Bath & Body Works beats quarterly profit estimates on minimal tariff exposure
HighlightsBath & Body Works reported a profit of 49 cents per share for the first quarter, surpassing analysts' average estimate of 47 cents per share. The company's sales increased by 3 per cent to $1.42 billion, driven by strong demand for fragrances and personal care products, as well as effective marketing strategies targeting younger consumers. Bath & Body Works remains largely insulated from import tariffs due to its predominantly U.S.-based supply chain, with only 10% of its merchandise sourced from China.
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 per cent of its merchandise comes from China, with Canada and Mexico accounting for a combined 7 per cent.
"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 per cent 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 per cent to $1.42 billion from a year ago, in line with market expectations.
The company maintained its annual net sales and
profit forecasts
.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scroll.in
28 minutes ago
- Scroll.in
US rejects India's challenge to aluminium, steel tariffs at WTO
The United States has rejected India's notice to the World Trade Organization proposing retaliatory tariffs after Washington increased the import duties on aluminium and steel to 25%, The Indian Express reported on Tuesday. The US argued that it had imposed the tariffs on the grounds of national security and claimed there were procedural errors in India's case. In a note sent to the World Trade Organization on May 23, the US stated that India had wrongly treated the tariffs on aluminium and steel as safeguard measures, the newspaper reported. Washington said that it had imposed the levies under section 232 of the US law, which allows such measures if imports are considered a threat to national security. In response to the challenge made by India, the US told the World Trade Organization that it 'will not discuss the section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure', reported The Indian Express. The US also claimed that India had committed procedural errors by not acknowledging Washington's offer to discuss the tariffs in a communication dated April 16. 'Accordingly, India has not complied with the obligations under the Agreement on Safeguards, the agreement that it mistakenly contends applies to the tariffs in question,' the newspaper quoted the US as having said. On May 9, India notified the World Trade Organization that it may impose retaliatory tariffs on the US after Washington increased the import duties on aluminium and steel to 25%. The Donald Trump administration had first imposed higher tariffs on aluminium and steel imports in 2018. This was modified in February to impose duties of 25% on imports of the two metals. The measures took effect in March. Washington also removed country-specific and product-specific exemptions that several countries had managed to negotiate. On Friday, US President Donald Trump announced that his administration will double the tariffs on steel to 50%. While Washington has claimed that the increased tariffs had been taken in the interest of national security and were not safeguard measures, New Delhi argued that the actions were safeguard measures. 'The measures have not been notified by the United States to the WTO, but are, in essence, safeguard measures,' The Hindu had quoted India as having communicated to the international organisation in May. 'India maintains that the measures taken by the United States are not consistent with the General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards.' India argued that it had the right to impose retaliatory tariffs as the US had not held consultations, as are mandatory under the Agreement on Safeguards. India's levies were to take effect a month from the date it notified the World Trade Organization. New Delhi said that the measures it was proposing would be in the form of suspending concessions on select products from the US. This effectively meant an increase in tariffs on the products. The Indian reciprocal tariffs could be imposed on imports worth $7.6 billion from the United States, which would lead to a duty collection of $1.9 billion, The Hindu had quoted the communication as saying.
Time of India
an hour ago
- Time of India
Gold price prediction today: Where are gold rates headed on June 3, 2025 and in the near-term?
Considering the ongoing US-China tension and weakness in the US Dollar Index, it is advisable to buy the dips with stoploss below $3,325/$3300. (AI image) Gold price prediction today: Gold rates have shown considerable volatility recently, without establishing a definitive trend in either direction. International developments, particularly the trade tariff decisions by Donald Trump and ongoing geopolitical tensions, continue to influence daily gold prices. Given these unpredictable circumstances, investors face uncertainty about their investment strategies. What's the outlook on gold prices in the near term? Praveen Singh, Senior Fundamental Research Analyst- Currencies and Commodities at Mirae Asset Sharekhan shares his views: Gold Performance: Following a weekly loss of 2.02% in the week ending May 30, spot gold prices are sharply higher this week due to renewed safe haven demand as US-China and other geopolitical concerns come to the fore. On Monday, China accused the US of violating the US-China trade truce as the US imposed further chip technology curbs. Last week, the US said that it will revoke visas for Chinese students who relate to the Chinese Communist Party or are studying in critical fields. The US Administration also barred the export of critical US jet engine parts and technology to China. It plans to broaden restrictions on China's tech sector with new regulations to capture subsidiaries of companies under US curbs as well. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Container Houses Morocco (Prices May Surprise You) Container House | Search Ads Search Now Undo China's slow approval for rare earth exports is being cited as the cause behind US's actions against China. Gold Data roundup: US data released Monday were slightly weaker than expected. ISM manufacturing came in at 48.50 Vs the forecast of 49.50 as the manufacturing sector contracted for the third straight month on tariff uncertainties. ISM's Import component slumped to a 16-year low, while the export gauge fell to the lowest level in five years. Contraction spending in April contracted by 0.4% as against the forecast of a 0.2% expansion. The Eurozone's manufacturing PMI (May) at 49.40 matched the estimate in its final reading, while the UK's manufacturing PMI at 46.40 beat the estimate of 45.10. Gold ETF: Total known global gold ETF holdings stood at 88.508Moz as of May 30. Holdings recorded first weekly inflow after five straight weeks of outflows as holdings are up 6.82% YTD. Upcoming data and events: The European Central Bank will deliver its monetary policy on June 5 wherein the Central Bank is expected to cut the key rates by 25 bps-- its eighth rate cut since the Bank embarked on its rate cutting spree in June 2024. Major US data to be released ahead in this week include JOLTs job openings (April), ADP employment change (May), ISM Services (May), trade balance (April) and nonfarm payroll (May). Investors will also monitor China's manufacturing and services PMIs (May) and Europe's services PMIs (May). Geopolitical watch: The Security Service of Ukraine (SBU) carried out a massive drone attack deep inside Russia on June 1, which reportedly hit 41 Russian aircrafts. Both the countries concluded their latest peace talks in Istanbul on June 2; however, peace prospects remain dim. US Dollar Index and yields: At the time of writing, the US Dollar Index was at 98.71, down nearly 0.60% on the day, lowest since April 2022 barring April 2024 --reciprocal tariff sell-off period. Big investments cutting their Dollar Index forecasts is also weighing on the Greenback. Ten-year US yields and 30-year US yields respectively at 4.44% and 4.9781% were up by 0.90% on the day. Gold price Outlook: A close above $3,372 will be quite positive for the metal. Considering the ongoing US-China tension and weakness in the US Dollar Index, it is advisable to buy the dips with stop loss below $3,325/$3300. Worsening geopolitical situation and further weakness in the US Dollar Index may help the yellow metal test the psychological resistance at $3400, followed by possible tests of next resistance levels at $3414/$3435. Traders need to monitor the evolving China-US trade situation to minimize their risks. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
an hour ago
- The Hindu
Coinbase breach linked to customer data leak in India
Cryptocurrency exchange Coinbase knew as far back as January about a customer data leak at an outsourcing company connected to a larger breach estimated to cost up to $400 million, six people familiar with the matter told Reuters. At least one part of the breach, publicly disclosed in a May 14 SEC filing, occurred when an India-based employee of the U.S. outsourcing firm TaskUs was caught taking photographs of her work computer with her personal phone, according to five former TaskUs employees. Three of the employees and a person familiar with the matter said Coinbase was notified immediately. The ex-employees said they were briefed on the matter by company investigators or colleagues who witnessed the incident in the Indian city of Indore, noting that the woman and a suspected accomplice were alleged to have been feeding Coinbase customer information to hackers in return for bribes. The ex-employees and person familiar with the matter said more than 200 TaskUs employees were soon fired in a mass layoff that drew Indian media attention. Coinbase had previously blamed "support agents overseas" for the breach, which it estimated could cost up to $400 million. Although the link between TaskUs and the breach was previously alleged in a lawsuit filed last week in federal court in Manhattan, details of the incident, reported here for the first time, raise further questions over when Coinbase first learned of the incident. Coinbase said in the May SEC filing that it knew contractors accessed employee data "without business need" in "previous months." Only when it received an extortion demand on May 11 did it realize that the access was part of a wider campaign, the company said. In a statement to Reuters on Wednesday, Coinbase said the incident was recently discovered and that it had "cut ties with the TaskUs personnel involved and other overseas agents, and tightened controls." Coinbase did not disclose who the other foreign agents were. TaskUs said in a statement that two employees had been fired early this year after they illegally accessed information from a client, which it did not identify. "We immediately reported this activity to the client," the statement said. "We believe these two individuals were recruited by a much broader, coordinated criminal campaign against this client that also impacted a number of other providers servicing this client." The person familiar with the matter confirmed that Coinbase was the client and that the incident took place in January. Reuters could not determine whether any arrests have been made. Police in Indore did not return a message seeking comment.
