Bath & Body Works has revised its annual sales forecast downward, citing reduced consumer demand for its high-priced products, such as fragrances and scented candles. The adjustment reflects a shift in consumer spending toward essentials as inflation continues to impact household budgets.
The Ohio-based retailer now expects a 2% to 4% decline in net sales for 2024, adjusting its profit projection to between $3.06 and $3.26 per share. This comes after the company reported net sales of $1.53 billion, which fell short of expectations. Despite this, Bath & Body Works managed to slightly exceed profit estimates with earnings of $0.37 per share, thanks to cost-reduction measures and decreased transportation expenses.
The decline in sales is attributed to consumers prioritizing essential goods over discretionary items in light of high living costs. This trend is not isolated, as other major beauty industry players, including Estee Lauder and Elf Beauty, are also witnessing reduced demand for premium products.
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