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 USD 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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