Bath & Body Works Inc ( BBWI ) reported a first-quarter FY24 sales decline of 0.9% year-on-year to $1.38 billion, beating the analyst consensus estimate of $1.36 billion.

The change in year-over-year net sales benefited by approximately 200 basis points from the shifted fiscal calendar, as expected, offset by an impact of approximately 170 basis points resulting from weaker-than-expected results from certain international markets.

Gross profit increased 1.7% Y/Y to $606 million with a margin of 43.8%. The operating margin was 13.5%, and operating income for the quarter rose 3.3% to $187 million.

Adjusted EPS of $0.38 beat the analyst consensus estimate of $0.32.

Bath & Body Works ( BBWI ) held $855 million in cash and equivalents as of May 4, 2024. At the end of the first quarter, inventories increased 5.6% Y/Y to $814 million.

The operating cash flow for the quarter was $76 million. Bath & Body Works’ regular quarterly dividend of $0.20 per share is payable on June 21 to shareholders of record on June 7.

Outlook: Bath & Body Works ( BBWI ) narrowed FY24 EPS guidance to $3.05-$3.35 (prior $3.00 – $3.35)  versus the consensus of $3.31.

The company also narrowed its FY24 sales outlook to decline of 2.5% – 0% (prior decline of 3% – 0%).

The company sees second-quarter sales to decline 2% – flat and sees EPS of $0.31 – $0.36, versus the consensus estimate of $0.39.

Price Action: BBWI shares are trading lower by 5.56% at $48.93 at the last check Tuesday.