Wall Street expects a year-over-year increase in earnings on higher revenues when Bath & Body Works (BBWI) reports results for the quarter ended April 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 29, 2025, might help the stock move higher if these key numbers are better than e ...

Core Insights - Bath & Body Works, Inc. affirmed its FY2025 guidance, maintaining an adjusted EPS forecast of $3.25 to $3.60 per share, compared to market estimates of $3.52 per share [1] - The company also confirmed its FY2025 sales outlook of $7.38 billion to $7.53 billion, against expectations of $7.47 billion [1] Leadership Changes - Daniel Heaf has been appointed as the new CEO of Bath & Body Works, with the Board expressing confidence in his ability to drive innovative growth and transformation [2] - The Board highlighted Heaf's consumer-first mindset and vision for evolving the brand to remain relevant and resonant with customers [2] Stock Performance - Following the announcement of the new CEO, Bath & Body Works shares increased by 1.2%, trading at $33.97 [2] Analyst Reactions - UBS analyst Jay Sole maintained a Neutral rating on Bath & Body Works and raised the price target from $32 to $36 [5] - Barclays analyst Adrienne Yih kept an Equal-Weight rating and increased the price target from $31 to $35 [5] - Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating with a price target of $43 [5]

Leadership Change - Bath & Body Works has appointed Daniel Heaf, former chief strategy and transformation officer at Nike, as its new CEO effective immediately [1][5] - Heaf's appointment was unanimously approved by the company's board, and he is expected to join the board after the upcoming shareholder meeting in June [5] Previous CEO - Gina Boswell, who served as CEO since November 2022, is stepping down, and her contributions to stabilizing the business post-COVID were acknowledged by the board [3][4] - Boswell was temporarily absent for surgery in March, which may have influenced the leadership transition [4] Company Performance - Bath & Body Works reported preliminary first-quarter net sales of $1.42 billion, reflecting a year-over-year increase of 3% [11] - The company anticipates annual net sales growth of 1-3% and expects earnings per diluted share to be in the range of $3.25 to $3.60 [9] Market Position - As of Monday afternoon, Bath & Body Works had a market capitalization of $7.19 billion [12] - The company operates nearly 1,900 locations in the U.S. and Canada, along with over 500 franchised stores internationally [12] Strategic Outlook - Heaf is recognized for his consumer-centric mindset and experience in driving innovation across global consumer and retail companies [8] - The leadership change comes amid challenges related to uncertain discretionary spending, which has impacted the company's sales and profit forecasts [8]

Leadership Changes - Bath & Body Works has appointed Daniel Heaf as its new CEO, replacing Gina Boswell, marking the second CEO change in less than three years [1][2] - Heaf previously served as Nike's chief transformation and strategy officer and has extensive experience in retail management [4] Performance Overview - Bath & Body Works preannounced first-quarter results, reporting a 3% year-over-year revenue growth to $1.42 billion [5] - Earnings per share increased to 49 cents, surpassing the previous year's 38 cents and exceeding company guidance [5] Strategic Focus - The company aims to accelerate growth by targeting tweens and expanding its appeal to male customers, as well as increasing its international presence [4] - Bath & Body Works is well-positioned in the current trading environment due to its North American supply chain, which mitigates exposure to tariffs [3]

Core Viewpoint - Bath & Body Works, Inc. has appointed Daniel Heaf as the new CEO, effective immediately, following a unanimous decision by the independent directors, with a focus on driving growth and transformation within the company [1][3]. Company Leadership - Daniel Heaf is recognized as a transformative leader with extensive experience in consumer-centric strategies and innovation, having previously held senior roles at Nike and Burberry [2][9]. - Heaf's leadership at Nike included overseeing a significant growth in the direct-to-consumer business, which expanded from $10.4 billion in 2018 to $22.3 billion in 2023 [9]. Financial Performance - The company pre-announced its first quarter 2025 net sales of $1.424 billion, reflecting a 3% increase compared to the previous year, and earnings per diluted share of $0.49, up from $0.38 last year [5]. - Bath & Body Works maintains its full-year 2025 net sales guidance of 1% to 3% growth and earnings per diluted share guidance of $3.25 to $3.60 [5][6]. Strategic Vision - Heaf aims to leverage the company's strong brand and loyal customer base to enhance Bath & Body Works' position as a leading global home fragrance and beauty brand [3][9]. - The Board emphasizes the importance of a forward-looking strategy that honors the company's legacy while embracing necessary transformations to meet consumer demands [3]. Company Overview - Bath & Body Works is a global leader in personal care and home fragrance, with a strong supply chain and a significant presence in both physical and online retail [10]. - As of February 1, 2025, the company operates 1,895 locations in the U.S. and Canada and 529 international franchised locations [10].

Core Insights - Bath & Body Works, Inc. (BBWI) is anticipated to report a year-over-year increase in revenues for the first quarter of fiscal 2025, with a consensus estimate of $1.42 billion, reflecting a 2.8% increase from the previous year [2][4] - The earnings per share (EPS) is expected to improve by 7.9% year-over-year, with a consensus estimate of 41 cents, despite a slight decline of 1 cent in the estimate over the past 30 days [3][4] Revenue Drivers - The company's strategic focus on product innovation, international growth, and disciplined cost management is likely to positively impact its fiscal first-quarter performance [4] - The expansion of the Everyday Luxuries line and strategic collaborations, such as the Disney Princess collection, have generated consumer excitement and are expected to contribute significantly to revenue growth [5][6] - The loyalty program and digital integration, particularly the Buy Online, Pickup In Store option, have effectively captured consumer preferences, further likely impacting the top line [5] International Growth - Bath & Body Works has projected a net sales growth of 1% to 3% for the first quarter, with international sales expected to show a 12.9% increase [6][7] - The company anticipates high single-digit growth in system-wide retail international sales, contributing positively to overall revenue [6] Cost Management and Margins - Disciplined cost management is expected to support the bottom line, despite a projected 50 basis point contraction in gross margin to approximately 43.3% due to a higher international sales mix [7] - The ongoing cost optimization through the Fuel for Growth program is likely to help maintain margins [7] Earnings Prediction - The Zacks model predicts an earnings beat for BBWI, supported by a positive Earnings ESP of +2.57% and a Zacks Rank of 3 [8]

Company Announcement - Bath & Body Works, Inc. plans to report its first quarter 2025 financial results before market open on May 29, 2025 [1] - A conference call will be hosted at 8:30 a.m. EDT to discuss the results and provide a business update [1] Conference Call Details - Investors and analysts can participate by dialing 877-407-9219 (domestic) or 412-652-1274 (international) [2] - A telephone replay will be available by dialing 877-660-6853 (domestic) or 201-612-7415 (international) with access code 13753334 [2] Webcast Information - The audio webcast can be accessed on the events and presentations page of the company's website, with a replay available approximately three hours after the live call [3] Company Overview - Bath & Body Works is a global leader in personal care and home fragrance, offering a variety of products including fine fragrance mist, body lotion, and 3-wick candles [4] - The company operates 1,895 locations in the U.S. and Canada, along with 529 international franchised locations and an online storefront [4]

Core Insights - Bath & Body Works is well-positioned to benefit from its domestic production, which accounts for 80% of its products, allowing it to avoid import tariffs and maintain profitability [1] - The company's primary manufacturing facility, Beauty Park, located in New Albany, Ohio, enhances its ability to quickly respond to consumer demand, reducing the time to market for products [2] - After experiencing a decline in net sales since 2021, the company projects growth in sales for 2025, marking a positive shift in its revenue outlook [3] Group 1 - Domestic production provides a competitive advantage by avoiding tariffs, allowing for stable pricing [1] - The Beauty Park facility enables faster production and distribution, significantly reducing lead times from three months to three weeks [2] - Analysts suggest that revenue constraints were due to pandemic-related buying patterns, and as the market stabilizes, consistent revenue growth is expected [4]

Company Overview - Bath & Body Works (NYSE: BBWI) is a specialty retailer focused on selling soaps, lotions, and fragrances [1] Industry Challenges - The company is currently facing scrutiny due to operating in a challenging industry environment [1] - The ongoing trade war between the United States and China poses additional risks for the retailer [1]

Core Viewpoint - Goldman Sachs analyst Kate McShane maintains a Buy rating on Bath & Body Works Inc (BBWI) with a price target of $49.00, indicating confidence in the company's growth strategies and market positioning [1][5]. Group 1: Customer Engagement and Collaborations - BBWI is enhancing customer traffic during off-peak periods through collaborations, such as the Disney Princess collection, which has led to increased app downloads and search interest [1]. - The Disney collection has shown strong market impact, with peak search interest shortly after its launch [1][2]. Group 2: App Performance Metrics - In February 2025, BBWI's app downloads reached 349,000, marking a 42% year-over-year increase during the Disney Princess collaboration [2][3]. - Despite a slight 2% decline in downloads from February 2024, BBWI's app performance has improved significantly, with downloads up 52% from July 2022 and 214% from February 2019 [3]. Group 3: Pricing and Promotions - A study on BBWI's 3-wick candle pricing revealed a slight increase in prices for January and February 2025 compared to the previous year, while March 2025 prices dropped 13.6% year-over-year [4]. - In-store promotions for the first quarter align with averages since the fourth quarter of 2022, with the company focusing on higher Average Unit Retail (AUR) and continued market innovation [4]. Group 4: Valuation and Market Position - The price target of $49 is based on relative P/E multiples of 45%/55%/65% for downside/base/upside cases, with the stock currently trading at 8.9x NTM P/E, indicating an attractive valuation [5]. - The analyst's bullish rating reflects BBWI's ability to provide value through affordable luxuries and various growth initiatives [5].