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Shares of Bath & Body Works (NYSE:BBWI) are down more than 10% in premarket trading after the company trimmed its Q2 forecast for EPS from continuing operations.
The company now expects EPS from continuing operations to be in the range of 40c to 42c, down from 60c to 65c, while analysts were looking for 60c per share. BBWI anticipates Q2 sales to be down 6-7% year-over-year, compared to the previous forecast when the company expected sales to be up in low-single-digits.
BBWI now expects full-year sales to be down mid-to-high-single digits, down from previous guidance of sales rising in the low single digits. FY operating income rate as a percentage of sales is expected to be in the mid-teens.
“Our business continues to perform at levels significantly above pre-pandemic, although we are navigating a challenging operating and macroeconomic environment with inflationary pressure affecting our customers and our business… We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures,” said Sarah Nash, Executive Chair and Interim Chief Executive Officer.
