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Jan 31, 2024
Bath & Body Works Q4 2023 Earnings Report
Bath & Body Works reported a decrease in net sales for the fourth quarter of 2022, but exceeded earnings per share guidance.
Key Takeaways
Bath & Body Works reported a 5% decrease in net sales for the fourth quarter of 2022 compared to the prior year, totaling $2.889 billion. Despite a challenging macroeconomic environment, the company delivered better-than-expected earnings results, with diluted EPS of $1.86.
Net sales for Q4 2022 decreased by 5% to $2.889 billion compared to $3.027 billion in Q4 2021.
Diluted earnings per share from continuing operations for Q4 2022 were $1.86, compared to $2.27 in Q4 2021.
Operating income for Q4 2022 was $652.7 million, a decrease from $879.2 million in Q4 2021.
The company's loyalty program now exceeds 33 million members, contributing to a strong holiday season response.
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
For fiscal 2023, Bath & Body Works forecasts flat net sales to a mid-single digit decline compared to 2022, with full-year earnings per diluted share expected to be between $2.50 and $3.00. The company is also targeting $200 million in annual cost savings.
Positive Outlook
- Targeting $200 million of annual cost savings, with over half impacting the second half of 2023.
- Full-year 2023 outlook includes the impact of a 53rd week, estimated at 7 cents per diluted share.
- Enterprise-wide effort to reduce expenses and improve operating efficiency.
- Focus on expanding customer base and bringing exciting new products to market.
- Optimistic about future growth and ability to profitably grow the business.
Challenges Ahead
- First quarter net sales expected to decline low- to mid-single digits compared to 2022.
- First quarter earnings from continuing operations per diluted share expected to be between $0.17 and $0.27, a decrease from $0.64 in Q1 2022.
- Full-year 2023 net sales forecast from flat to a mid-single digit decline compared to 2022.
- Full-year 2023 earnings per diluted share expected to be between $2.50 and $3.00, a decrease from $3.40 in 2022.
- Ongoing macroeconomic uncertainty is taken into consideration for the forecast.
Revenue & Expenses
Visualization of income flow from segment revenue to net income