Bath & Body Works’ stock slides 7% premarket after Q2 revenue falls short of estimates

Bath & Body Works Inc.’s stock
BBWI,
-4.85%
tumbled 7% in premarket trade Wednesday, after the company, which was spun out of Victoria’s Secret, missed sales estimates for its second quarter. The company posted net income of $99 million, or 43 cents a share, for the quarter, down from $120 million, or 52 cents a share, in the year-earlier period. Adjusted per-share earnings came to 40 cents, ahead of the 33 cent FactSet consensus. Sales fell to $1.559 billion from $1.618 billion a year ago, below the $1.564 billion FactSet consensus. Chief Executive Gina Boswell said the company’s sales matched expectations and earnings benefited from a cost optimization and merchandise margin improvement program. The company is now expecting full-year adj. EPS to range from $2.80 to $3.10 and for sales to fall 1.5% to 3.5%. The FactSet consensus is for EPS of $3.04. The stock has fallen 17% in the year to date, while the S&P 500
SPX,
-0.28%
has gained 14%.