Aug 28 (Reuters) - Bath & Body Works ( BBWI ) cut its

annual sales forecast on Wednesday, a sign of weaker demand for

its pricey products such as fragrances and scented candles in

the face of still-high inflation.

Consumers, grappling with rising costs of living, are still

cautious on spending on expensive discretionary items ranging

from electronics and apparel to home goods and instead

prioritizing shopping for essential products such as groceries

and medicines.

While the Ohio-based company ramped up promotion and

launched new fragrance and personal care products in men's

categories, its sales were impacted in core markets of the

United States and Canada.

Bath & Body Works ( BBWI ) expects 2024 net sales to decline between

2% and 4%, compared with its prior forecast of a fall of 2.5% to

flat.

It projects annual adjusted profit to be between $3.06 and

$3.26 per share, compared with the $3.05 and $3.35 per share

forecast earlier.

Larger retailers Estee Lauder Elf Beauty were

also hurt by cautious consumer spending for their premium beauty

products and "affordable luxuries" such as lipsticks and

perfumes.

Direct sales in Bath & Body Works' ( BBWI ) U.S. and Canada were

together down 9.7% for the second quarter, compared with the

6.8% decline in the preceding three months.

Net sales of $1.53 billion compared with analysts' average

estimate of $1.54 billion, according to LSEG data.

Its adjusted profit of 37 cents per share for the quarter

ended Aug. 3, however, edged past analysts' estimate of 36

cents, helped by its cost-reduction measures and easing

transportation expenses.