Shares of Bath & Body Works fell Wednesday after the company lowered its sales and earnings outlook, citing a more challenging macroeconomic environment.
“Our data indicates that customers, particularly lower income customers, have become more cost conscious and are limiting purchases,” the company said in a statement.
Bath & Body Works‘ stock was down almost 8% at $27.70 in morning trading.
For the second quarter, the home fragrance and personal care retailer said it now expects sales to be down 6% to 7% from the same time last year. For the full year, it now expects sales to be down mid- to high-single digits from 2021.
Previously, Bath & Body had forecast second-quarter and full-year sales to grow in the low single digits from a year ago.
Bath & Body Works also said it now expect second-quarter earnings from continuing operations to be 40 to 42 cents per share, down from its previous forecast of 60 to 65 cents a share.
The company said it sought to address the more cautious spending by increasing sales and promotions, but noted that the moves have impacted its margins.
Bath & Body Works is scheduled to report its second-quarter earnings on August 17.
