Bath & Body Works, Inc. (NYSE: BBWI) Q1 2025 Earnings Call | 5/29/2025

5 days ago

1:01:44

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Earnings Calls

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Bath & Body Works reported strong Q1 2025 results, with net sales up 3% to $1.4 billion, exceeding guidance, and diluted EPS of $0.49, above expectations. The outperformance was driven by successful product innovation, particularly the Disney Princess collaboration, which attracted significant consumer demand and drove record digital engagement. The company maintained positive dual-channel traffic and saw growth across core categories—body care, home fragrance, and soaps/sanitizers—while loyalty membership grew 4% YoY to 39 million. New CEO Daniel Heath emphasized a consumer-centric growth strategy, focusing on digital enhancements, packaging improvements, international expansion, and alternative distribution channels. Key priorities include elevating the e-commerce experience, expanding into new markets (international currently represents 5% of sales), and reducing reliance on promotions. CFO Eva Barado highlighted disciplined cost management, with gross margins expanding 160 bps due to merchandise margin improvements and operational efficiencies. Tariffs remain a headwind, but proactive mitigation strategies are in place. For Q2 2025, the company expects flat to 2% sales growth and EPS of $0.33–$0.38, with full-year guidance maintained at 1–3% sales growth and EPS of $3.25–$3.60. Capital allocation remains balanced, with $300M in share repurchases planned for 2025.

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Bath & Body Works, Inc. (NYSE: BBWI) delivered a strong start to fiscal 2025, reporting Q1 net sales of $1.424 billion—a 2.9% year-over-year increase and the company’s best underlying sales growth since 2021. Adjusted earnings per share surged 29% to $0.49, beating expectations and guidance. Growth was broad-based, with gains across Body Care, Home Fragrance, and Soaps & Sanitizers, and the company maintained its overall market share. Gross margin expanded by 160 basis points to 45.4%, while operating income rose 11.7% to $209 million and net income climbed to $105 million, up 20.7% from last year. The quarter was marked by successful product innovation—including a hit Disney Princess collection—and continued operational excellence, leveraging a predominantly U.S.-based supply chain. The company ended Q1 with 1,900 stores in the U.S. and Canada and 524 international partner-operated locations, with international expansion plans on track for at least 30 net new stores in 2025. Leadership transitioned to new CEO Daniel Heaf, who is expected to drive further growth and customer engagement. Bath & Body Works reaffirmed its full-year 2025 guidance, targeting 1–3% net sales growth and EPS of $3.25 to $3.60, while projecting free cash flow of $750–$850 million. Management remains optimistic about accelerating growth, deepening customer connections, and evolving the brand through continued innovation and operational discipline. About Inside Ticker: For more expert analysis and real-time updates on Bath & Body Works, Inc. (NYSE: BBWI) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #BathAndBodyWorks #BBWI #EarningsCall #Q12025 #RetailStocks #Fragrance #StockMarket #Investing #InsideTicker

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