Bathtub & Physique Works lowered its annual gross sales forecast on Thursday on indicators of slowing demand forward of the essential vacation season, as clients reduce spending on non-essential objects just like the specialty retailer’s candles and soaps.

Excessive residing prices paired with sticky inflation has made customers tighten their budgets in relation to discretionary objects, as they prioritise spending on groceries and meals over pricier dwelling fragrances and private care merchandise.

Analysts have famous the corporate’s product choices have restricted room for progress and should not recession-resistant as they arrive at excessive worth factors.

The retailer expects its 2023 web gross sales to fall by 2.5 p.c to 4 p.c, in contrast with its earlier forecast for a decline of 1.5 p.c to three.5 p.c. Analysts on common count on a decline of two.07 p.c, in line with LSEG information.

The sweetness and skincare agency additionally tightened its forecast for annual adjusted earnings, anticipating a revenue of $2.90 to $3.10 per diluted share, versus a previous projection of $2.80 to $3.10.

Bathtub & Physique Works earned 48 cents per share excluding one-time objects within the third quarter ended Oct. 28, topping analysts’ common estimate of 35 cents per share.

“Our efficiency within the quarter was marked by robust merchandise margin enchancment and the continued advantages of our value optimisation initiatives,” stated CEO Gina Boswell.

The Ohio-based firm’s web gross sales fell 2.6 p.c to $1.56 billion within the quarter, in keeping with analysts’ estimates.

By Juby Babu

Be taught extra:

Bathtub & Physique Works Sees Steeper Gross sales Drop on Slowing Demand

The corporate’s annual gross sales align with outcomes from retailer Estée Laude and division retailer chain Macy’s, each of which reported weak client spending this yr.

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