(Reuters) - Bath & Body Works (NYSE:BBWI) forecast annual sales and profit below analysts' expectations on Thursday as consumers scaled back spending on non-essential items like candles and fragrances, sending its shares down 9% in premarket trading.
Amid high borrowing and rental costs in the U.S., specialty retailers including Estee Lauder (NYSE:EL) and Macy's (NYSE:M) saw shoppers restricting discretionary spending, and have revised their annual results below Wall Street expectations.
Consumer prices rose more than expected in January, while U.S. government reports indicated a ten-month low in retail sales.
The beauty and skincare firm expects 2024 annual net sales to range between a decline of 3% to flat compared with analysts' expectations of a 1.3% rise, as per LSEG data
The company forecasts annual adjusted earnings to range between $3.00 and $3.35 per diluted share, compared with analysts' estimates of $3.35.
The Ohio-based company posted quarterly sales of $2.91 billion, while analysts on average expected $2.84 billion, according to LSEG.