Bath & Body Works Q4 Beats Market, Sees Q1, FY25 EPS Below Street; Plans $500 Mln Buyback - Update

Bath & Body Works

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(RTTNews) - Personal care and home fragrance firm Bath & Body Works, Inc. (BBWI), while reporting weak profit and revenues, but above market estimates, on Thursday issued outlook for first quarter and fiscal 2025, expecting earnings below market estimates. Further, the Board of Directors authorized new $500 million share repurchase program.

In pre-market activity on the NYSE, Bath & Body Works shares were losing around 2.2 percent to trade at $40.18.

For the first quarter, the company expects earnings per share to be between $0.36 and $0.43, compared to $0.38 in the first quarter of 2024. Net sales would grow between 1 percent to 3 percent compared to $1.38 billion last year.

The Wall Street analysts, on average, expect earnings of $0.44 per share for the first quarter. Analysts' estimates typically exclude special items.

Further, for fiscal 2025, earnings per share are expected to be between $3.25 and $3.60, compared to prior year's $3.61 on a reported basis and $3.29 on an adjusted basis. The Street is looking for earnings of $3.65 per share for the year.

The company is forecasting net sales to grow between 1 percent to 3 percent compared to $7.31 billion in fiscal 2024.

Bath & Body Works also announced that the Board of Directors approved a new share repurchase program authorizing the company to repurchase up to $500 million of the companys outstanding shares of common stock, which replaced the approximately $120 million remaining authority under the January 2024 program.

In its fourth quarter, Bath & Body Works' net earnings totaled $453 million or $2.09 per share, compared with $579 million or $2.55 per share last year.

Adjusted earnings were $453 million or $2.09 per share for the period. Analysts had expected the company to earn $2.04 per share.

The company's revenue for the 13-week quarter fell 4.3 percent to $2.79 billion from $2.91 billion in the 14-week quarter last year. The Street expected revenues of $2.78 billion for the quarter.

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