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Nov 02, 2024
Bath & Body Works Q3 2024 Earnings Report
Reported a net sales increase of 3% and earnings per diluted share exceeded guidance.
Key Takeaways
Bath & Body Works reported strong Q3 2024 results, exceeding net sales and earnings per diluted share guidance. Net sales increased by 3.0% to $1.61 billion, and earnings per diluted share were $0.49. The company is raising its full-year guidance to reflect this outperformance.
Net sales reached $1.61 billion, a 3.0% increase compared to the previous year.
Earnings per diluted share were reported at $0.49, compared to $0.52 last year.
Operating income amounted to $218 million, slightly lower than the $221 million reported last year.
The company is raising its full-year guidance to fully reflect this outperformance.
Bath & Body Works
Bath & Body Works
Bath & Body Works Revenue by Segment
Bath & Body Works Revenue by Geographic Location
Revenue by Segment
Stores – U.S. and Canada Revenue
CapyFin.comDirect – U.S. and Canada Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
U.S. and Canada Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company expects Q4 2024 net sales to decline between 6.5% and 4.5% compared to Q4 2023, with a 500 basis points headwind due to the shifted fiscal calendar. Fourth quarter earnings per diluted share is expected to be between $1.94 and $2.07.
Positive Outlook
- Full-year net sales guidance raised to a decline of 2.5% to 1.7% compared to fiscal 2023.
- Full-year earnings per diluted share now expected to be between $3.46 and $3.59.
- Full-year adjusted earnings per diluted share now expected to be between $3.15 and $3.28.
- Full-year guidance includes the anticipated impact of $400 million of cash deployed towards share repurchases.
- The company is well-positioned to navigate a volatile retail environment and shorter holiday calendar.
Challenges Ahead
- Fourth quarter net sales are expected to decline between 6.5% and 4.5%.
- Fourth quarter net sales will incur a headwind of approximately 500 basis points due to the shifted fiscal calendar.
- Fourth quarter earnings per diluted share is expected to be between $1.94 and $2.07, compared to $2.55 in the fourth quarter 2023.
- The 53rd week in fiscal 2023 represents a headwind of approximately 100 basis points to net sales change in fiscal 2024.
- Third quarter operating income was $218 million compared to $221 million last year, and net income was $106 million compared to $119 million last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income