Bath & Body Works reported results for the quarter ended May 2 that exceeded analysts' forecasts, buoyed by ongoing consumer interest in the company's scented candles and personal care products. The Ohio-based retailer said its first-quarter net sales were $1.38 billion, topping LSEG consensus estimates of $1.36 billion, and that adjusted profit per share came in at $0.32 versus estimates of $0.29.
Company executives and statements highlighted a resilience in demand for the brand's core categories despite broader weakness in consumer spending. Shoppers have been gravitating toward lower-cost indulgences, including home fragrance and self-care items - a modest form of what the report described as a "lipstick effect" that has helped sustain sales across Bath & Body Works' product mix.
Since February, Bath & Body Works has begun selling its products through Amazon as part of an effort to reach affluent younger customers who seek what the company terms "affordable luxury." Management said the move to expand into the Amazon channel is intended to capture that demand and broaden the retailer's distribution footprint.
Alongside the quarterly results, the company reiterated its full-year outlook for net sales and adjusted profit, leaving annual guidance unchanged.
Bath & Body Works also announced a change in its financial leadership. Eva Boratto will step down as chief financial officer, and Tom Javitch will assume the role of interim CFO effective June 12. The company noted that Boratto has been appointed chief financial officer at drug distributor Cencora.
The market reaction to the quarterly surprise was swift: shares of the company rose 14% in premarket trading following the results and associated disclosures.
Summary
Bath & Body Works beat first-quarter sales and profit expectations, maintained its full-year guidance, expanded distribution through Amazon to reach younger affluent shoppers, and disclosed a CFO transition that will take effect in June.
- Quarterly sales: $1.38 billion versus $1.36 billion estimate (LSEG).
- Adjusted EPS: $0.32 versus $0.29 estimate for the quarter ended May 2.
- Corporate actions: CFO Eva Boratto to step down; Tom Javitch named interim CFO effective June 12. Boratto appointed CFO of Cencora.