Business
Bath & Body Works stock plunges as retailer misses third-quarter earnings, announces turnaround plan
Sale signs inside the Bath and Body Works store in Edmonton. On Thursday, January 6, 2022, in Edmonton, Alberta, Canada.
Artur Widak | Nurphoto | Getty Images
Bath & Body Works Inc. stock plunged Thursday after the company reported “disappointing” third-quarter earnings and slashed its full-year outlook, citing “macro consumer pressures.”
Shares sank nearly 25% on Thursday and hit a new 52-week low. The stock has plunged more than 50% this year.
CEO Daniel Heaf announced a turnaround plan for the company, with expectations of $250 million in cost savings by 2027, aimed at attracting younger consumers and recentering the company’s focus to its core products.
“Our third quarter results were below expectations, and we are lowering our outlook for the remainder of the year reflecting current business trends and continuation of recent macro consumer pressures,” Heaf said in a statement. “While this is disappointing, we are acting swiftly and decisively to position the business for sustainable, long-term growth.”
Here’s how the company performed in the third quarter, compared with Wall Street’s estimates, according to a survey of analysts by LSEG:
- Earnings per share: 35 cents adjusted vs. 39 cents expected
- Revenue: $1.59 billion vs. $1.63 billion expected
Bath & Body reported net income of $77 million, or 37 cents per share, for the quarter ended Nov. 1 compared with $106 million, or 49 cents a share, last year. Adjusting for one-time items including pretax gains, the company reported earnings of 35 cents a share.
The company also slashed its yearly guidance due to “current business trends.” It also expects fourth-quarter revenue to be down in the high single digits compared with Wall Street estimates of an increase of 1.5%. The guidance, pulling on “recent negative macro consumer sentiment” and tariff impacts, also revised net sales guidance for the full year to low single digits.
Heaf said the company is reorienting its strategy to focus once again on core products like body care, fragrances and soaps. The plan, called the “Consumer First Formula,” includes four strategic priorities: creating disruptive and innovative products, reigniting the brand, winning in the marketplace and operating with speed and efficiency.
The company had previously toyed with introducing other products like laundry detergent and shampoo, but Heaf said on a call with analysts Thursday that its efforts have not delivered promising results or attracted younger consumers.
Heaf said the company will be exiting certain categories like haircare and men’s grooming as it refocuses its priorities.
“Over the years, consumers have evolved. They seek greater efficacy, ingredient-led products, modern packaging, emotive storytelling and elevated multi-channel experiences,” Heaf said. “Our competitors have risen to meet those needs. We have not.”
Heaf said on the call that the company is also recruiting influencers to “ignite social buzz” around the company’s products in an attempt to garner attention from new consumers.
Bath & Body Works also plans to revamp its app and website to increase engagement and aid in product discovery. The company will also lower its free shipping threshold in early 2026.
The government on Thursday kept petrol and high-speed diesel (HSD) prices unchanged at Rs253.17 per litre and Rs257.08 per litre respectively, for the coming fortnight, starting from January 16.
This decision was notified in a press release issued by the Petroleum Division.
Earlier, it was expected that the prices of all petroleum products would go down by up to Rs4.50 per litre (over 1pc each) today in view of variation in the international market.
Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and directly impacts the budgets of the middle and lower-middle classes.
Meanwhile, most of the transport sector runs on HSD. Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, and particularly adds to the prices of vegetables and other eatables.
The government is currently charging about Rs100 per litre on petrol and about Rs97 per litre on diesel.
One of Britain’s most prolific rail fare dodgers could face jail after admitting dozens of travel offences.
Charles Brohiri, 29, pleaded guilty to travelling without buying a ticket a total of 112 times over a two-year period, Westminster Magistrates’ Court heard.
He could be ordered to pay more than £18,000 in unpaid fares and legal costs, the court was told.
He will be sentenced next month.
District Judge Nina Tempia warned Brohiri “could face a custodial sentence because of the number of offences he has committed”.
He pleaded guilty to 76 offences on Thursday.
It came after he was convicted in his absence of 36 charges at a previous hearing.
During Thursday’s hearing, Judge Tempia dismissed a bid by Brohiri’s lawyers to have the 36 convictions overturned.
They had argued the prosecutions were unlawful because they had not been brought by a qualified legal professional.
But Judge Tempia rejected the argument, saying there had been “no abuse of this court’s process”.
JSW Jetour T2 Launch: JSW Motors Limited, the passenger vehicle arm of the JSW Group, is reportedly preparing to enter the Indian car market this year. It has partnered with Jetour, a China-based automotive brand owned by Chery Automobile, and the Jetour T2 SUV could be the company’s first product, according to the reports.
Media reports suggest that the launch will happen independently and not under the JSW MG Motor India joint venture. The SUV will wear a JSW badge and name, instead of the Jetour branding. The upcoming SUV will be assembled at JSW’s upcoming greenfield manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.
According to the reports, the company plans to have the vehicle on sale by the third quarter of this year. With this move, JSW aims to establish itself as a standalone carmaker in India.
Expected Powertrain
The SUV is likely to arrive with a 1.5-litre plug-in hybrid setup. Internationally, this hybrid powertrain is offered with both front-wheel drive and all-wheel drive options. It is still unclear which version will be introduced in India.
Design
In terms of design, the T2 is a large and rugged-looking SUV. It has a boxy and upright stance, similar to vehicles like the Land Rover Defender. Despite its tough appearance, it uses a monocoque chassis instead of a ladder-frame construction.
Size
The SUV measures around 4.7 metres in length and nearly 2 metres in width. This makes it larger than the Tata Safari, even though it is a five-seater. A longer 7-seat version is also sold in some markets.
Price
Pricing details for India are yet to be announced. For reference, the front-wheel-drive five-seat T2 i-DM is priced at AED 1,44,000 (around Rs 35 lakh) in the UAE.
Jetour
Jetour is a brand owned by Chinese automaker Chery. Launched in 2018, it focuses mainly on SUVs and is present in markets across China, the Middle East, Africa, Southeast Asia and Latin America.
NCAA president responds to integrity concerns after alleged point-shaving scheme leads to dozens of arrests
How A$AP Rocky and Rihanna fell in love?
Xreal files patent suit against rival smart glasses maker Viture
-
Politics1 week agoUK says provided assistance in US-led tanker seizure
-
Entertainment1 week agoDoes new US food pyramid put too much steak on your plate?
-
Entertainment1 week agoWhy did Nick Reiner’s lawyer Alan Jackson withdraw from case?
-
Business1 week agoTrump moves to ban home purchases by institutional investors
-
Sports5 days agoClock is ticking for Frank at Spurs, with dwindling evidence he deserves extra time
-
Sports1 week agoPGA of America CEO steps down after one year to take care of mother and mother-in-law
-
Business1 week agoBulls dominate as KSE-100 breaks past 186,000 mark – SUCH TV
-
Sports6 days ago
Commanders go young, promote David Blough to be offensive coordinator