Bath & Body Works has revised its full-year adjusted profit forecast, expecting a smaller decline in annual sales due to strong holiday demand for its personal care products. As a result, the company's shares experienced a significant increase of approximately 12% in premarket trading.

To stay competitive in a challenging retail environment, the Ohio-based retailer has introduced new winter fragrances such as Winter Candy Apple and Frosted Coconut Snowball. The company now predicts a decrease in net sales of 1.7% to 2.5% for the full year 2024, an improvement from the previous forecast of a 2% to 4% decline. Additionally, annual adjusted earnings per share are projected to be between $3.15 and $3.28, up from the earlier estimate of $3.06 to $3.26.

In the third quarter, Bath & Body Works reported sales of $1.61 billion, a 3% increase that exceeded analysts' expectations of $1.58 billion. The company also achieved an adjusted profit of 49 cents per share, surpassing the average estimate of 47 cents.