Bath & Body Works, Inc. (NYSE: BBWI) has reported its second quarter 2024 results, with net sales amounting to $1.5 billion, in line with the company's guidance. Earnings per diluted share stood at $0.68, while adjusted earnings per diluted share exceeded expectations at $0.37. This represents an increase from the previous year's earnings per diluted share of $0.43.
The company's net sales for the quarter ended August 3, 2024, decreased by 2.1% compared to the same period in the prior year, dropping from $1,559 million to $1,526 million. Operating income for the second quarter of 2024 was $183 million, down from $188 million in the second quarter of 2023. However, net income saw a significant increase, rising from $99 million in the second quarter of 2023 to $152 million in the second quarter of 2024.
Adjusted earnings per diluted share for the second quarter of 2024 amounted to $0.37, compared to $0.40 in the second quarter of 2023, while net income was $83 million compared to $92 million in the same period last year.
Looking ahead, for fiscal 2024, Bath & Body Works now expects net sales to range between a decline of 4% to a decline of 2%, relative to $7,429 million of net sales in fiscal 2023. The company also updated its full-year 2024 adjusted earnings per diluted share to be between $3.06 and $3.26, compared to $3.27 in fiscal 2023. Furthermore, the company has increased its full-year expected share repurchases to $400 million from $300 million.
For the third quarter of 2024, the company anticipates net sales to range between flat and an increase of 2.5% compared to the third quarter of 2023. Earnings per diluted share for the third quarter is expected to be between $0.41 and $0.47, compared to $0.52 in the third quarter of 2023, and adjusted earnings per diluted share of $0.48 in the same period.
Bath & Body Works' CEO, Gina Boswell, expressed confidence in the company's strategy, emphasizing that they are executing the right initiatives to position the business for long-term, sustainable, and profitable growth while enhancing shareholder value. The company is navigating the dynamic retail environment by leveraging its agile business model to meet customer demand through its product assortment and is continuing to invest in key initiatives while returning cash to shareholders through dividends and planned share repurchases. Following these announcements, the company's shares moved -1.3%, and are now trading at a price of $34.72. For more information, read the company's full 8-K submission here.
