Core Viewpoint - Bath & Body Works, Inc. reported strong performance in the fourth quarter of fiscal 2024, exceeding expectations on both revenue and earnings, driven by product innovation and enhanced customer experience [2][11]. Fourth Quarter 2024 Results - The company reported net sales of $2,788 million for the fourth quarter, a decrease of 4.3% compared to $2,912 million in the previous year, primarily due to a shift in the fiscal calendar [3][38]. - Earnings per diluted share for the fourth quarter were $2.09, down from $2.55 in the previous year [4][27]. - Operating income for the fourth quarter was $678 million, compared to $696 million last year, while net income decreased to $453 million from $579 million [4][21]. Full-Year 2024 Results - For the full fiscal year 2024, net sales decreased by 1.6% to $7,307 million from $7,429 million in fiscal 2023 [6][38]. - Full-year earnings per diluted share were $3.61, down from $3.84 in the previous year [7][27]. - The company repurchased 10.4 million shares for $400 million and reduced long-term debt by $514 million [7]. Adjusted Financial Information - Adjusted earnings per diluted share for fiscal 2024 were $3.29, compared to $3.27 in the previous year [10][27]. - Adjusted net income for the full year was $729 million, down from $747 million in fiscal 2023 [10][26]. 2025 Guidance - The company forecasts net sales growth of 1% to 3% for fiscal 2025, with expected earnings per diluted share between $3.25 and $3.60 [13][14]. - Anticipated free cash flow for fiscal 2025 is projected to be between $750 million and $850 million [13][28]. Share Repurchase Program - The Board of Directors authorized a new share repurchase program of up to $500 million, replacing the previous authority of approximately $120 million [15]. Store Performance - As of February 1, 2025, the total number of company-operated stores increased to 1,895, with 1,782 in the U.S. and 113 in Canada [40]. - Internationally, the total number of partner-operated stores rose to 529 [41].

Financial Results - Bath & Body Works, Inc. is set to release its fourth-quarter financial results on February 27, with expected earnings of $2.04 per share, a decrease from $2.06 per share in the same period last year [1] - The company projects quarterly revenue of $2.78 billion, down from $2.91 billion a year earlier [1] Dividend Announcement - On February 7, Bath & Body Works declared a regular quarterly dividend of 20 cents per share, payable on March 7 to shareholders of record as of February 21 [2] - The company's shares increased by 1.1%, closing at $41.08 on Wednesday [2] Analyst Ratings - Raymond James analyst Olivia Tong maintained an Outperform rating and raised the price target from $42 to $46 [4] - Barclays analyst Adrienne Yih upgraded the stock from Underweight to Equal-Weight, increasing the price target from $34 to $43 [4] - JP Morgan analyst Matthew Boss upgraded the stock from Neutral to Overweight, raising the price target from $41 to $47 [4] - Wells Fargo analyst Ike Boruchow upgraded the stock from Equal-Weight to Overweight, increasing the price target from $42 to $48 [4] - TD Cowen analyst Jonna Kim maintained a Buy rating and raised the price target from $42 to $48 [4]

Core Viewpoint - Bath & Body Works, Inc. (BBWI) is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2024, primarily due to a challenging fiscal comparison and increased expenses [1][3][4]. Financial Performance Expectations - The Zacks Consensus Estimate for BBWI's revenues is $2.77 billion, reflecting a 4.8% decrease from the previous year [1]. - The consensus estimate for earnings per share (EPS) is $2.04, down from $2.06 reported in the same period last year [1]. - Earnings per share are projected to be between $1.94 and $2.07, indicating potential challenges in meeting prior year figures [3]. Factors Impacting Performance - The company is facing a difficult fiscal comparison due to the loss of the 53rd week and five fewer shopping days between Thanksgiving and Christmas compared to the prior year, which is expected to negatively impact net sales [3]. - Rising selling, general and administrative (SG&A) expenses are a concern, with a 4.6% increase in the third quarter to $482 million and a projected 40 basis point rise in SG&A as a percentage of net sales for the fourth quarter [4]. Growth Areas - Despite the challenges, BBWI has seen growth in its core product categories, including Body Care, Home Fragrance, and Soaps & Sanitizers, each showing low-single-digit year-over-year growth in the third quarter [5]. - New seasonal fragrances and giftable items are anticipated to have further boosted sales, particularly among younger consumers [5]. Cost Management Initiatives - The company has implemented a "fuel-for-growth" program, expected to generate $150 million in cost savings for fiscal 2024, exceeding initial estimates [6]. - In the third quarter, BBWI achieved $35 million in cost benefits, contributing to a total of $300 million in savings over the past two years [6]. Earnings Prediction Model - The Zacks model indicates a potential earnings beat for BBWI, supported by a positive Earnings ESP of +1.72% and a Zacks Rank of 2 (Buy) [7].

Core Viewpoint - Bath & Body Works (BBWI) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended January 2025, with the consensus outlook indicating potential impacts on its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 27, 2025, with expectations of quarterly earnings at $2.04 per share, reflecting a -1% change year-over-year, and revenues projected at $2.77 billion, down 4.8% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 0.74% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Bath & Body Works is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.72%, suggesting a bullish outlook on the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Bath & Body Works currently holds a Zacks Rank of 2, enhancing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Bath & Body Works exceeded the expected earnings of $0.46 per share by delivering $0.49, resulting in a surprise of +6.52% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While an earnings beat may not solely dictate stock movement, the combination of a positive Earnings ESP and a favorable Zacks Rank increases the odds of success for investors [14][15]. - Bath & Body Works is positioned as a compelling earnings-beat candidate, but investors should consider other influencing factors as well [16].

Core Insights - Bath & Body Works, Inc. plans to report its fourth quarter and fiscal 2024 financial results on February 27, 2025, before market open [1] - A conference call will be held at 8:30 a.m. EST to discuss the results and provide a business update [1] - Supplemental materials will be available on the company's website prior to the conference call [1] Company Overview - Bath & Body Works is a global leader in personal care and home fragrance, known for its popular products such as fine fragrance mist, body lotion, and 3-wick candles [4] - The company operates over 1,880 locations in the U.S. and Canada, along with more than 500 international franchised locations and an online storefront [4] - The company's supply chain is predominantly U.S.-based, allowing it to deliver quality products at affordable prices [4]

Core Viewpoint - Bath & Body Works (BBWI) has experienced a recent downtrend, losing 8.6% over the past week, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding, which is a bullish signal for the stock [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a downtrend, buyers are starting to emerge [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may be losing control, indicating a potential trend reversal [4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for BBWI, which is a bullish indicator as it typically leads to price appreciation [6]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.1%, indicating that analysts expect better earnings than previously predicted [7]. - BBWI currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [8].

Core Insights - Bath & Body Works (BBWI) is well-positioned to continue its earnings-beat streak, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 6.12% [1][3] Earnings Performance - For the last reported quarter, Bath & Body Works achieved earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, resulting in a surprise of 6.52% [2] - In the previous quarter, the company was expected to earn $0.35 per share but reported $0.37 per share, delivering a surprise of 5.71% [2] Earnings Estimates - Recent estimates for Bath & Body Works have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [3][6] - The current Earnings ESP for the company is +1.72%, reflecting increased analyst optimism regarding its near-term earnings potential [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - Bath & Body Works holds a Zacks Rank of 2 (Buy), suggesting a high likelihood of another earnings beat in the upcoming report [6] Upcoming Earnings Report - The next earnings report for Bath & Body Works is anticipated to be released on February 27, 2025 [6]

Group 1 - The stock of Bath & Body Works, Inc. (BBWI) is experiencing significant attention due to high implied volatility in the options market, particularly the Feb. 21, 2025 $20 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Analysts have a positive outlook on Bath & Body Works, with the company holding a Zacks Rank 2 (Buy) in the Retail – Miscellaneous industry, which is in the top 10% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, three analysts have raised their earnings estimates for Bath & Body Works for the current quarter, resulting in an increase in the Zacks Consensus Estimate from $2.03 to $2.04 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from time decay [4]

Core Insights - Goldman Sachs analyst Kate McShane reiterated a Buy rating on Bath & Body Works Inc. (BBWI) with a price target of $52.00 [1] - The annual Candle Day sale took place on December 7-8, 2024, offering 3-wick candles at $9.95 each, consistent with the previous year [1] - The event lasted longer than in previous years and included both online and in-store sales, differing from the fully in-store experience in 2023 [2] Sales and Promotions - Customers were allowed to purchase up to 24 candles during the event, an increase from previous limits of 15 to 18 [2] - The loyalty program is significant for customer retention, linked to over 80% of BBWI's U.S. sales, with around 38 million active loyalty members as of Q3 2024 [3] - The retailer's app downloads peaked in December 2024, surpassing Sephora in the number of downloads [3] Customer Engagement - The app download trends indicate that the loyalty program is a strong driver of engagement and customer loyalty [4] - Free shipping was available on four out of five days during November and December 2024, compared to only two days in December 2023 [4] - The timing of Cyber Monday in December 2024 may have contributed to the increased shipping offers [4] Performance Metrics - BBWI's Net Promoter Score has improved sequentially since March 2024 [5] - The stock is considered undervalued, with potential upside as the company is expected to post sustainable top-line growth in the coming quarters [5] - As of the last check, BBWI shares were trading lower by 1.88% at $37.00 [5]

Group 1 - Building Benjamins is a free stock picking and market commentary investment newsletter published by Tradition Investment Management, LLC [1] - Benjamin Halliburton, the founder, has a notable background in investment, having founded Tradition Capital Management in 2000 and received multiple accolades including "PSN Manager of the Decade" for All-Cap in the 2000s and for Dividend Value in the 2010s [1] - Halliburton began his investment career at Merrill Lynch in 1986 and has been continuously involved in investing, earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1] Group 2 - Halliburton earned the Chartered Financial Analyst designation in 1994 and was recognized as the top-performing portfolio manager at Brundage, Story and Rose, where his "Disciplined Growth Strategy" outperformed the S&P 500 during the 1990s bull market [1] - He was the youngest partner at his firm and received high praise from senior managing partners, being called "the best investor I have ever met" [1]