Bath and Body Works beats estimates as shares rise 14 percent
The retailer reported sales of 1.38 billion dollars and profit of 32 cents per share. Shares rose 14 percent on strong demand for affordable luxury items.
BATH & BODY WORKS INC beat quarterly sales and profit estimates for the first quarter as resilient demand for home fragrances sent shares up 14% in premarket trading. The retailer reported $1.38 billion in revenue, surpassing the $1.36 billion expected by LSEG-polled analysts. Strong performance in "affordable luxury" categories suggests the United States consumer remains willing to spend on small-scale indulgences.
### Resilience in the Lipstick Effect Shoppers gravitated toward scented candles and personal care items during the quarter ended May 2. This trend reflects a "lipstick effect" where consumers prioritize self-care items amid broader economic softness. Adjusted profit reached 32 cents per share, exceeding the 29 cents per share projected by analysts.
