Latest news with #BBWI
Yahoo
12 hours ago
- Business
- Yahoo
Why Bath & Body Works, Inc. (BBWI) Crashed On Monday
We recently published a list of . In this article, we are going to take a look at where Bath & Body Works, Inc. (NYSE:BBWI) stands against other worst performers on Monday. Bath & Body Works dropped its share prices by 4.94 percent on Monday to end at $26.73 apiece as investor sentiment was dampened by an investment firm's lower price target for the company. On Friday, Telsey Advisory Group reduced its price target for Bath & Body Works, Inc. (NYSE:BBWI) to $38 from $43 previously, but maintained it 'buy' recommendation on its stock. A female customer browsing a variety of body care products in a retail store. According to Telsey, the lower price target was based on the company's continued tariff pressure amid its exposure to the ongoing global trade war. In the first quarter of the year, Bath & Body Works, Inc. (NYSE:BBWI) grew its net income by 21 percent to $105 million from $87 million in the same period last year. Net sales inched up by 3 percent to $1.4 billion from $1.38 billion year-on-year. For the full-year period, Bath & Body Works, Inc. (NYSE:BBWI) maintained its net sales guidance of growing from 1 to 3 percent. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Earnings Release: Here's Why Analysts Cut Their Bath & Body Works, Inc. (NYSE:BBWI) Price Target To US$42.33
Bath & Body Works, Inc. (NYSE:BBWI) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to US$28.12 in the week after its latest first-quarter results. Bath & Body Works reported in line with analyst predictions, delivering revenues of US$1.4b and statutory earnings per share of US$0.49, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Taking into account the latest results, Bath & Body Works' 16 analysts currently expect revenues in 2026 to be US$7.48b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 9.7% to US$3.48 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.49b and earnings per share (EPS) of US$3.56 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts. View our latest analysis for Bath & Body Works It might be a surprise to learn that the consensus price target fell 5.8% to US$42.33, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bath & Body Works at US$63.00 per share, while the most bearish prices it at US$30.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Bath & Body Works' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.4% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.7% per year. Although Bath & Body Works' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bath & Body Works. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bath & Body Works' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. With that in mind, we wouldn't be too quick to come to a conclusion on Bath & Body Works. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bath & Body Works going out to 2028, and you can see them free on our platform here.. It is also worth noting that we have found 3 warning signs for Bath & Body Works (1 is potentially serious!) that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Goldman Sachs Reduced Bath & Body Works Inc (BBWI) Price Target
Goldman Sachs maintained its Buy recommendation on Bath & Body Works, Inc. (NYSE:BBWI) shares and reduced its price objective from $44 to $43. A female customer browsing a variety of body care products in a retail store. Bath & Body Works, Inc. (NYSE:BBWI)'s strong first-quarter results were probably overshadowed by guidance that fell short of expectations. However, the analyst informs investors in a research note that today's 6% stock price loss "seems overdone" because the firm's FY25 EPS forecast is only declining by roughly 3%. The Ohio-based business profited from U.S. sourcing, with only 10% of items coming from China and 7% from Canada and Mexico, reducing exposure to tariffs amid President Trump's continued trade uncertainty. Bath & Body Works, Inc. (NYSE:BBWI)'s CFO Eva Boratto noted the company's innovative products, such as Easter-themed candles, its robust domestic supply chain, and its ability to appeal to younger consumers through gift packaging and promotions. While we acknowledge the potential of BBWI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BBWI and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Bath & Body Works Q1 Earnings Beat Estimates, Sales Rise Y/Y
Bath & Body Works BBWI posted first-quarter fiscal 2025 results, wherein the top line met the Zacks Consensus Estimate and the bottom line surpassed the same. Also, both net sales and earnings improved year over year. The company began fiscal 2025 with a strong performance, supported by positive customer response to product innovation and effective use of its predominantly U.S.-based supply chain amid evolving trade dynamics. The business is well-positioned to deliver fragrance innovation and high-quality products at compelling price points. Leadership transitions are expected to support BBWI's strategy to strengthen its foundation and drive global growth in the home fragrance and beauty categories. BBWI's Quarterly Performance: Key Metrics & Insights The company reported adjusted earnings of 49 cents per share in the fiscal first quarter and beat the Zacks Consensus Estimate of 47 cents. Also, the figure increased 28.9% from adjusted earnings of 38 cents in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Net sales increased 2.9% year over year to $1,424 million due to compelling innovation. This marks the strongest underlying sales performance since fiscal 2021, driven by the successful collaboration with Disney. Net sales for Stores - U.S. and Canada increased 4.3% year over year to $1.11 billion, which surpassed the Zacks Consensus Estimate of $1.09 billion. Direct - U.S. and Canada net sales tumbled 4.3% to $250 million, missing the consensus estimate of $265.5 million. International operations' net sales increased 10.1% to $64 million, lagging the Zacks Consensus Estimate of $65.3 million. Sneak Peek Into BBWI's Margins The gross profit increased 6.6% year over year to $646 million. Also, the gross margin expanded 160 basis points to 45.4% in the quarter under review. This expansion was primarily driven by a 100-basis-point improvement in the merchandise margin, largely attributable to a low-single-digit mix-adjusted average unit retail increase. Additionally, favorable buying and occupancy leverage contributed to the improvement, as buying and occupancy (B&O) expenses were flat amid net sales growth. General, administrative and store operating expenses increased 4.3% year over year to $437 million. As a percentage of net sales, this metric deleveraged 40 basis points year over year to 30.7% in the quarter under review due to incremental investments in marketing and store associate training. Bath & Body Works reported an operating income of $209 million in the fiscal first quarter, up 11.8% from the year-ago quarter. BBWI's operating margin increased 120 basis points to 14.7% in the quarter. Net income was $105 million, up 20.7% from $87 million in the year-ago quarter. Bath & Body Works' Store Update The company ended the quarter with 1,900 stores, wherein it operated 1,787 stores in the United States and 113 in Canada. In the first quarter of fiscal 2025, it opened 13 stores in total and closed eight stores. Internationally, partners opened 14 stores and closed 19, ending the quarter with 524 stores. The net closures were planned and primarily involved underperforming locations in the Middle East. International expansion plans for fiscal 2025 remain on track, with at least 30 net new store openings planned. BBWI's Financial Health Snapshot Bath & Body Works ended the quarter with cash and cash equivalents of $636 million, long-term debt of $3.89 billion, and long-term operating lease liabilities of $895 million. Total inventory at the end of the fiscal first quarter increased 7% from the previous year, slightly above initial plans. The increase was attributed to tariffs on purchases and strategic inventory pull forwards to help offset the tariff impacts. In the fiscal first quarter, the company provided $188 million in net cash for operating activities. Bath & Body Works' Q2 Outlook For the second quarter of fiscal 2025, Bath & Body Works expects net sales to be flat to up 2% from the prior year. This outlook reflects current business trends and the impacts of accounting items in the prior year, primarily related to the loyalty program. System-wide international retail sales are projected to increase in the high-single digits. However, reported net sales are anticipated to decline in the mid-single digits due to the timing of ship sales, which occurred in the first quarter of fiscal 2025. The company expects a fiscal second-quarter gross margin of 41%, which suggests no change from the prior year's actual and includes the impacts of tariffs. The SG&A rate is projected to be 30%, driven by wage rate inflation and continued investments in technology. Non-operating expenses are expected to be $65 million. Based on these assumptions, fiscal second-quarter earnings per share are forecast to be 33-38 cents. BBWI Stock Past Three-Month Performance BBWI's FY25 Outlook For fiscal 2025, the company is maintaining its net sales growth projection of 1-3%. This outlook includes the expected impacts of all currently enacted tariffs imposed by the United States and other governments but excludes the anticipated financial implications of the CEO transition. The gross margin is projected at 44%, supported by cost discipline, while SG&A is expected to be 27.5%. Net non-operating expenses are forecast at $255 million, reflecting lower interest expenses due to debt reduction in 2024. Full-year earnings per share are projected to be $3.25-$3.60, whereas it reported $3.61 in fiscal 2024. In terms of capital allocation, the company plans to invest $250-$270 million in capital expenditure, primarily in real estate and technology, with some supply-chain projects shifting from 2024 to 2025. The free cash flow is projected between $750 million and $850 million, including working capital improvements from the Fuel for Growth initiatives. The annual dividend is expected to be 80 cents per share, with $300 million in share repurchases planned for the year. Shares of this Zacks Rank #3 (Hold) company have lost 19.1% in the past three months against the industry 's growth of 6.3%. Key Picks Some better-ranked stocks are Urban Outfitters Inc. URBN, Canada Goose GOOS and Allbirds Inc. BIRD. Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for URBN's fiscal 2025 earnings and sales implies growth of 20.9% and 8%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 29%. Canada Goose is a global outerwear brand. GOOS is a designer, manufacturer, distributor and retailer of premium outerwear for men, women and children. It carries a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for Canada Goose's current fiscal year's earnings and sales suggests growth of 10% and 2.9%, respectively, from the year-ago actuals. Canada Goose delivered a trailing four-quarter average earnings surprise of 57.2%. Allbirds is a lifestyle brand that uses naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for BIRD's current financial year's earnings indicates growth of 16.1% from the year-ago actual. The company delivered a trailing four-quarter average earnings surprise of 21.3%. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report Bath & Body Works, Inc. (BBWI): Free Stock Analysis Report Allbirds, Inc. (BIRD): Free Stock Analysis Report
Yahoo
4 days ago
- Business
- Yahoo
Bath & Body Works Inc (BBWI) Q1 2025 Earnings Call Highlights: Strong Sales Growth and ...
Net Sales: Increased by 3%, reaching $1.4 billion, at the high end of guidance. Earnings Per Diluted Share: $0.49, exceeding the high end of the range. Gross Profit Rate: 45.4%, an increase of 160 basis points compared to the prior year. Operating Income: $209 million, representing 14.7% of net sales, an improvement of 120 basis points versus prior year. Inventory: Ended the first quarter with total inventory up 7% compared to the prior year. Store Openings and Closures: Opened 13 new North American stores and closed 8 stores; internationally, opened 14 new stores and closed 19 stores. International Sales: Grew approximately 10% in the quarter. Loyalty Program: Approximately 39 million active loyalty customers, up 4% compared to the prior year. Free Cash Flow: Expectations remain in the range of $750 million to $850 million for the year. Share Repurchases: Repurchased 4.3 million shares for $135 million at an average price of $31.24 per share. Warning! GuruFocus has detected 4 Warning Signs with BBWI. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bath & Body Works Inc (NYSE:BBWI) reported a 3% increase in net sales, reaching the high end of their guidance range. The company exceeded expectations with earnings per diluted share of $0.49, surpassing the high end of their range. The Disney collaboration was a significant success, exceeding expectations and driving strong consumer engagement. The loyalty program is performing well, with approximately 39 million active members, contributing to increased spend and trip frequency. International retail sales grew approximately 10% in the quarter, highlighting potential for further global expansion. Direct net sales decreased by 4.3% compared to last year, indicating challenges in the digital sales channel. The company faces tariff-related costs impacting inventory levels, which are expected to remain elevated in the first half of the year. SG&A expenses were slightly higher than expected due to incremental investments in marketing and store associate training. The candle market remains pressured, affecting growth in the Home Fragrance category. The company is still in the early stages of developing a clear strategy for international expansion and alternative distribution channels. Q: Daniel, what attracted you to Bath & Body Works, and what are your early observations about the company's opportunities and challenges? A: Daniel Heaf, CEO: I was drawn to Bath & Body Works because of its strong emotional connection with consumers and its robust business foundation, including 1,900 stores and 39 million loyalty members. My philosophy is to put the consumer at the center, creating innovative products and telling compelling brand stories. I see opportunities to consistently apply this philosophy to attract new consumers and accelerate growth. Q: Can you elaborate on the company's growth strategy and any investments required to achieve it? A: Daniel Heaf, CEO: Our strategy will focus on fewer, bolder priorities, targeting consistent and repeatable growth drivers. We will provide a clear roadmap and KPIs for tracking progress. Key areas include digital refresh, packaging, alternative distribution, and international expansion. We aim to grow both the top and bottom lines simultaneously, focusing investments on the greatest opportunities. Q: What are your plans for marketing and international expansion? A: Daniel Heaf, CEO: We aim to connect more emotionally with consumers, focusing less on price and more on compelling stories. Internationally, we see significant growth opportunities and will prioritize markets with the right business models. We plan to explore new distribution channels to reach new consumers. Q: How do you view the potential for growth in the Home Fragrance and Body Care categories? A: Eva Boratto, CFO: We expect Body Care to grow more than low single digits over time, aligning with market growth. The candle market is currently pressured, but we are innovating to drive growth in Home Fragrance. Gifting has shown strong growth, reinforcing our position as a gifting destination year-round. Q: How are you approaching capital allocation and the balance between returning capital to shareholders and funding growth initiatives? A: Daniel Heaf, CEO: It's early days, but my focus is on ensuring current investments are directed towards priority growth areas. We will work with the Board to evaluate capital allocation strategies, balancing shareholder returns with funding for strategic growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
