08:38 AM EDT, 06/04/2024 (MT Newswires) -- Bath & Body Works ( BBWI ) issued a downbeat fiscal second-quarter earnings outlook on Tuesday, while the personal care and home fragrance retailer narrowed its full-year guidance.

The retailer expects per-share earnings to come in between $0.31 and $0.36 for the current quarter, below the consensus of analysts polled by Capital IQ for $0.38. Sales are set to be down 2% to flat on a yearly basis.

Shares of the company fell 5.7% in recent premarket activity.

For fiscal 2024, the company now anticipates EPS of $3.05 to $3.35, versus its prior projections for $3 to $3.35. The Street is looking for $3.25. Sales are set to forecast to be down 2.5% to flat for the year, compared with the previous guidance for a range of a 3% decrease to flat.

"With our strong start to the year, we are pleased to narrow our full-year guidance range while raising the midpoint for both the top- and bottom-lines," Chief Executive Gina Boswell said in a statement. "Looking ahead, we remain confident in our ability to deliver long-term profitable growth."

For the first quarter ended May 4, the company's adjusted EPS climbed 15% to $0.38, topping the Street's view for $0.33. Sales ticked down to $1.38 billion from $1.4 billion last year, but above analysts' $1.37 billion estimate.

"We delivered a better-than-expected start to the year with net sales and earnings per share above the high-end of our guidance range," according to Boswell. "We are particularly excited with the success of our product introductions and newness, which drove the performance of both our core business and new adjacencies."

Revenue from stores in the US and Canada rose to $1.07 billion from $1.03 billion last year, while direct sales fell 6.8% to $261 million. International sales tumbled 29% to $58 million. General, administrative and store operating expenses widened to $419 million from $415 million, according to the company.

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