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Bath & Body Works, Inc. (NYSE:BBWI) shares are down over 5% premarket Thursday as the company topped earnings expectations, but guidance disappointed investors.
The retailer posted fourth quarter earnings of $1.86 per share, $0.26 better than the analyst estimate of $1.60, while revenue for the quarter came in at $2.89 billion versus the consensus estimate of $2.8B.
The company’s net sales represented a decrease of 5% compared to the previous year as it navigated a “challenging macroeconomic environment.”
BBWI’s CEO Gina Boswell said its earnings in the quarter were driven by its customer base responding well to the holiday season, in part powered by its loyalty program, which now exceeds 33 million members.
However, Bath & Body Works shares have declined premarket based on its guidance miss, with the company seeing fiscal first quarter earnings of between $0.17 and $0.27 per share, well below the consensus of $0.44.
First quarter net sales are expected to decline low- to mid-single digits compared to $1.450B in 2022.
For the full year, the company expects earnings to be from $2.50 to $3 per share, missing the analyst consensus estimate of $3.64.
