BBWI Stock Forecast & Price Target

Bath & Body Works is projecting net sales growth of 1%-3% for fiscal year 2025, slightly surpassing the previous consensus estimate of 2.8% growth, with anticipated total revenues rising to approximately $7.517 billion. The company has demonstrated solid operational efficiency, with a quarter-over-quarter operating margin improvement of 40 basis points to 24.3%, exceeding market expectations. Additionally, significant customer engagement is reflected in the growth of active loyalty program members by 6% year-over-year, which is contributing to increased purchase rates and brand loyalty.

Bath & Body Works experienced a decline in direct revenues of 9.4% year-over-year in the fourth quarter, totaling $595 million, following an increase of 1.3% in the previous quarter and an 8.3% decline from the same period last year. Segment sales for the period decreased by 2.4% year-over-year to $2.109 billion, contrasting with a growth rate of 4.5% in the preceding quarter and a 4.0% gain recorded in fourth quarter 2023. Additionally, the company's fiscal year 2025 EPS estimate was revised down to $3.58 from a previous $3.66, indicating a deterioration in earnings expectations amid a challenging retail environment.