BBWI Stock Forecast & Price Target

Bath & Body Works is projected to achieve net sales growth of 1%-3% year-over-year for fiscal year 2025, slightly surpassing prior consensus estimates of 2.8%, with revenue expected to reach $7.517 billion. The company reported a gross margin expansion of 80 basis points to 46.7%, which exceeded both its guidance and market expectations, indicating improved operational efficiency. Additionally, an increase in active membership by 6% year-over-year to 39 million, along with strong demand for specific product categories, underscores a solid consumer connection and positive momentum for future performance.

Bath & Body Works reported a significant decline in direct revenues, dropping 9.4% year-over-year in the fourth quarter, contributing to an overall segment sales decline of 2.4% to $2.109 billion. The company's diluted earnings per share (EPS) guidance for the first quarter was set at $0.36-$0.43, which is slightly below previous consensus expectations, indicating potential challenges in meeting market forecasts. Additionally, both international sales and mix-adjusted average unit retail prices decreased, reflecting adverse consumer behavior and economic pressures that may hinder future growth prospects.