Bath & Body Works Inc. BBWI, -2.12% shares dropped 8.7% in Wednesday premarket trading after the retailer issued a downward revision of its second-quarter and full-year guidance. Bath & Body Works, known for its scented lotions and candles, now expects second-quarter sales to be down 6% to 7% versus previous guidance for a low-single-digit percent decline year-over-year. Second-quarter earnings per share are now expected to be 40 cents to 42 cents versus previous guidance for 60 cents to 65 cents. The FactSet consensus is for sales of $1.705 billion, suggesting a sales result in line with last year, and EPS of 60 cents. For the year, the company expects sales to be down mid-to-high single digits versus previous guidance for a low-single-digit decline. The FactSet consensus is for sales of $7.947 billion, implying a 0.8% decline. The full-year 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,” said Chief Executive Sarah Nash in a statement. Bath & Body Works was previously a part of L Brands alongside Victoria’s Secret VSCO, +1.01%. Bath & Body Works stock has plunged nearly 57% for the year to date.
