COLUMBUS, Ohio, May 18, 2022 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (: BBWI) today reported first quarter 2022 results.
Sarah Nash, Executive Chair and Interim Chief Executive Officer of Bath & Body Works, commented, “Our business is very strong, our execution is excellent, and our strategy of delivering affordable luxuries to our customers is more relevant than ever. We have built on the past two years of extraordinary growth with strong momentum as we entered fiscal 2022. We are pleased to have delivered better-than-expected sales and earnings results in the quarter.”
Nash continued, “With our vertically integrated and approximately 85% domestic supply chain, we are taking advantage of the agility in our inventory decision making to leverage early customer reads and chase our best performers in season. We combine the best of newness and daily use. Our business is very fast, and we are able to quickly adjust to changing customer preferences. We saw positive store traffic and transaction trends as customers engaged more with us in person, took advantage of our buy online-pick up in store offering and responded positively to our products.”
“Looking ahead in 2022, we are continuing to plan prudently and use our agility to chase winners. We are accelerating investments in the business to drive our long-term growth, while at the same time, our team continues to successfully navigate the inflationary environment. Long-term, we continue to see exceptional opportunities to capitalize on Bath & Body Works’ existing strengths and extend the brand’s global potential,” concluded Nash.
First Quarter 2022 Results The company reported net sales of $1.450 billion for the first quarter ended April 30, 2022, a decrease of 1 percent compared to net sales of $1.469 billion for the first quarter ended May 1, 2021. The company’s net sales in the first quarter of fiscal 2022 is on top of 53% net sales growth between fiscal 2019 and fiscal 2021. Excluding the estimated first quarter 2021 benefit of $50 million related to government stimulus payments, net sales increased 2%.
The company reported earnings from continuing operations per diluted share of $0.64 for the first quarter ended April 30, 2022, compared to $0.32 for the quarter ended May 1, 2021. First quarter operating income was $280.0 million compared to $337.2 million last year, and net income from continuing operations was $154.9 million compared to $90.3 million last year. The company’s first quarter operating income was 19.3% of net sales.
Reported 2021 results from continuing operations include a pre-tax loss of $105.5 million ($80.1 million net of tax, or $0.28 per diluted share) associated with the early extinguishment of debt.
On an adjusted basis, which excludes the above charge in 2021, first quarter 2022 earnings from continuing operations per diluted share increased 7% to $0.64 compared to $0.60 last year, and net income from continuing operations was $154.9 million compared to $170.4 million last year.
At the conclusion of this press release is a reconciliation of reported-to-adjusted results, including a description of the significant item.
2022 Outlook The company is committed to managing and forecasting the business prudently. The updated fiscal 2022 outlook reflects the company’s decision to accelerate investments in information technology and its customer loyalty program, as well as projected increases in inflationary pressures. The company is forecasting second quarter earnings from continuing operations per diluted share between $0.60 and $0.65, compared to $0.77 earnings from continuing operations per diluted share in the prior year. For fiscal 2022, the company is forecasting earnings from continuing operations per diluted share between $3.80 and $4.15, compared to $4.51 adjusted earnings from continuing operations per diluted share in 2021 and its previous guidance of between $4.30 and $4.70.
Earnings Call and Additional Information
Additional first quarter financial information, including management commentary, is currently available at www.BBWInc.com. Bath & Body Works, Inc. will conduct its first quarter earnings call at 9:00 a.m. Eastern on May 19. To listen, call 1.888.946.7609 (international dial-in number: 1.517.308.9411); conference ID 6362067. For an audio replay, call 1.866.405.9076 (international replay number: 1.203.369.0610); 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 1,750 company-operated Bath & Body Works locations in the U.S. and Canada and more than 350 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 release to reflect circumstances existing after the date of this 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.
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BATH & BODY WORKS, INC. FIRST QUARTER 2022
Total Sales from Continuing Operations (Millions):
1 – Results include royalties associated with franchised stores and wholesale sales.
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 quarter of 2022, 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.