Bath & Body Works Q3 Profit, Sales Beat Consensus Estimates; Raises FY Outlook Above View; Stock Up

(RTTNews) - Bath & Body Works, Inc. (BBWI) Monday reported lower profit for the third quarter. However, sales increased 3 percent. Earnings as well as sales beat the Street expectations. The specialty retailer also raised its full-year outlook above consensus estimates. The company's shares were trading more than 10 percent up in pre-market.

Bath & Body Works posted net income of $106 million or $0.49 per share for the third quarter, down from $119 million or $0.52 per share a year ago. On average, 16 analysts were expecting earnings of $0.47 per share. Analysts' estimates typically exclude special items. Operating income decreased to $218 million from $221 million last year.

Sales for the quarter grew 3 percent to $1.610 billion from $1.562 billion in the previous year. The consensus estimate was for $1.58 billion.

For the full year, Bath & Body Works now expects net sales to range between a decline of 2.5 percent to a decline of 1.7 percent. This compares with the previous outlook of 4 percent decline to 2 percent decline.

Earnings per share is now expected between $3.46 and $3.59 and adjusted earnings per share of $3.15-$3.28. Previously, it was expecting EPS of $3.37-$3.57, and adjusted EPS of $3.06-$3.26.

Analysts expect the company to report earnings of $3.2 per share on sales decrease of 2.52 percent for the year.

The company expects fourth-quarter sales to range between a decline of 6.5 percent to a decline of 4.5 percent. EPS is expected between $1.94 and $2.07. The Street is expecting EPS of $1.97 and sales to decrease 5.79 percent.

BBWI stock had closed at $30.71, up 0.52 percent on Friday. It has traded in the range of $26.21 - $52.99 in the last 1 year.