Why Specialty Retailer Bath & Body Works' Stock Is Sliding Today
Portfolio Pulse from Shivani Kumaresan
Bath & Body Works Inc (NYSE:BBWI) reported a slight decline in Q3 FY23 sales but beat the analyst EPS estimate. Sales decreased by 2.7% Y/Y to $1.562 billion, with a marginal beat over the consensus estimate of $1.560 billion. Adjusted EPS was $0.48, surpassing the $0.35 estimate. The company announced a regular quarterly dividend of $0.20 per share. However, the Q4 outlook is weaker than expected, with projected sales decline and EPS below consensus, leading to a 5.03% drop in BBWI shares to $30.67.
November 16, 2023 | 4:03 pm
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NEGATIVE IMPACT
Bath & Body Works reported a marginal sales beat and a significant EPS beat for Q3 FY23, but provided a weaker Q4 outlook with expected sales decline and lower EPS guidance than consensus. The stock price fell by 5.03%.
Despite the positive earnings beat, the stock price of Bath & Body Works is likely to be negatively impacted in the short term due to the weaker Q4 sales outlook and EPS guidance below analyst consensus. The market's reaction to the news is already evident with a 5.03% decline in the stock price, indicating investor concern over the company's future performance.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100