Bath & Body Works Cuts 2022 EPS Estimates, Shares Down 6%
<p><a href='https://financialmodelingprep.com/financial-summary/BBWI'>Bath & Body Works, Inc. (NYSE:BBWI) </a>shares closed more than 6% lower on Thursday following the company’s reported Q1 results. While both the EPS and revenue of $0.64/$1.45 billion came in better than the consensus estimates of $0.50/$1.38 billion, 2022 guidance was cut. The company now expects Q2 diluted EPS of $0.60-$0.65. For the full 2022-year, diluted EPS is expected to be in the range of $3.80-$4.15, down from the previous $4.30-$4.70.</p>
<p>Analysts at Deutsche Bank said they were surprised to see the announcement of incremental investments in an environment that includes inflationary pressure, a potential slowdown in consumer spending, and increasing promotional levels. </p>
<p>BBWI outlined incremental investments this year including an extra $25 million to establish separate IT capabilities, $50M million due to the acceleration of the loyalty program, and "additional SG&A costs related to our CEO transition, including severance and retention for key talent and other associated expenses." </p>
<p>The company also called out a $225-$250 million inflation impact for the year which compares with $150-$175 million included in the prior guidance.</p>

NYSE:BBWI