Latest news with #Bath&BodyWorks
Yahoo
3 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
Business Insider
3 days ago
- Business
- Business Insider
Bath & Body Works is ready to go international after a bruising year saw its stock fall 40%
Bath & Body Works' new CEO is only 10 days into the job, but is already planning a major strategy shakeup. The home fragrance retailer reported a strong start to 2025, with net sales up 2.9% to $1.4 billion in the first quarter of 2025. Earnings per diluted share jumped 29% to $0.49, surpassing the firm's own projections. A new Disney collaboration leading to the launch of six Disney Princesses fragrances helped to boost earnings from the most recent period, Bath & Body Works said. In its statement, the company also introduced its new CEO, Daniel Heaf, who was previously Nike 's chief strategy and transformation officer and senior vice president at different departments in Burberry. Speaking about his plans for the Columbus-headquartered retailer just 10 days into the job, Heaf said the firm would be listening to customers to gather insights, using those insights to create products, sharing brand and product stories, and bringing all of that together in an integrated global marketplace. "Today, international represents about 5% of our business, but from my experience at both Nike and Burberry, I know that international growth is incremental," he told investors in the earnings call on Thursday. "It can define an era." "In the coming weeks, I'll be on the ground with our partners and customers internationally to explore how we scale effectively," Heaf said. Bath & Body Works has suffered a bruising year. Stock is down over 40% since the end of May 2024. Earlier this year, it forecast annual sales generally below predictions, citing uncertainty about President Donald Trump 's tariffs. Before that, when the company's market capitalization fell to about $6.6 billion in September, it was removed from the S&P 500, which at the time required a market cap of at least $18 billion. It was instead moved to the S&P SmallCap 600. "Bath & Body Works is no longer representative of the large-cap market space," the stock market index provider said in a statement. The beauty chain operates 1,900 stores in the US and Canada, and 524 international franchised locations. 14 new stores internationally were opened during the last quarter. 19 stores were closed, predominantly in the United States. "Our international expansion plans for 2025 remain on track with at least 30 planned net new store openings," Heaf said in the call. Eva Boratto, chief financial officer, said Bath & Body Works' guidance for this fiscal year includes the anticipated impact of tariffs and the predicted financial effects of the CEO transition. The company has maintained its guidance for 2025 of 1% to 3% growth in net sales.
Time of India
3 days ago
- Business
- Time of India
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 .
Time of India
3 days ago
- Business
- Time of India
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 .
The Irish Sun
3 days ago
- Entertainment
- The Irish Sun
I lived in America, here's why everyone there is obsessed with Bath & Body Works & the 5 best-sellers from £3
BATH & Body Works has been a scent staple in the US for decades and now the brand is expanding across the UK. After living in the states for five years, I can confirm the retail chain is all it is hyped up to be. 6 Bath & Body Works continues to expand across the UK, with the range now available from Next Credit: GETTY 6 Mahogany Teakwood proves to be a popular scent with customers, and has even been compared to the Noir Candle from The White Company Credit: Next From scented candles that won't break the bank to hand sanitisers that brightened up pandemic times, what's not to love? Nothing beats browsing the aisles of Bath & Body Works, picking out candle scents for your friends to guess and basking in the sweet scent of the shop. And now UK shoppers can jump on the fad with several locations across Britain as well as the official Bath & Body Works range also And if you're overwhelmed with the extensive selection of signature scents, long-time fans in the US have shared their personal favourites. Read More On Beauty Buys Jack Hegarty, who is based in New York, revealed his go-to candle buys from Bath & Body Works. "I think the Mahogany Teakwood smells like an expensive men's cologne," he told Fabulous. The scent features notes of rich mahogany, black teakwood, dark oak, and frosted lavender, providing a "sophisticated woodsy scent". It is comparable to the Most read in Fabulous This item is said to blend dark wood and cardamom to create a "luxurious fragrance". Jack added that the Eucalyptus Mint scent is another favourite of his as the candle creates a "really chill" atmosphere in his flat. Bath & Body Works trick for cheaper price Bath & Body Works' Meanwhile, a And the "really chill" selling point is confirmed as the item is advertised as helping with "stress relief". Carly Stern, another US-based Bath & Body Works shopper, agreed that the store's candles are a "real crowd favourite". "They have a bunch of fragrances that have become pretty iconic, and you can get the same scent in a ton of forms — candles, hand sanitisers, hand soaps, creams, room spray, diffusers," she said. And while she joked that the brand's hand sanitisers "have definitely had a moment", its the candles that remain a consistent favourite. Don't miss out... Visit The Sun's shopping beauty hub for more news, tips and beauty deals. For more discounts and recommendations from the Sun Shopping team, sign up to our newsletter and join the "Bath & Body Works fans can get kind of culty and obsessed and have these massive collections," Carly continued. She revealed her favourite scent is Champagne Toast, which she went on to describe as "really light, sweet, and fruity and one of the few candles I've bought multiple times". Black Cherry Merlot is another one of Carly's favourite scents from the brand. "It's a stronger smell but delicious, a nice cherry-raspberry combo," she said. "My other go-tos are Endless Summer, Pineapple Mango, and Frosted Cranberry in the winter." And its not just the classic scents that draw shoppers like Carly to the popular chain. "They also do a lot of special edition fragrances seasonally, and they're known for their sales," she told Fabulous. 6 The Bath & Body Works Clear Eucalyptus Spearmint candle is designed for stress relief Credit: Next 6 Bath & Body Works' hand sanitiser gels continue to be a best-seller years after the pandemic Credit: Next "People go crazy for Candle Day and stock up." She pointed out that a lot of the Bath & Body Works fragrances are also available under their White Barn line, with more "neutral and classy looking" packaging. One of Carly's favourite scents Black Merlot Cherry is also available as a best-selling Bath & Body Works are also known for their affordable sprays, available in all their signature scents. The highest-rated sprays among shoppers include Japanese Cherry Blossom, A Thousand Wishes, Gingham, Into The Night, and Warm Vanilla Sugar. You can pick up Bath & Body Works sprays as part of the And finally, the store's hand soaps are another way to introduce sweet scents into your home. Jack's favourite It's perfect for creating a calming spa-like experience in your home at a fraction of the price. 6 A Thousand Wishes Fine Fragrance Body Mist is one of the store's most popular items Credit: Next 6 The Bath & Body Works Eucalyptus Mint scent has been compared to a Molton Brown range Credit: Next
