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Bath & Body Works, Inc. (NYSE: BBWI) reported its financial outcomes for the fourth quarter of fiscal 2024, showcasing a solid performance despite calendar shifts.

The company achieved net sales of $2.8 billion, a slight decline from $2.912 billion during the same period last year. This drop of 4.3% was primarily attributed to the fiscal calendar adjustment, which accounted for a 500-basis-point headwind due to an extra week in 2023. Nevertheless, the fourth quarter earnings per diluted share stood at $2.09, surpassing the previous guidance and demonstrating robust operational execution.

The company’s fourth-quarter performance was bolstered by strong customer traffic and conversion rates, building upon the momentum from the third quarter. CEO Gina Boswell credited the success to product innovation, strategic marketing, and exceptional customer experiences provided by their associates.

Despite the challenges posed by the broader retail sector, Bath & Body Works managed to maintain a positive trajectory, ending the second half of the fiscal year on a strong note. Operating income for the quarter was reported at $678 million, compared to $696 million in the prior year, while net income reached $453 million, down from $579 million. The company did not report any significant adjustments in the fourth quarter of 2024, contrasting with the previous year’s adjustments that included tax benefits and impairment charges.
 

Bath & Body Works Reports Double Beat in Fourth Quarter

Bath & Body Works exceeded market expectations in the fourth quarter, delivering earnings per share (EPS) of $2.09 against the anticipated $2.04. The actual net sales of $2.8 billion also aligned closely with the market forecast of $2.78 billion, underscoring the company’s ability to meet and slightly surpass financial projections.

The company’s ability to outperform expectations is attributed to its focus on product innovation and expansion into new categories and international markets. By extending its reach and enhancing its marketing strategies, Bath & Body Works has managed to maintain a competitive edge in a challenging retail environment. The company’s strategic initiatives have not only driven sales but also contributed to a favorable customer experience, which is pivotal in sustaining long-term growth.

Despite the challenges posed by a shorter fiscal quarter, the company’s results demonstrate its capability to adapt and thrive. The alignment of actual results with market expectations highlights Bath & Body Works’ strategic foresight and operational efficiency, reinforcing investor confidence in its future prospects.
 

Bath & Body Works Expects Net Sales Growth Between 1%-3% in Fiscal 2025

Looking ahead to fiscal 2025, Bath & Body Works has provided a cautiously optimistic outlook. The company forecasts net sales growth between 1% and 3% compared to fiscal 2024, indicating a steady expansion trajectory. Earnings per diluted share for the full year are expected to range from $3.25 to $3.60, slightly below the $3.61 reported in 2024 but in line with adjusted EPS of $3.29.

The company’s guidance reflects anticipated impacts from recently enacted tariffs on Chinese imports and excludes potential effects from other tariff changes. This cautious approach underscores the company’s awareness of external economic factors and its commitment to navigating these challenges effectively. Additionally, Bath & Body Works plans to deploy approximately $300 million towards share repurchases, further enhancing shareholder value.

For the first quarter of 2025, the company anticipates net sales growth of 1% to 3%, with earnings per diluted share projected between $0.36 and $0.43. This guidance reflects the company’s strategic initiatives and market conditions, positioning it for continued growth in the coming fiscal year. Bath & Body Works remains focused on leveraging its strengths in product innovation and customer engagement to drive future success.

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