BBWI Stock Forecast & Price Target

Bath & Body Works has narrowed its annual sales guidance, projecting an increase of 1.5%-2.7% year-over-year, indicating cautious optimism within a challenging retail environment. The company is experiencing a resurgence in international sales, which rose 6.1% year-over-year, contributing to an overall stability in their segment sales despite a flat quarterly performance. Strategic investments in digital channels, infrastructure, and loyalty programs, coupled with a successful shift towards off-mall locations, are expected to enhance the company's growth prospects and profitability moving forward.

Bath & Body Works revised its annual guidance to reflect a low-single digit decline in net sales for fiscal 2025, down from a prior outlook that anticipated growth. The company reported a year-over-year topline decline of 1.0%, significantly underperforming expectations and leading to a reduction in full-year earnings per share (EPS) guidance to at least $2.87, down from a previous range of $3.35 to $3.60. Additionally, Q4 sales guidance points to a high-single digit decrease year-over-year, indicating ongoing weakness in consumer demand and macroeconomic pressures that could adversely affect future performance.