Bath & Body Works Q2 sales drop 5 percent

Bath & Body Works, Inc. reported net sales of 1.618 billion dollars for the second quarter, a decrease of 5 percent compared to the second quarter ended July 31, 2021, but an increase of 45 percent compared to the second quarter of 2019.

The company is forecasting third quarter earnings per diluted share between 10 cents and 20 cents and for fiscal 2022, the company is forecasting earnings per diluted share between 2.70 dollars and 3 dollars.

Commenting on the second quarter trading, Sarah Nash, executive chair and interim chief executive officer, said: “Our results in the second quarter were better than our most recent expectations, reflecting improvement in sales toward the end of the quarter as customers responded to newness in our assortment as well as favorability in expenses.”

The company said in a statement that as part of efforts to better position the organisation for long-term growth, the company eliminated about 130 roles, the majority of which were leadership positions.

“While we are taking aggressive action to control costs and improve overall efficiencies, we remain focused on customer-facing investments, including the upcoming launch of our loyalty program throughout the U.S.,” Nash added.

For the second quarter, the company reported earnings per diluted share of 52 cents compared to 77 cents for the same quarter last year. Second quarter operating income was 241.8 million dollars compared to 384.2 million dollars last year, and net income was 120 million dollars compared to 215.3 million dollars last year.