(Reuters) – Bath & Body Works on Monday raised its forecast for full-year adjusted profit and said it expects a smaller drop in annual sales, helped by steadfast demand for its personal care products and new offerings in its stores, sending the retailer’s shares up about 12% in premarket trading.
The Ohio-based company introduced new products including its new winter range of fragrances such as Winter Candy Apple and Frosted Coconut Snowball to keep up with competition and help tackle softer demand in the retail industry in the quarter.
An uptick in sales during the quarter, especially in it fragrance offerings, has resulted from the company’s efforts to push the brand as affordable luxury, particularly among younger customers.
“We believe we are well-positioned to navigate a volatile retail environment and shorter holiday calendar,” said CEO Gina Boswell in a statement.
Bigger rivals Estee Lauder and L’Oreal were pulled down by waning demand as consumers restrained spending on their premium beauty products and upmarket lipsticks and perfumes.
Bath & Body Works now expects net sales to shrink to a range of 1.7% to 2.5% for full-year 2024, compared with a prior forecast of a 2%-to-4% decline.
Bath & Body Works expects annual adjusted earnings per share between $3.15 and $3.28, compared with a prior forecast of between $3.06 and $3.26 per share.
On an adjusted basis, Bath & Body Works posted a profit of 49 cents per share for the quarter ended Oct. 28, above analysts’ average estimates of 47 cents per share, according to data compiled by LSEG.
The company’s third-quarter sales rose 3% to $1.61 billion, beating estimates of $1.58 billion.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber)
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