Bath & Body Works beats quarterly profit estimates on minimal tariff exposure
Bath & Body Works on Thursday beat first-quarter profit estimates as steady demand for its fragrances and personal care products, combined with its limited exposure to import tariffs, helped counter broader pressures in the U.S. retail sector.
The beauty and skincare retailer has invested in extensive promotions and deals as well as in product innovation, including its Easter-themed Sweet Carrot Cake candles and new variants of Wallflowers fragrances.
The Ohio-based company's marketing initiatives to position its products as ideal gifts and affordable luxuries, especially to a younger consumer demographic, also boosted sales.
Bath & Body Works' steady performance comes at a time when uncertainty surrounding U.S. President Donald Trump 's trade policies has boosted recession fears, prompting inflation-weary consumers to become more selective with discretionary spending.
The company, unlike many of its peers, has been largely insulated from import tariffs as it sources the majority of its merchandise locally. Only about 10% of its merchandise comes from China, with Canada and Mexico accounting for a combined 7%.
"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," CFO Eva Boratto said.
Bath & Body Works' shares were up about 3% in premarket trading following the results.
The company posted profit of 49 cents per share for the quarter ended May 3, compared with analysts' average estimate of 47 cents per share, according to data compiled by LSEG.
Its first-quarter sales rose 3% to $1.42 billion from a year ago, in line with market expectations.
The company maintained its annual net sales and profit forecasts.
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Vice President JD Vance and Elon Musk supported the far-right Alternative für Deutschland in the German election campaign, and accused Germany of suppressing free speech. And Trump is also critical of the record German trade surplus. So far its not clear which attitude Merz will take towards Trump. But standing up to him might be popular in Germany. "If you're the German Chancellor, you go to the Oval Office and you hold your ground. You take a public confrontation with Donald Trump over issues, it might play well for Friedrich Merz domestically, to stand up to Donald Trump's bullying or perhaps refuting his fake news," said Kirkegaard. He said that when Macron interrupted Trump back in February, correcting the US president over European funding to Ukraine, it did him no political damage. And in the case of Zelenskyy, he even benefited domestically for not backing down. This could also be working on Friedrich Merz's mind. 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Israel's ban on international media access to Gaza — which means that journalists must partake in an organised army press tour to enter the territory — has fuelled online speculation and renders independent on the ground verification a major challenge.
