Bath & Body Works expects to report adjusted earnings growth of 16 percent

Bath & Body Works, Inc. reported net sales of 3.027 billion dollars for the fourth quarter ended January 29, 2022, an increase of 11 percent compared to 2.718 billion dollars for the fourth quarter ended January 30, 2021.

The company expects to report fourth quarter earnings per share from continuing operations of approximately 2.25 dollars, compared to its initial guidance of 2.10 dollars to 2.25 dollars per share, and compared to 1.96 dollars per share from continuing operations in 2020.

Commenting on the update, Andrew Meslow, CEO of Bath & Body Works, said in a release: “Driven by our focus on staying close to our customers and our commitment to operational excellence, Bath & Body Works achieved record sales and earnings during the fourth quarter. Importantly, we are ending the fiscal year with approximately 2 billion dollars in cash, and our strong balance sheet is allowing us meaningful opportunities to drive enhanced value for our shareholders.”

The reported result includes a charge of approximately 3 cents per share related to the write-off of inventory that was destroyed by a tornado at a vendor’s factory. Excluding this charge, the company expects to report adjusted fourth quarter earnings per share from continuing operations of approximately 2.28 dollars, an increase of 16 percent compared to last year.

The company also announced approval by the board of directors for the authorization of a 33 percent increase in the company’s annual dividend to 80 cents per share and the declaration of the company’s quarterly dividend of 20 cents per share, payable on March 4, 2022, to shareholders of record as of February 18, 2022.

“With the company’s strong performance in fiscal 2021 and our confidence in Bath & Body Works’ continued momentum, the board is pleased to authorize a significant new 1.5 billion dollars share repurchase program, 1 billion dollars of which will be deployed this week, along with a 33 percent increase in the company’s annual dividend,” added Sarah Nash, chair of the company’s board.