COLUMBUS, Ohio, Nov. 17, 2021 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (formerly known as L Brands, Inc.) (NYSE: BBWI) today reported third quarter earnings results.
The company reported net sales of $1.681 billion for the third quarter ended Oct. 30, 2021, compared to net sales of $1.702 billion for the third quarter ended Oct. 31, 2020. Sales for the third quarter of 2021 increased 53 percent compared to sales of $1.099 billion in 2019.
Reported earnings per share from continuing operations for the third quarter ended Oct. 30, 2021, were $0.66 compared to $0.69 for the quarter ended Oct. 31, 2020. Third quarter operating income from continuing operations was $408.5 million compared to $436.1 million last year, and net income from continuing operations was $177.1 million compared to $196.1 million last year.
Reported results from continuing operations above include a 2021 pre-tax loss of $89.1 million ($0.25 per share) and a 2020 pre-tax loss of $52.7 million ($0.14 per share) on the early extinguishment of debt.
Excluding the losses on the early extinguishment of debt in both years, adjusted third quarter earnings per share from continuing operations were $0.92 compared to $0.83 last year, operating income from continuing operations was $408.5 million compared to $436.1 million last year, and adjusted net income from continuing operations was $244.8 million compared to $236.2 million last year.
At the conclusion of this press release is a reconciliation of reported-to-adjusted results.
Andrew Meslow, CEO of Bath & Body Works, stated, “In our first quarter as a standalone business, Bath & Body Works continued our positive momentum. We achieved third quarter results that exceeded our expectations, with a net sales increase of 53 percent and an adjusted earnings per share from continuing operations increase of 360 percent compared to the third quarter of 2019. This performance was driven by ongoing strong customer response to our merchandise assortment, a growing, loyal customer base and the exceptional efforts of our associates. As we head into the important Holiday season, our mostly domestic supply chain and market leadership in key categories position us well to deliver continued growth.”
As previously disclosed, the spin-off of the company's former Victoria’s Secret business into a new, independent, publicly traded company, Victoria’s Secret & Co., was completed on Aug. 2, 2021. The results of the Victoria’s Secret business through Aug. 2, 2021, and the costs related to the spin-off are presented as discontinued operations separate from the company’s continuing operations for all periods presented.
Fourth Quarter 2021 OutlookThe company is forecasting fourth quarter earnings per share between $2.10 and $2.25, compared to earnings per share from continuing operations of $1.96 in 2020 and $1.41 in 2019.
Additional third quarter financial information, including management commentary, is currently available at www.BBWInc.com. Bath & Body Works, Inc. will conduct its third quarter earnings call at 9 a.m. Eastern on Nov. 18. To listen, call 1.888.946.7609 (international dial-in number: 1.517.308.9411); conference ID 6362067. For an audio replay, call 1.866.360.3307 (international replay number: 1.203.369.0162); conference ID 6362067 or log onto www.BBWInc.com.
ABOUT BATH & BODY WORKS:Bath & Body Works is one of the world’s leading specialty retailers and home to America’s Favorite Fragrances® offering a breadth of exclusive fragrances for the body and home, including the #1 selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. For more than 30 years, customers have looked to Bath & Body Works for quality, on-trend products and the newest, freshest fragrances. Today, these fragrant products can be purchased at more than 1,750 company-operated Bath & Body Works locations in the U.S. and Canada, and more than 300 international franchised locations, as well as on bathandbodyworks.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made by our company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential” and any similar expressions may identify forward-looking statements. Risks associated with the following factors, among others, in some cases have affected and in the future could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this press release or otherwise made by our company or our management:
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Additional information regarding these and other factors can be found in “Item 1A. Risk Factors” in our 2020 Annual Report on Form 10-K, as updated by the risk factors disclosed under Part II, “Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2021, the risk factors to be disclosed under Part II, “Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the quarter ended October 30, 2021 to be filed with the Securities Exchange Commission, and our subsequent filings.
For further information, please contact:
Bath & Body Works, Inc.: | |
Investor Relations | Media Relations |
Amie Preston | Tammy Roberts Myers |
Investorrelations@bbw.com | Communications@bbw.com |
BATH & BODY WORKS, INC.THIRD QUARTER 2021
Total Sales from Continuing Operations (Millions):
Third Quarter 2021 | Third Quarter 2020 | %Inc/(Dec) | Third Quarter 2021 | Third Quarter 2019 | %Inc/(Dec) | ||||||||
Stores – U.S. and Canada | $ 1,237.9 | $ 1,201.8 | 3.0 | % | $ 1,237.9 | $ 871.7 | 42.0 | % | |||||
Direct – U.S. and Canada | 369.3 | 446.5 | (17.3 | %) | 369.3 | 192.4 | 91.9 | % | |||||
International1 | 73.7 | 53.9 | 36.7 | % | 73.7 | 34.8 | 111.8 | % | |||||
Other | - | - | - | - | 0.3 | - | |||||||
Total Bath & Body Works | $1,680.9 | $1,702.2 | (1.3 | %) | $1,680.9 | $1,099.2 | 52.9 | % |
1 – Results include royalties associated with franchised stores and wholesale sales.
Year-to-Date 2021 | Year-to-Date 2020 | %Inc/(Dec) | Year-to-Date 2021 | Year-to-Date 2019 | %Inc/(Dec) | ||||||||
Stores – U.S. and Canada | $ 3,517.9 | $ 2,303.6 | 52.7 | % | $ 3,517.9 | $ 2,468.4 | 42.5 | % | |||||
Direct – U.S. and Canada | 1,125.6 | 1,254.0 | (10.2 | %) | 1,125.6 | 527.3 | 113.5 | % | |||||
International1 | 210.6 | 158.3 | 33.0 | % | 210.6 | 128.9 | 63.4 | % | |||||
Other | - | - | - | - | 49.9 | - | |||||||
Total Bath & Body Works | $4,854.1 | $3,715.9 | 30.6 | % | $4,854.1 | $3,174.5 | 52.9 | % |
1 – Results include royalties associated with franchised stores and wholesale sales.
Total Company-Operated Stores:
Stores at1/30/21 | Opened | Closed | Stores at10/30/21 | ||
United States | 1,633 | 50 | (11 | ) | 1,672 |
Canada | 103 | - | - | 103 | |
Total Bath & Body Works | 1,736 | 50 | (11 | ) | 1,775 |
Total Partner-Operated Stores:
Stores at1/30/21 | Opened | Closed | Stores at10/30/21 | ||
International | 270 | 30 | (7 | ) | 293 |
International – Travel Retail | 18 | 1 | - | 19 | |
Total International | 288 | 31 | (7 | ) | 312 |
BATH & BODY WORKS, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||
THIRTEEN WEEKS ENDED OCTOBER 30, 2021 AND OCTOBER 31, 2020 | |||||||
(Unaudited) | |||||||
(In thousands except per share amounts) | |||||||
2021 | 2020 | ||||||
Net Sales | $ | 1,680,905 | $ | 1,702,176 | |||
Costs of Goods Sold, Buying and Occupancy | (842,149 | ) | (839,471 | ) | |||
Gross Profit | 838,756 | 862,705 | |||||
General, Administrative and Store Operating Expenses | (430,258 | ) | (426,649 | ) | |||
Operating Income | 408,498 | 436,056 | |||||
Interest Expense | (90,761 | ) | (119,317 | ) | |||
Other Loss | (90,773 | ) | (51,531 | ) | |||
Income from Continuing Operations before Income Taxes | 226,964 | 265,208 | |||||
Provision for Income Taxes | 49,910 | 69,068 | |||||
Net Income from Continuing Operations | 177,054 | 196,140 | |||||
Income (Loss) from Discontinued Operations, Net of Tax | (89,249 | ) | 134,442 | ||||
Net Income | $ | 87,805 | $ | 330,582 | |||
Net Income (Loss) Per Diluted Share | |||||||
Continuing Operations | $ | 0.66 | $ | 0.69 | |||
Discontinued Operations | $ | (0.33 | ) | $ | 0.48 | ||
Total Net Income Per Diluted Share | $ | 0.33 | $ | 1.17 | |||
Weighted Average Shares Outstanding | 266,994 | 283,001 | |||||
BATH & BODY WORKS, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||
THIRTY-NINE WEEKS ENDED OCTOBER 30, 2021 AND OCTOBER 31, 2020 | |||||||
(Unaudited) | |||||||
(In thousands except per share amounts) | |||||||
2021 | 2020 | ||||||
Net Sales | $ | 4,854,110 | $ | 3,715,910 | |||
Costs of Goods Sold, Buying and Occupancy | (2,445,187 | ) | (2,026,491 | ) | |||
Gross Profit | 2,408,923 | 1,689,419 | |||||
General, Administrative and Store Operating Expenses | (1,279,009 | ) | (954,452 | ) | |||
Operating Income | 1,129,914 | 734,967 | |||||
Interest Expense | (301,146 | ) | (316,815 | ) | |||
Other Loss | (196,191 | ) | (47,863 | ) | |||
Income from Continuing Operations before Income Taxes | 632,577 | 370,289 | |||||
Provision for Income Taxes | 149,910 | 62,527 | |||||
Net Income from Continuing Operations | 482,667 | 307,762 | |||||
Income (Loss) from Discontinued Operations, Net of Tax | 255,945 | (323,644 | ) | ||||
Net Income (Loss) | $ | 738,612 | $ | (15,882 | ) | ||
Net Income (Loss) Per Diluted Share | |||||||
Continuing Operations | $ | 1.74 | $ | 1.10 | |||
Discontinued Operations | $ | 0.92 | $ | (1.15 | ) | ||
Total Net Income (Loss) Per Diluted Share | $ | 2.67 | $ | (0.06 | ) | ||
Weighted Average Shares Outstanding | 277,153 | 280,694 | |||||
BATH & BODY WORKS, INC. | |||||||||||||||
ADJUSTED FINANCIAL INFORMATION FROM CONTINUING OPERATIONS | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands except per share amounts) | |||||||||||||||
Third Quarter | Year-to-Date | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
Reconciliation of Reported Operating Income to Adjusted Operating Income | |||||||||||||||
Reported Operating Income | $ | 408,498 | $ | 436,056 | $ | 1,129,914 | $ | 734,967 | |||||||
Restructuring Charges | - | - | - | 29,572 | |||||||||||
Adjusted Operating Income | $ | 408,498 | $ | 436,056 | $ | 1,129,914 | $ | 764,539 | |||||||
Reconciliation of Reported Net Income from Continuing Operations to Adjusted Net Income from Continuing Operations | |||||||||||||||
Reported Net Income from Continuing Operations | $ | 177,054 | $ | 196,140 | $ | 482,667 | $ | 307,762 | |||||||
Restructuring Charges | - | - | - | 29,572 | |||||||||||
Loss on Extinguishment of Debt | 89,146 | 52,668 | 194,610 | 52,668 | |||||||||||
Tax Benefit from the Resolution of Certain Tax Matters | - | - | - | (50,360 | ) | ||||||||||
Tax Effect of Special Items included in Operating Income and Other Loss | (21,417 | ) | (12,640 | ) | (46,754 | ) | (18,353 | ) | |||||||
Adjusted Net Income from Continuing Operations | $ | 244,783 | $ | 236,168 | $ | 630,523 | $ | 321,289 | |||||||
Reconciliation of Reported Earnings from Continuing Operations Per Diluted Share to Adjusted Earnings from Continuing Operations Per Diluted Share | |||||||||||||||
Reported Earnings from Continuing Operations Per Diluted Share | $ | 0.66 | $ | 0.69 | $ | 1.74 | $ | 1.10 | |||||||
Restructuring Charges | - | - | - | 0.09 | |||||||||||
Loss on Extinguishment of Debt | 0.25 | 0.14 | 0.53 | 0.14 | |||||||||||
Tax Benefit from the Resolution of Certain Tax Matters | - | - | - | (0.18 | ) | ||||||||||
Adjusted Earnings from Continuing Operations Per Diluted Share | $ | 0.92 | $ | 0.83 | $ | 2.28 | $ | 1.14 | |||||||
See Notes to Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
BATH & BODY WORKS, INC.NOTES TO RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES(Unaudited)
The “Adjusted Financial Information from Continuing Operations” provided in the attached reflects the following non-GAAP financial measures:
Fiscal 2021
In the third quarter of 2021, adjusted results exclude the following:
In the second quarter of 2021, there were no adjustments to results.
In the first quarter of 2021, adjusted results exclude the following:
Fiscal 2020
In the third quarter of 2020, adjusted results exclude the following:
In the second quarter of 2020, adjusted results exclude the following:
In the first quarter of 2020, adjusted results exclude the following:
The Adjusted Financial Information from Continuing Operations should not be construed as an alternative to the reported results determined in accordance with generally accepted accounting principles. Further, the Company’s definitions of adjusted income information may differ from similarly titled measures used by other companies. Management believes that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. While it is not possible to predict future results, management believes the adjusted financial information is useful for the assessment of the ongoing operations of the Company because the adjusted items are not indicative of the Company’s ongoing operations due to their size and nature. Additionally, management uses adjusted financial information as key performance measures of results of operations for the purpose of evaluating performance internally. The Adjusted Financial Information from Continuing Operations should be read in conjunction with the Company’s historical financial statements and notes thereto contained in the Company’s quarterly reports on Form 10-Q and annual report on Form 10-K.
Source: Bath & Body Works, Inc.