Bath & Body Works Faces 6.3% Revenue Decline Forecast After $1.59B Flat Q3 Sales
Bath & Body Works reported flat revenues of $1.59 billion last quarter, missing analysts’ revenue, EPS guidance, and EBITDA targets. The company faces a projected 6.3% year-on-year revenue decline this quarter, accelerating from a 4.3% drop a year earlier.
1. Previous Quarter Revenue and Earnings Miss
Bath & Body Works recorded $1.59 billion in revenue last quarter, flat year-on-year and below analysts’ expectations. The company also missed its full-year EPS guidance significantly and fell short of EBITDA estimates, marking multiple revenue misses over the past two years.
2. Q4 Revenue Outlook
For the upcoming quarter, revenues are forecast to decline 6.3% year-on-year, a steeper drop than the 4.3% decrease recorded in the same quarter last year. This projected slowdown underscores ongoing challenges in driving comparable sales growth.
3. Peer Results Provide Benchmark
Sally Beauty delivered flat year-on-year revenue in its recent quarter and saw its share price decline 3.5% following the release. In contrast, Warby Parker reported an 11.2% revenue increase and gained 14.9% in trading, highlighting varied performance within specialty retail.
4. Analyst Estimates Remain Steady
Analysts covering Bath & Body Works have largely reconfirmed their revenue estimates over the last 30 days, signaling expectations that the retailer will maintain its current trajectory. Despite repeated revenue misses, no downward revisions suggest confidence in management’s turnaround efforts.