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(Reuters) – Bathtub & Physique Works (NYSE:) on Wednesday warned of a steeper decline in annual gross sales as People deferred buying its pricier residence 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 beneath Road expectations.
An increase in prices of dwelling and credit score repayments at larger borrowing prices within the U.S. have prompted shoppers to chop down on buying non-essential gadgets. This has led to a slowdown in demand for merchandise akin to residence fragrances and wonder 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 shopper spending by way of the rest of the 12 months.
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 Road expectations, in line with Refinitiv IBES information.
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.