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Here's Why Bath & Body Works (BBWI) Trims Sales & Earnings View
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A challenging operating environment and inflationary pressure are making things tough for Bath & Body Works, Inc. (BBWI - Free Report) . Despite undertaking concerted efforts to tide over the unwarranted situation, these factors compelled management to trim the second quarter and fiscal 2022 sales and earnings view.
Bath & Body Works now expects second-quarter sales to decline between 6% and 7% from the year-ago period. It now envisions full-year sales to be down in the range of mid to high single digit. The current projection is significantly down from what management had earlier forecast. The retailer of home fragrance, body care, and soaps/sanitizers had previously guided a low single-digit percentage increase in both the second quarter and full-year sales.
This Columbus, OH-based company now anticipates second-quarter earnings from continuing operations in the bracket of 40-42 cents a share, sharply down from its prior view of 60-65 cents. The current projection suggests a significant decline from earnings of 77 cents a share reported in the year-ago quarter. Bath & Body Works currently expects its full-year operating income rate as a percentage of sales to be in the mid-teens range.
Despite the headwinds, management highlighted that Bath & Body Works is performing above pre-pandemic levels. Sarah Nash, executive chair and interim CEO, said, “Our team is executing well, and our agility and clean inventory position allow the company to effectively adapt to changing consumer demand and preferences. We will continue to leverage our vertically integrated supply chain to mitigate risk and chase winners. We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures.”
Image Source: Zacks Investment Research
Stock Performance
Shares of Bath & Body Works have declined significantly in the past six months. In the said period, this Zacks Rank #5 (Strong Sell) stock has fallen 44.7% compared with the industry’s decline of 15%.
Bath & Body Works is slated to report its second-quarter earnings on Aug 17, 2022. Our proven model does not conclusively predict an earnings beat for Bath & Body Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bath & Body Works has a Zacks Rank #5 and an Earnings ESP of -10.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Designer Brands designs, manufactures and retails footwear and accessories. The stock currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Designer Brands’ current financial year revenues and EPS suggests growth of 6.9% and 16.5%, respectively, from the year-ago reported figure. DBI has a trailing four-quarter earnings surprise of 102.5%, on average.
G-III Apparel designs, sources and markets apparel and accessories under owned, licensed and private label brands. The stock currently carries a Zacks Rank #1.
The Zacks Consensus Estimate for G-III Apparel’s current financial year revenues and EPS suggests growth of 12.9% and 10.4%, respectively, from the year-ago reported figure. G-III Apparel has a trailing four-quarter earnings surprise of 97.5%, on average.
Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2. CPRI has an expected EPS growth rate of 11.3% for three-five years.
The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 5% and 9.8%, respectively, from the year-ago period. CPRI has a trailing four-quarter earnings surprise of 49.3%, on average.
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Here's Why Bath & Body Works (BBWI) Trims Sales & Earnings View
A challenging operating environment and inflationary pressure are making things tough for Bath & Body Works, Inc. (BBWI - Free Report) . Despite undertaking concerted efforts to tide over the unwarranted situation, these factors compelled management to trim the second quarter and fiscal 2022 sales and earnings view.
Bath & Body Works now expects second-quarter sales to decline between 6% and 7% from the year-ago period. It now envisions full-year sales to be down in the range of mid to high single digit. The current projection is significantly down from what management had earlier forecast. The retailer of home fragrance, body care, and soaps/sanitizers had previously guided a low single-digit percentage increase in both the second quarter and full-year sales.
This Columbus, OH-based company now anticipates second-quarter earnings from continuing operations in the bracket of 40-42 cents a share, sharply down from its prior view of 60-65 cents. The current projection suggests a significant decline from earnings of 77 cents a share reported in the year-ago quarter. Bath & Body Works currently expects its full-year operating income rate as a percentage of sales to be in the mid-teens range.
Despite the headwinds, management highlighted that Bath & Body Works is performing above pre-pandemic levels. Sarah Nash, executive chair and interim CEO, said, “Our team is executing well, and our agility and clean inventory position allow the company to effectively adapt to changing consumer demand and preferences. We will continue to leverage our vertically integrated supply chain to mitigate risk and chase winners. We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures.”
Image Source: Zacks Investment Research
Stock Performance
Shares of Bath & Body Works have declined significantly in the past six months. In the said period, this Zacks Rank #5 (Strong Sell) stock has fallen 44.7% compared with the industry’s decline of 15%.
Bath & Body Works is slated to report its second-quarter earnings on Aug 17, 2022. Our proven model does not conclusively predict an earnings beat for Bath & Body Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bath & Body Works has a Zacks Rank #5 and an Earnings ESP of -10.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks Looking Red Hot
Here are three more top-ranked stocks, namely, Designer Brands (DBI - Free Report) , G-III Apparel (GIII - Free Report) and Capri Holdings (CPRI - Free Report) .
Designer Brands designs, manufactures and retails footwear and accessories. The stock currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Designer Brands’ current financial year revenues and EPS suggests growth of 6.9% and 16.5%, respectively, from the year-ago reported figure. DBI has a trailing four-quarter earnings surprise of 102.5%, on average.
G-III Apparel designs, sources and markets apparel and accessories under owned, licensed and private label brands. The stock currently carries a Zacks Rank #1.
The Zacks Consensus Estimate for G-III Apparel’s current financial year revenues and EPS suggests growth of 12.9% and 10.4%, respectively, from the year-ago reported figure. G-III Apparel has a trailing four-quarter earnings surprise of 97.5%, on average.
Capri Holdings, a global fashion luxury group, carries a Zacks Rank #2. CPRI has an expected EPS growth rate of 11.3% for three-five years.
The Zacks Consensus Estimate for Capri Holdings’ current financial year sales and EPS suggests growth of 5% and 9.8%, respectively, from the year-ago period. CPRI has a trailing four-quarter earnings surprise of 49.3%, on average.