Bath & Body Works beat Wall Street forecast on both the top and bottom lines on Thursday.

The company reported net sales of nearly $1.4 billion for the first quarter ended April 29, a decrease of 4 percent compared to the same period a year earlier, but above analysts’ expectations.

Net income was $81 million, down from $155 million, the company said. Adjusted earnings per diluted share came in at 33 cents for the first quarter, down from 64 cents a year ago, but also beating analyst forecasts of 26 cents.

Bath & Body Works updated its full-year forecast to reflect better-than-expected bottom line results and the impact of the gain on the early extinguishment of debt in the first quarter. It now expects full-year earnings per diluted share to be between $2.70 and $3.10, compared to $3.40 in 2022. It had previously forecast $2.50 to $3.

“We delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives,” Gina Boswell, chief executive officer of Bath & Body Works, said.

“Looking forward, we are moving quickly and implementing our plans to profitably grow sales and drive long-term value for our shareholders. I remain excited about the opportunities ahead, and I am confident that the future is bright for Bath & Body Works,” she added.

The company was formed a year before that in August 2021, when the former L Brands split into two entities: Victoria’s Secret and Bath & Body Works. Each company trades individually on the New York Stock Exchange. Bath & Body Works was number 11 on WWD Beauty Inc’s most recent Top 100 Beauty Manufacturers list, with $4.6 billion in sales for calendar 2022.

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