Bath & Body Works sees steeper sales drop on slowing demand By Reuters

(Reuters) – Bathtub & Physique Works (NYSE:) on Wednesday warned of a steeper decline in annual gross sales as People deferred buying its pricier house fragrances and private care merchandise amid still-high inflation pinching family budgets.

Shares of the Ohio-based firm fell about 2% in premarket buying and selling after the retailer forecast current-quarter gross sales and revenue under Avenue expectations.

An increase in prices of residing and credit score repayments at increased borrowing prices within the U.S. have prompted customers to chop down on buying non-essential gadgets. This has led to a slowdown in demand for merchandise comparable to house fragrances and sweetness and skincare.

The corporate’s outcomes come consistent with specialty retailer Estee Lauder (NYSE:) and division retailer chain Macy’s (NYSE:), which have warned of weak client spending by way of the rest of the yr.

Bathtub & Physique Works now expects annual web gross sales to say no between 1.5% and three.5%, in contrast with its earlier forecast of flat web gross sales to a mid-single-digit proportion decline.

To fend off successful on margins from surging labor and manufacturing prices, the retailer resorted to cost hikes on its merchandise that additional discouraged demand from inflation-weary People.

The corporate’s second-quarter gross sales fell 3.6% to $1.56 billion, largely consistent with Avenue expectations, based on Refinitiv IBES knowledge.

Excluding gadgets, it earned 40 cents per share within the quarter, topping analysts’ expectations of a revenue of 33 cents per share.

It additionally raised its annual revenue forecast to adjusted earnings per share now anticipated to vary between $2.80 and $3.10, in contrast with $2.68 and $3.08 beforehand anticipated.