Bath & Body Works beats quarterly estimates on strong demand for 'affordable luxury'

Cencora
Bath & Body Works

Cencora

COR

0.00

Bath & Body Works

BBWI

0.00

- Bath & Body Works BBWI.N beat Wall Street estimates for first-quarter sales and profit on Wednesday, helped by strong demand for its scented candles and personal care products, sending its shares up 14% in premarket trading.

  • Despite broader consumer softness, demand for Bath & Body Works' products has remained resilient, as shoppers gravitate toward affordable indulgences such as home fragrances and self-care items — a modest "lipstick effect" that has helped support its core categories.

  • Since February, the company began selling its products through Amazon as it looks to capture demand for "affordable luxury" from affluent young customers.

  • Bath & Body Works posted first-quarter sales of $1.38 billion, beating estimates of $1.36 billion, according to data compiled by LSEG.

  • It logged an adjusted profit of 32 cents per share for the quarter ended May 2, above estimates of 29 cents per share.

  • The Ohio-based company maintained its full-year forecasts for net sales and adjusted profit.

  • The company also said Eva Boratto will step down from her role as chief financial officer, with Tom Javitch set to take over as interim CFO, effective June 12.

  • Boratto, has been appointed as the chief financial officer for drug distributor Cencora COR.N .