BBWI Stock Forecast & Price Target

Bath & Body Works is projecting net sales growth of 1%-3% year-over-year for fiscal 2025, exceeding previous consensus estimates and reflecting resilience in consumer demand. The company's gross margin expanded by 80 basis points to 46.7%, demonstrating operational efficiency that surpassed both internal guidance and market expectations. Additionally, with 39 million active loyalty program members—up 6% year-over-year—there is a notable increase in reward redemptions, which is likely to drive higher purchases and enhance brand loyalty moving forward.

Bath & Body Works has demonstrated a concerning financial trend, with total segment sales declining 2.4% year-over-year to $2.109 billion, contrasting starkly with the previous quarter's growth of 4.5%. Direct revenues have also decreased by 9.4% year-over-year, totaling $595 million, following a growth of 1.3% in the previous quarter, indicating potential issues in consumer demand. Additionally, the company's guidance for the first quarter EPS of $0.36-$0.43 is below the prior consensus of $0.44, further contributing to a downward adjustment in the FY25 EPS estimate from $3.66 to $3.58.