Bath & Body Works (BBWI) Announces 2025 Second Quarter Earnings Results And Updates Fiscal Year 2025 Guidance

Bath & Body Works, Inc. (BBWI) today announced its financial results for the most recent quarter, reporting revenue of $1.549 billion. The company met expectations for both revenue and earnings per share, reflecting a stable performance in a competitive retail environment. As consumers continue to seek out personal care and home fragrance products, Bath & Body Works remains well-positioned to capitalize on these trends.

Key Highlights:

• Second quarter net sales increased by 1.5% to $1.5 billion, at the high end of the guidance range.
• Earnings per diluted share were $0.30; adjusted earnings per diluted share were $0.37, also at the high end of the guidance range.
• Full-year 2025 earnings per diluted share guidance raised to $3.28 to $3.53; adjusted earnings per diluted share guidance raised from $3.25 to $3.60 to $3.35 to $3.60.
• The company is focusing on three strategic initiatives: enhancing the digital experience, improving product efficacy, and expanding distribution.

In the second quarter of 2025, Bath & Body Works reported net sales of $1,549 million, reflecting a 1.5% increase from the previous year. CEO Daniel Heaf expressed satisfaction with the quarter’s performance, stating, “Our team delivered a solid quarter, with revenue and adjusted earnings per share at the high end of our guidance range.” He emphasized the company’s confidence in its outlook, leading to an adjustment in the earnings guidance for the year. The company is actively pursuing three strategic initiatives aimed at driving growth: enhancing the digital shopping experience, amplifying the effectiveness of their products, and expanding distribution channels to better meet consumer needs.

Looking ahead, Bath & Body Works has narrowed its full-year 2025 net sales growth guidance to between 1.5% and 2.7%. The company anticipates earnings per diluted share to be between $3.28 and $3.53, compared to $3.61 in fiscal 2024. Additionally, the company plans to deploy $400 million towards share repurchases, an increase from the previous expectation of $300 million, while still expecting to generate free cash flow of $750 million to $850 million for the year.

Bath & Body Works, Inc. (BBWI) has experienced a notable price surge of 7.21% over the past week, signaling a potential rebound in investor sentiment. However, this recent uptick comes on the heels of a more challenging six-month period, where the stock price fell by 10.77%. Despite the volatility, BBWI’s price-to-earnings ratio stands at a compelling 8.50, suggesting that the stock may be undervalued relative to its earnings potential. The company boasts an impressive two-year compound annual growth rate (CAGR) for earnings per share at 52.48%, indicating strong profitability trends. Yet, the revenue CAGR has been negative at -1.06%, raising concerns about top-line growth. Additionally, the return on invested capital is robust at 37.31%, reflecting efficient capital utilization. With a net profit margin of 10.04%, BBWI demonstrates solid profitability, but the declining revenue metrics could pose challenges ahead. Investors will be keen to see if the recent price momentum can translate into sustained growth as the company navigates its financial landscape.

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company sells its products under the Bath & Body Works, White Barn, and other brand names through specialty retail stores and websites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. As of January 29, 2022, it operated 1,755 company-operated retail stores and 338 international partner-operated stores. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.