U.S. Movers: Bath & Body Works, Macy's

Scott Peters
25 Nov, 2024
New York City

Bath & Body Works jumped 14.5% to $34.65 after the specialty retailer reported better-than-expected results in the third quarter. 

Revenue in the fiscal third quarter, with 13 weeks ending on November 2, increased 3% to $1.61 billion from $1.56 billion, net income declined to $106 million from $119 million, and diluted earnings per share dropped to 49 cents from 52 cents a year ago. 

The company estimated the fourth quarter 2024 net sales to decline between 4.5% and 6.5% from $2.91 billion a year ago, largely because of a shift in calendar. 

Fourth quarter net sales are likely to be negatively impacted by 500 basis points because of the extra one week in the quarter a year ago. 

Fourth quarter earnings per diluted share are expected to be between $1.94 and $2.07, compared to $2.55 in the fourth quarter 2023 and adjusted earnings per diluted share of $2.06 in the fourth quarter 2023. 

Macy's declined 1.6% to $16.10 after the department store retailer delayed the release of its third quarter results by December 11. 

Macy’s, Inc. net sales decreased 2.4% to $4.74 billion, with comparable sales down 2.4% on an owned basis and down 1.3% on an owned-plus-licensed-plus-marketplace basis. 

Macy's net sales were down 3.1% and comparable sales fell 3.0%; Bloomingdale's net sales rose 1.4% and comparable sales up 1.0%; and Blue Mercury net sales were up 3.2% and comparable sales advanced 3.3%. 

The company said it identified a single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries. This accounted to approximately $132 to $154 million of cumulative delivery expenses from the fourth quarter of 2021 through fiscal third quarter ended November 2, 2024. 

During this same time period, the company recognized approximately $4.36 billion of delivery expenses. 

There is no indication that the erroneous accounting accrual entries had any impact on the company’s cash management activities or vendor payments, and the employee is no longer with the company. 

Nordstrom and Dell Technologies are among the leading companies scheduled to release earnings this week.