BBWI Stock Forecast & Price Target

Bath & Body Works has narrowed its fiscal 2024 sales guidance to a growth range of 1.5%-2.7% year-over-year, indicating a stable outlook despite some fluctuations in consumer behavior. The company has seen a notable increase in international sales, which grew by 6.1% year-over-year, signaling strength in its global market expansion efforts. Furthermore, significant investments in digital penetration and operational efficiencies, along with a strategic shift towards off-mall locations, are expected to enhance long-term profitability and growth potential.

Bath & Body Works has revised its fiscal 2025 guidance to reflect a low-single digit decline in net sales and adjusted earnings per share (EPS) projected at no more than $2.87, significantly lower than the previous range of $3.35-$3.60. The company has reported a 1.0% year-over-year topline decline to $1.594 billion, underperforming both its internal estimates and analyst consensus expectations. Additionally, fourth-quarter sales are expected to decrease by high-single digits year-over-year, which further exacerbates the concern over ongoing sales weakness and a negative macroeconomic environment impacting consumer spending.