Tue, Jun 4, 8:57 PM (139 days ago)
Bath & Body Works, Inc. reported a slight decline in net sales for Q1 2024, reaching $1.384 billion, down 0.9% from Q1 2023. This decrease was mainly due to a significant drop in International sales, partially offset by a 3% increase in North American store sales. Gross profit rose by $10 million to $606 million, with a gross margin improvement to 43.8%, driven by higher merchandise margins and lower transportation costs. Operating income increased to $187 million, up 4% from the previous year, with an operating margin of 13.5%. Cash flow from operations was $76 million, while investing activities used $46 million, primarily for new stores and remodels. Financing activities saw a $259 million outflow, including $110 million for debt repurchases and $96 million for share buybacks. The company ended the quarter with $855 million in cash and cash equivalents, down from $1.084 billion at the start of the year. The company anticipates ongoing macroeconomic pressures but expects to achieve cost savings and growth through new product lines and enhanced customer engagement strategies.