By
Reuters
Published
February 27, 2025
Bath & Body Works forecast annual sales and profit below expectations on Thursday, bracing for the impact of U.S. tariffs on Chinese imports as well as weak consumer spending on its fragrances and scented candles.
Shares of the Ohio-based company fell 4% in premarket trading.
High interest rates, economic uncertainty and years of elevated inflation have prompted Americans to tighten their purse strings. Retail sales in the U.S. dropped the most in nearly two years in January.
Customers are also switching to cheaper, private-label alternatives.
Bath & Body Works forecast fiscal 2025 net sales growth of to 1% to 3%, largely below analysts’ estimates for a 2.8% rise, according to data compiled by LSEG.
It expects full-year 2025 earnings per share of $3.25 to $3.60, compared with expectations of $3.62.
The forecasts reflect the impact of recently enacted U.S. tariffs on goods imported from China but excludes potential impacts from other possible tariff changes, the company said.
Still, the company’s holiday-quarter results beat estimates thanks to marketing and promotion efforts targeted at attracting younger consumers.
On an adjusted basis, Bath & Body Works posted a profit of $2.09 per share for the quarter ended February 3, compared with estimates of $2.05 per share.
Its third-quarter sales fell 4.3% to $2.79 billion from a year ago, narrowly beating estimates of $2.78 billion.
Separately, the company announced a share repurchase program of up to $500 million.
© Thomson Reuters 2025 All rights reserved.
SelectFashion, the popular women's fashion retailer known for its affordable, trendy clothing, is set to close 35 stores within days, following a series of clo
One ranged from a gilded embassy or under the Louvre to an elegant br
Ms Rule is a special educational needs coordinator at Douay Martyrs Catholic Secondary School in Hillingdon but works on her business in the evenings and at wee
British fashion is under threat from artificial intelligence that can identify popular products and flood the market with cheap copies, designers have warned.Fu