01:49 PM EDT, 08/28/2024 (MT Newswires) -- Bath & Body Works ( BBWI ) on Wednesday lowered its full-year sales outlook after its fiscal second-quarter revenue fell more than projected.

The personal care and home fragrance retailer now expects fiscal 2024 net sales to fall by 2% to 4%, compared with its prior range indicating a 2.5% drop to a flat print. The 53rd week in fiscal 2023 represents a headwind of about 100 basis points to net sales in 2024, according to a Wednesday statement.

"Based on our first half of the year sales trend of down 1.5%, as well as the choppier macroeconomic environment, we do not anticipate the sales acceleration as originally planned," Chief Financial Officer Eva Boratto said on an earnings conference call, according to a Capital IQ transcript.

The retailer's shares were down 7.6 in Wednesday afternoon trade.

Bath & Body expects full-year adjusted earnings of $3.06 to $3.26 a share, down 1% at the midpoint versus its previous guidance, Boratto said on the call. Analysts polled by Capital IQ are looking for $3.24. The company said its outlook includes the expected impact of $400 million of cash deployed towards share repurchases, an increase from the previous expectation of $300 million.

Net sales decreased 2.1% year over year to $1.53 billion in the quarter through Aug. 3, lagging Wall Street's $1.54 billion estimate. Adjusted EPS fell to $0.37 from $0.40, but topped the Street's $0.36 view.

"Our performance came against a challenging backdrop of economic uncertainty and consumers highly focused on finding value," Chief Executive Gina Boswell told analysts. The company's sales performance was affected by its semi-annual sale, which fell short of its expectations, Boswell added.

"In the quarter, home fragrance and body care sales were down low-single digits to last year, with soaps and sanitizers declining mid-single digits," President Julie Rosen said on the call.

For the ongoing quarter, the company expects EPS of $0.41 to $0.47. Third-quarter net sales are expected to range between flat and a 2.5% rise.

Bath & Body now expects roughly $130 million of annual cost savings, up from its prior outlook of $100 million, Boratto told analysts. Full-year capital spending is now pegged at about $250 million, down from its prior $300 million-to-$325 million range. Boratto attributed the cut mainly to cost savings in the company's real estate build-out and timing of multiyear supply chain investment.

Price: 32.13, Change: -2.59, Percent Change: -7.46