- Bath & Body Works (BBWI) adjusted its full-year 2025 EPS outlook to at least $2.87, a decrease from the previous forecast of $3.35 to $3.60, with estimates around $3.42.
- The company expects fourth-quarter EPS to be at least $1.70, below the anticipated $2.18.
- Third-quarter adjusted EPS was reported at 35 cents, down from 49 cents year-over-year, with estimates at 39 cents.
- For the third quarter, net sales were $1.59 billion, slightly below the $1.63 billion estimate and a 1% decrease year-over-year.
- US and Canada store sales recorded slight growth at $1.22 billion, versus an estimate of $1.25 billion.
- Direct sales in the US and Canada fell to $299 million, a 6.9% drop year-over-year, against the estimate of $309.5 million.
- International sales grew 5.8% to $73 million, narrowly missing the estimate of $73.2 million.
- Operating income shrank by 26% year-over-year to $161 million, below the expected $172.7 million.
- Interest expense decreased to $68 million, compared to $77 million last year, slightly better than the estimated $69.7 million.
- The ending store count was 1,934, surpassing the estimate of 1,913.
- The company revised its 2025 net sales guidance from a predicted growth of 1.5% to 2.7% to a slight decline, relative to $7.31 billion in fiscal 2024.
- Fourth-quarter 2025 net sales are expected to decline in the high single digits compared to $2.8 billion in the same quarter of 2024.
- A new transformation plan, “Consumer First Formula,” is aimed at revitalizing Bath & Body Works to attract younger consumers.
- CEO Daniel Heaf acknowledged the results were below expectations but emphasized actions being taken for sustainable long-term growth.
- Heaf expressed confidence that the effects of the transformation plan would be visible in the coming quarters, though not immediately reflected in financial performance.
Bath & Body Works on Smartkarma
Analyst coverage of Bath & Body Works on Smartkarma has been positive, with Value Investors Club highlighting the strong growth potential under the leadership of new CEO Daniel Heaf. The company’s solid financials, aggressive share buybacks, and anticipated 106% upside to $60.81 have garnered attention. Analysts also noted the positive revenue trends and discounted valuation, signaling a turnaround for Bath & Body Works.
Additionally, Baptista Research emphasized Bath & Body Works’ strategic focus on customer-centric growth initiatives, evident in their second-quarter financial performance. With net sales reaching $1.5 billion and a 1.5% increase compared to the previous year, the company’s success in driving store traffic and executing effective promotional activities has been noteworthy. This positive coverage reflects optimism towards Bath & Body Works’ market positioning and growth strategies.
A look at Bath & Body Works Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, the long-term outlook for Bath & Body Works, a company that manufactures personal care products, looks promising. With high scores in Dividend and Resilience, investors can expect consistent returns and stability from the company. Furthermore, a moderate score in Growth indicates potential for expansion in the future, while the momentum score suggests a steady upward trend in the company’s performance. This combination of factors positions Bath & Body Works well for sustained success in the personal care products industry.
Bath & Body Works, Inc., known for its fragrance, body care, and bath products, caters to a global customer base. With a strong focus on dividends and resilience, the company demonstrates a commitment to rewarding shareholders and weathering market challenges. The competitive scores in growth and momentum underscore Bath & Body Works’ potential for continued development and positive performance in the long run. Overall, the company’s sound financial health and strategic positioning bode well for its future prospects in the personal care products market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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