Bath & Body Works Beats Q1 Estimates, Reaffirms Outlook As New CEO Steps In

Bath & Body Works Inc. (NYSE:BBWI) shares traded higher in premarket on Thursday after the company reported first-quarter fiscal 2025 results.

The company posted a 2.9% year-over-year increase in sales to $1.42 billion, which is in line with analyst expectations. Earnings per share rose to 49 cents from 38 cents a year ago, topping the consensus estimate of 46 cents.

Gross profit rose 6.6% year over year to $646 million, with gross margin improving 160 basis points to 45.4%. Operating income climbed 11.8% to $209 million, with an operating margin of 14.7%.

Bath & Body Works held $636 million in cash and equivalents as of May 3, 2025. At the end of the quarter, inventories increased 6.8% YoY to $869 million.

The operating cash flow for the quarter totaled $188 million, up from $86 million a year ago.

Also Read: These Analysts Boost Their Forecasts On Bath & Body Works

“Our team delivered a strong start to the year driven by the positive customer response to our innovation in the quarter. We’re effectively leveraging our predominantly U.S.-based supply chain to navigate the evolving trade environment, and I’m confident in our ability to adapt to meet the consumer where they are with fragrance innovation and high-quality product at compelling price points as we move through 2025,” said Eva Boratto, CFO of Bath & Body Works.  

Last week, the company announced that its independent directors unanimously appointed Daniel Heaf as CEO, effective May 16, 2025. Following the 2025 Annual Meeting of Shareholders, Heaf was also appointed to the Board of Directors.

Outlook: Bath & Body Works reaffirmed its full-year 2025 outlook, projecting net sales growth of 1% to 3% and earnings per share between $3.25 and $3.60 versus the consensus of $3.57. The forecast includes the impact of current tariffs and $300 million in planned share repurchases.

Free cash flow is expected to range from $750 million to $850 million.

For the second quarter, the company expects flat to 2% sales growth and EPS of $0.33 to $0.38 versus the consensus of $0.42, including tariff impacts. Guidance excludes the estimated $0.05 per share impact from the CEO transition.

Price Action: At last check Thursday, BBWI shares were trading higher by 2.53% at $31.25 in the premarket.

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