BBWI Stock Forecast & Price Target

Bath & Body Works demonstrated a solid financial performance with a gross margin expansion of 80 basis points to 46.7% in the fourth quarter, surpassing both company guidance and consensus estimates. The company also reported an increase in active members to 39 million, which is up 6% year-over-year, indicating strong customer engagement and higher purchase motivation tied to a growing rewards program. For fiscal year 2025, Bath & Body Works projects net sales growth of 1%-3%, exceeding previous consensus estimates, with an anticipated total revenue of approximately $7.517 billion, marking a 2.9% increase year-over-year.

Bath & Body Works's financial performance for the fourth quarter indicates persistent challenges, with direct revenues dropping 9.4% year-over-year to $595 million, following an already declining trend from the previous year. Additionally, segment sales decreased by 2.4% year-over-year to $2.109 billion, contrasting sharply with the previous quarter's growth and raising concerns about the company's overall sales trajectory. The guidance for fiscal year 2025 reflects further negativity, with the estimated earnings per share decreasing from $3.66 to $3.58, suggesting ongoing difficulties in achieving revenue stability.