An analyst has cautioned that Bath & Body Works’ lower-than-expected forecasts on the top and bottom lines could give a billionaire activist investor some “ammunition” in its proxy battle.
Bath & Body Works beat analyst forecasts in the fourth quarter, but Wall Street zoomed in on the outlook and while Neil Saunders, managing director of GlobalData, believes a large chunk of the pessimism in the forecast is down to external economic factors, he cautioned that it will give some ammunition to Third Point, which is trying to nominate candidates to the board.
During an analysts’ call to discuss earnings, Bath & Body executives stated at the beginning that they did not want to talk about Third Point, but issued a statement late Wednesday. The statement said: “It is unfortunate that Third Point has chosen to announce its intent to pursue a costly public proxy fight despite the board’s good faith engagement efforts over the past several months.”
It now expects first-quarter net sales to decline by low- to midsingle digits, while earnings per diluted share are expected to be between 17 cents and 27 cents, below analysts’ forecasts of 44 cents. Full-year EPS guidance came in between $2.50 and $3, also lower than Wall Street’s bet for $3.60
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WSJ News Exclusive | Third Point to Launch Proxy Fight at Bath & Body WorksDan Loeb’s Third Point plans to launch a proxy fight against Bath & Body Works over what the activist investor says is excessive executive pay and lagging performance
Read more »
Third Point's Loeb plans proxy contest at Bath & Body WorksBillionaire investor Daniel Loeb told retailer Bath & Body Works on Wednesday that his hedge fund Third Point plans to launch a board challenge and said the company's addition of new directors does not address his concerns about governance, capital allocation and executive pay.
Read more »
Bath & Body Works Shareholder Announces Proxy ChallengeAhead of its latest earnings report Thursday, Bath & Body Works looks like it could have battle on its hands.
Read more »
Bath & Body Works adds second new director amid pressure from Third PointBath & Body Works on Tuesday named a veteran chief financial officer with expertise in capital allocation as a new director, marking the second time in two weeks the specialty retailer has expanded its board as it faces pressure from an activist investor.
Read more »
Dan Loeb’s Third Point hedge fund seeks new Bath & Body Works directorsThe addition of two new members – a veteran chief financial officer with expertise in capital allocation and an expert in consumer products – did not appease Loeb’s Third Point.
Read more »
Activist investor Third Point wants to nominate candidates to Bath & Body Works boardActivist investor Third Point LLC laid out a plan to nominate candidates — including a shareholder representative — to the board of Bath & Body Works.
Read more »