05.19.22
Bath & Body Works reported net sales of $1.45 billion for the first quarter ended April 30.
The figure represents a decrease of 1% 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%.
“Our business is very strong, our execution is excellent, and our strategy of delivering affordable luxuries to our customers is more relevant than ever,” said Sarah Nash, executive chair and interim chief executive officer of Bath & Body Works. “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.”
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.
“Looking ahead in 2022, we are continuing to plan prudently and use our agility to chase winners,” said Nash. “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.”