Group 1: Earnings Performance - Bath & Body Works reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and up from $0.38 per share a year ago [1] - The earnings surprise for this quarter was 4.26%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - The company posted revenues of $1.42 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.02%, but up from $1.38 billion year-over-year [3] Group 2: Stock Performance and Outlook - Bath & Body Works shares have declined approximately 21.4% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [4] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $1.57 billion, and for the current fiscal year, it is $3.55 on revenues of $7.5 billion [8] - The estimate revisions trend for Bath & Body Works is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7] Group 3: Industry Context - The Retail - Miscellaneous industry, to which Bath & Body Works belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]

Financial Results and Projections - Bath & Body Works, Inc. announced anticipated financial results for Q1 2025, with a focus on revenue growth and user engagement metrics[6]. - The financial results and strategic direction will be further detailed in the upcoming earnings call[6]. Leadership Changes - The company appointed Daniel Heaf as the new Chief Executive Officer effective May 16, 2025, succeeding Gina Boswell[8]. - Ms. Boswell's termination will trigger severance payments as per her executive severance agreement, which was previously disclosed[15]. - The press release detailing these changes was issued on May 19, 2025, highlighting the leadership transition[16]. Compensation and Incentives - Mr. Heaf's annual base salary is set at $1,350,000, with a target annual incentive opportunity of 190% of his base salary[10]. - The company plans to provide Mr. Heaf with an annual equity incentive award opportunity valued at $8,000,000 starting in the 2026 fiscal year[10]. - A one-time award of restricted stock units valued at $2,500,000 will be granted to Mr. Heaf, with vesting occurring over three years[10]. Strategic Focus - The company is expected to continue its focus on market expansion and new product development under the new leadership[16]. - The company is committed to maintaining its competitive edge through strategic leadership and operational improvements[16].

May 29, 2025 Q1 2025 EARNINGS & 2025 GUIDANCE 1 Q1 EARNINGS CALL PARTICIPANTS DANIEL HEAF Chief Executive Officer FORWARD-LOOKING STATEMENTS Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this report or made by our Company or our management involve risks and uncertainties and are subject to change based on various factors, many of whi ...

Core Insights - Bath & Body Works, Inc. reported a strong start to 2025 with net sales of $1,424 million, reflecting a 2.9% increase compared to $1,384 million in the same quarter of 2024 [4][9] - The company appointed Daniel Heaf as CEO, effective May 16, 2025, aiming to leverage his leadership to accelerate growth [3][4] - The company 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 [6][9] Financial Performance - First quarter earnings per diluted share increased by 29% to $0.49, compared to $0.38 in the previous year [5][9] - Operating income for the first quarter was reported at $209 million, up from $187 million in the same quarter last year [5][9] - Net income rose to $105 million from $87 million year-over-year [5][9] Sales Breakdown - U.S. and Canada store sales reached $1,110 million, a 4.3% increase from $1,065 million in the prior year [26] - Direct sales in the U.S. and Canada decreased by 4.3% to $250 million from $261 million [26] - International sales grew by 10.1% to $64 million compared to $58 million in the previous year [26] Store Operations - As of May 3, 2025, the total number of company-operated stores increased to 1,900, with 1,787 in the U.S. and 113 in Canada [27] - The company opened 13 new stores and closed 8 in the U.S. and Canada during the period [27] - Internationally, the total partner-operated stores decreased to 524, with 489 in other international locations [29] Future Guidance - The company expects second quarter 2025 net sales to be flat to up 2% compared to $1,526 million in the second quarter of 2024 [7] - Earnings per diluted share for the second quarter is projected to be between $0.33 and $0.38, down from $0.68 in the same quarter last year [7] - The anticipated impact of current tariff rates is included in the full-year guidance [6][7]

Group 1 - Bath & Body Works (BBWI) is expected to announce fiscal Q1 2025 earnings on May 29, 2025, with analysts predicting earnings of 47 cents per share and revenue of $1.42 billion, reflecting a 21% increase in earnings and a 3% rise in sales year-over-year [1] - In Q4 2024, BBWI reported a 4% decrease in net sales and an 18% decline in earnings per diluted share, attributing these results to a shifted fiscal calendar and reduced consumer demand [2] - The company faces challenges from U.S. tariffs on Chinese imports, sluggish discretionary spending, and increased competition from lower-cost private-label options, alongside high interest rates and economic uncertainty affecting consumer interest in non-essential products [2] Group 2 - For 2025, BBWI's guidance indicates 1-3% sales growth and an EPS range of $3.25-$3.60, suggesting cautious optimism with modest growth compared to adjusted results from 2024 [2] - The current market capitalization of BBWI is $6.5 billion, with total revenue over the last twelve months at $7.3 billion, operational profits of $1.3 billion, and net income of $798 million [2] Group 3 - Historical data shows that BBWI stock has increased 60% of the time following earnings announcements, with a median one-day rise of 4.8% and a maximum recorded increase of 25% [1][5] - There are 20 documented earnings data points over the past five years, with 12 positive and 8 negative one-day returns, indicating positive returns occurred approximately 60% of the time [5]

Core Insights - Bath & Body Works (BBWI) is expected to report quarterly earnings of $0.46 per share, reflecting a 21.1% increase year-over-year, with revenues projected at $1.42 billion, a 2.8% increase from the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised down by 2% in the last 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts forecast 'Geographic Net Sales- Stores - U.S. and Canada' to reach $1.09 billion, a 2.8% increase year-over-year [5] - The estimate for 'Geographic Net Sales- International' is $65.31 million, indicating a 12.6% year-over-year increase [5] - 'Geographic Net Sales- Direct - U.S. and Canada' is estimated at $265.49 million, reflecting a 1.7% increase from the previous year [5] Store Metrics - Total company-operated stores are projected to be 1,903, up from 1,855 in the same quarter last year [6] - Total company-operated stores in Canada are expected to reach 113, compared to 111 a year ago [6] - Total company-operated stores in the U.S. are estimated at 1,790, an increase from 1,744 year-over-year [7] - 'Company-operated U.S. Store Data - Total Selling Square Feet' is projected at 5.09 million, up from 4.94 million [7] Average Store Size and International Operations - The average store size for company-operated U.S. stores is expected to be 2.85 million square feet, slightly up from 2.83 million [8] - Total partner-operated stores internationally are projected to reach 506, compared to 455 last year [8] - Total partner-operated stores internationally are estimated at 541, up from 486 year-over-year [9] Stock Performance - Over the past month, Bath & Body Works shares have returned +2.3%, while the Zacks S&P 500 composite has seen a +8.2% change [9]

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]

Bath & Body Works has chosen a former Nike executive to become its new CEO. The company said Monday that Daniel Heaf, Nike’s former chief strategy and transformation officer, has taken over the CEO role at Bath & Body Works effective immediately. "I am honored and energized by the opportunity to lead Bath & Body Works into its next chapter of growth," he said in a statement. "Bath & Body Works has extraordinary untapped potential and sits at an exciting inflection point." CEO Gina Boswell stepping down prec ...

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]