Bath & Body Works beat Wall Street forecasts on the highest and bottom lines within the third quarter, however the crucial holiday season just isn’t looking so strong.

The retailer reported net sales of $1.56 billion for the third quarter ended Oct. 28, a decrease of two.6 percent in comparison with a 12 months ago, but above Wall Street estimates for $1.55 billion. 

Net income was $119 million, up from $91 million in 2022. Adjusted earnings per diluted share was 48 cents, again beauty analysts’ forecasts for 35 cents. 

Nevertheless, the corporate downgraded its full-year sales forecast. It now expects net sales to say no 2.5 percent to 4 percent. Previously it had forecast a drop of between 1.5 percent and three.5 percent.

The corporate expects fourth-quarter net sales to say no 1 percent to five percent in comparison with $2.89 billion within the fourth quarter of 2022. 

Gina Boswell, chief executive officer of Bath & Body Works, said, “As we close out the 12 months, our team stays focused on delivering a fantastic holiday assortment and omnichannel experience for purchasers while leveraging our agility to chase demand. Amidst the continued macroeconomic pressures affecting consumers, we proceed to execute against our strategic initiatives to drive growth and create long-term value.”