Bath & Body Works (NYSE:BBWI) shares are plummeting today after the specialty retailer posted better-than-expected fourth-quarter results but a disappointing outlook. With a year-over-year increase of 0.8%, revenue of $2.91 billion exceeded estimates by $70 million. Similarly, EPS of $2.06 outpaced expectations by $0.19.
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The uptick in BBWI’s top line was primarily attributable to a strong holiday season, gains in its loyalty program, and an extra week during the quarter. However, its net sales declined by 1.7% to $7.43 billion for the full year.
For Fiscal Year 2024, BBWI expects net sales growth to be flat to -3%. Similarly, the anticipated EPS of $3 to $3.35 points to a decline compared to the $3.84 figure seen in 2023. Moreover, BBWI expects net sales for the first quarter to decline by 4.5% to 2%. EPS for the quarter is seen landing between $0.28 to $0.33. Nevertheless, BBWI has approved a new share repurchase program of up to $500 million.
Is BBWI a Good Stock to Buy?
Today’s price erosion comes after a mega 51% rally in the company’s share price over the past three months. Overall, the Street has a Moderate Buy consensus rating on Bath & Body Works alongside an average price target of $46.27. However, analysts’ views on the stock could see changes following today’s earnings report.
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