August 17, 2022 16:15 ET | Source: Bath & Body Works, Inc. Bath & Body Works, Inc.
COLUMBUS, Ohio, Aug. 17, 2022 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) today reported second quarter 2022 results.
Sarah Nash, Executive Chair and Interim Chief Executive Officer, said “Our results in the second quarter were better than our most recent expectations, reflecting improvement in sales toward the end of the quarter as customers responded to newness in our assortment as well as favorability in expenses. The business continues to perform at levels significantly above pre-pandemic and our team is effectively navigating the challenging environment and inflationary pressure affecting our customers and our business.”
Nash continued, “We are leveraging the dynamic environment to better position ourselves to capture new opportunities and drive future growth. While we are taking aggressive action to control costs and improve overall efficiencies, we remain focused on customer-facing investments, including the upcoming launch of our loyalty program throughout the U.S. Looking to the back half of the year, we believe that our planned Fall and Holiday assortments are well-positioned to resonate with our customers and our inventories are clean and forward facing. Our product development and innovation capabilities, combined with our predominantly North American, vertically integrated supply chain, provide us with the agility to chase into key winners during the season.”
Second Quarter 2022 Results The company reported net sales of $1.618 billion for the second quarter ended July 30, 2022, a decrease of 5% compared to net sales of $1.704 billion for the second quarter ended July 31, 2021, but an increase of 45% compared to the second quarter of 2019.
The company reported earnings from continuing operations per diluted share of $0.52 for the second quarter ended July 30, 2022, compared to $0.77 for the quarter ended July 31, 2021. Second quarter operating income was $241.8 million compared to $384.2 million last year, and net income from continuing operations was $120.0 million compared to $215.3 million last year.
Profit Improvement Initiatives and Organizational Realignment The company is pursuing a number of initiatives to improve financial performance and better position the organization for long-term growth. These initiatives include organizational changes, additional cost control actions and merchandise margin improvement opportunities.
As part of efforts to better position the organization for long-term growth and create organizational efficiencies, the company recently simplified and realigned its operating structure. These actions included the elimination of about 130 roles, the majority of which were leadership positions.
Together these actions are expected to result in estimated savings of approximately $30 million in the second half of 2022, prior to any impact from severance. The company expects to record severance and other charges of approximately $6 million in the third quarter of 2022 related to the organizational actions.
2022 Outlook The company is committed to managing and forecasting the business prudently. The company is forecasting third quarter earnings from continuing operations per diluted share between $0.10 and $0.20. For fiscal 2022, the company is forecasting earnings from continuing operations per diluted share between $2.70 and $3.00.
Earnings Call and Additional Information Additional second quarter financial information, including management commentary, is currently available at www.BBWInc.com. Bath & Body Works, Inc. will conduct its second quarter earnings call at 9:00 a.m. Eastern on Aug. 18. To listen, call 1.888.946.7609 (international dial-in number: 1.517.308.9411); conference ID 6362067. For an audio replay, call 1.800.944.1822 (international replay number: 1.203.369.3872); conference ID 6362067 or log onto www.BBWInc.com.
ABOUT BATH & BODY WORKS: Home of America’s Favorite Fragrances®, Bath & Body Works is a global leader in personal care and home fragrance, including the #1 selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Powered by agility and innovation, the company’s predominantly U.S.-based supply chain enables the company to deliver quality, on-trend luxuries at affordable prices. Bath & Body Works serves and delights customers however and wherever they want to shop, from welcoming, in-store experiences at more than 1,770 company-operated Bath & Body Works locations in the U.S. and Canada and more than 360 international franchised locations to an online storefront at bathandbodyworks.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made by our company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or otherwise made by our company or our management:
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2021 Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, and our subsequent filings.
BATH & BODY WORKS, INC. SECOND QUARTER 2022
Total Sales from Continuing Operations (Millions):
1 – Results include royalties associated with franchised stores and wholesale sales.
BATH & BODY WORKS, INC. CONSOLIDATED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED JULY 30, 2022 AND JULY 31, 2021 (Unaudited) (In thousands except per share amounts)
BATH & BODY WORKS, INC. CONSOLIDATED STATEMENTS OF INCOME TWENTY-SIX WEEKS ENDED JULY 30, 2022 AND JULY 31, 2021 (Unaudited) (In thousands except per share amounts)
BATH & BODY WORKS, INC. ADJUSTED FINANCIAL INFORMATION FROM CONTINUING OPERATIONS (Unaudited) (In thousands except per share amounts)
BATH & BODY WORKS, INC. NOTES TO RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (Unaudited)
The “Adjusted Financial Information from Continuing Operations” provided in the attached reflects the following non-GAAP financial measures:
In the first and second quarters of 2022, there were no adjustments to results.
In the second quarter of 2021, there were no adjustments to results.
In the first quarter of 2021, adjusted results exclude the following:
The Adjusted Financial Information from Continuing Operations should not be construed as an alternative to the reported results determined in accordance with generally accepted accounting principles. Further, the company’s definitions of adjusted income information may differ from similarly titled measures used by other companies. Management believes that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. While it is not possible to predict future results, management believes the adjusted financial information is useful for the assessment of the ongoing operations of the company because the adjusted items are not indicative of the company’s ongoing operations due to their size and nature. Additionally, management uses adjusted financial information as key performance measures of results of operations for the purpose of evaluating performance internally. The Adjusted Financial Information from Continuing Operations should be read in conjunction with the company’s historical financial statements and notes thereto contained in the company’s quarterly reports on Form 10-Q and annual report on Form 10-K.