By Nathalie Voit

Shares of home and body fragrance company Bath & Body Works tumbled to a new 52-week low on May 20 after the retailer downwardly revised its profit expectations for the year ahead.

First-quarter earnings for the 13 weeks ending April 30 totaled $154.9 million, or 64 cents a share, compared with $276.6 million, or 94 cents a share, during the year-ago period, Bath & Body Works said in its first-quarter earnings report released May 18.

Sales declined 1.3% from $1.47 billion to $1.45 billion for the three months ending April 30. However, revenue exceeded expectations at $1.43 billion, the company said.

For fiscal 2022, Bath & Body Works is forecasting earnings from continuing operations per diluted share to be between $3.80 and $4.15, compared to a previous range of $4.30 to $4.70 in earlier guidance. The company reported adjusted earnings of $4.51 in 2021.

Expected earnings for the second quarter were also slashed amid reports of rising raw materials costs, wage hikes, and higher transportation fees. The maker of lotions, candles, home soaps, and sanitizers now projects earnings per diluted share in the upcoming quarter to fall between 60 cents and 65 cents, compared to 77 cents a share in the same period one year ago.

The updated guidance “reflects the company’s decision to accelerate investments in information technology and its customer loyalty program and projected increases in inflationary pressures,” Bath & Body Works said in a statement.

The company’s stock dropped 3.35% in regular trading on Friday to close at $38.69 a share. Bath & Body Works shares are down about 45% so far this year.