Personal care and home fragrance brand Bath & Body Works (BBWI, Financial) reported its surprising third-quarter performance with its results beating the Wall Street analysts' expectation. Net sales rose 3.1% compared to
last year to $1.61 billion exceeding consensus estimate of $1.58 billion. The company's GAAP earnings came in at $0.49 per share or 6.6% above expectation of earning $0.47 only per share.
The company then raised its full-year guidance with sales decline between 2.5% to 1.7% only from previous guidance of 4% to 2% decline in sales. Gina Boswell highlighted the firm's surprising results beating the consensus and therefore they increase their full year guidance in fully capture this outperformance.
“Innovation across our core products, adjacencies, and collaborations is resonating with both new and existing customers supported by the investments we have made in marketing and technology. We are capitalizing
on our agile business model and predominantly U.S.-based supply chain, and we believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar,” said Boswell.
The products of Bath and Body Works are generally considered nonessential items, not necessary for basic survival and well-being. Its products include items like scented candles, lotions, body spays and other
personal care products, people purchase the products for indulgence, self-care and enjoyment rather than out of necessity.
Barclays Consumer Spend Report (November 2024) and McKinsey Consumer Spending Report (Q3 2024) see the trend of nonessential spending, particularly on entertainment, has grown over the past four months. And many Americans are still planning to buy more nonessentials to feel a sense of indulgence while at the same time still being cautious with their overall spending during inflationary times. This trend may also leverage BBWI's sales.
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