Bath & Body Works (NYSE: BBWI) shares tumbled Wednesday morning after the company lowered its sales and earnings outlook amid more difficult macroeconomic conditions. The retailer’s stock fell almost 8% at USD27.70 during morning trading.
“Our data indicates that customers, particularly lower-income customers, have become more cost-conscious and are limiting purchases,” the company said in a statement.
The American retail store chain now expects second-quarter sales to fall anywhere from 6% to 7%, in comparison to the same period last year. Additionally, it anticipates full-year sales to be down mid – to high – single digits from 2021’s numbers. The company had previously forecasted that its second-quarter and full-year sales would rise by low single digits from the previous year.
Bath & Body Works Interim CEO, Sarah Nash, said, “Our business continues to perform at levels significantly above pre-pandemic, although we are navigating a challenging operating and macroeconomic environment with inflationary pressure affecting our customers and our business. Our team is executing well, and our agility and clean inventory position allow the company to effectively adapt to changing consumer demand and preferences. We will continue to leverage our vertically integrated supply chain to mitigate risk and chase winners. We are focused on driving improved merchandise margins and pursuing aggressive options to control costs and combat inflationary pressures.”
The company is set to report its second-quarter earnings on August 17.