(Reuters) – Bath & Body Works forecast annual sales and profit below analysts’ expectations on Thursday as consumers scaled back spending on non-essential items like candles and fragrances, sending its shares down 9% in premarket trading.
Amid high borrowing and rental costs in the U.S., specialty retailers including Estee Lauder and Macy’s saw shoppers restricting discretionary spending, and have revised their annual results below Wall Street expectations.
Consumer prices rose more than expected in January, while U.S. government reports indicated a ten-month low in retail sales.
The beauty and skincare firm expects 2024 annual net sales to range between a decline of 3% to flat compared with analysts’ expectations of a 1.3% rise, as per LSEG data
The company forecasts annual adjusted earnings to range between $3.00 and $3.35 per diluted share, compared with analysts’ estimates of $3.35.
The Ohio-based company posted quarterly sales of $2.91 billion, while analysts on average expected $2.84 billion, according to LSEG.
(Reporting by Annett Mary Manoj in Bengaluru; Editing by Vijay Kishore)
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