Bath & Body Works reported second quarter sales fell 2.1% to $1.5 billion.

According to CEO Gina Boswell, BBW improved gross margins and executed on its Fuel for Growth initiatives. And yet, the company is taking a prudent approach to its outlook and adjusting full-year guidance given the choppier macroeconomic environment and first-half sales trends.

For fiscal 2024, BBW expects net sales to decline 2-4% relative to the $7.4 billion net sales in fiscal 2023. The 53rd week in fiscal 2023 represents a headwind of approximately 100 basis points to net sales change in fiscal 2024, according to the company. Full-year 2024 earnings per diluted share is now expected to be between $3.37 and $3.57, compared to earnings per diluted share of $3.84 in 2023.

“I’m confident in our strategy and that we are executing the right initiatives to position the business to deliver long-term, sustainable and profitable growth while enhancing shareholder value. While customers continue to be cautious and value-seeking, their response to our newness and innovation has been positive,” said Boswell. “We are leveraging our agile business model to navigate the dynamic retail environment. We are poised to meet their demand through our good, better, best assortment, which offers exceptionally crafted products and fragrances at price points for everyone. The strength of our high-margin business model and strong cash flow generation enables us to continue investing in our key initiatives, while at the same time returning cash to shareholders through dividends and planned share repurchases.”