Bath & Body Works, Inc. (NYSE:BBWI) stock surged on Wednesday after the retailer reported first-quarter results above guidance and analyst estimates while reaffirming its full-year outlook.

Adjusted first-quarter EPS came in at 32 cents, topping the 29-cent consensus estimate, while revenue of $1.378 billion beat expectations of $1.362 billion. Net sales fell 3% year over year.

• Bath & Body Works shares are powering higher. Why is BBWI stock up today?

Profitability And One-Time Items

GAAP EPS rose to 90 cents from 49 cents last year, while adjusted EPS declined to 32 cents from 49 cents. Net income increased to $183 million from $105 million, while adjusted net income fell to $65 million.

Results included an $88 million pre-tax gain tied to payment card interchange fee litigation settlements, an $8 million debt extinguishment loss, $8 million in Consumer First Formula transformation costs, and a $62 million tax benefit.

“Our first-quarter results exceeded guidance, but remain below the standard our brand is capable of delivering,” said CEO Daniel Heaf.

“We believe that the foundation we are building will drive improved performance over time, ...