence in the company's financial stability and future prospects.

It's noteworthy that on the morning of this announcement before earnings were released, BBWI's shares were trading up 2.30% in the premarket so this is a 10% swing into negative territory. Share prices fluctuate for a myriad of reasons, and minor changes are often not indicative of a company’s long-term valuations but there is clearly optimism heading in to the numbers.