BBWI Stock Forecast & Price Target

Bath & Body Works has narrowed its annual guidance, expecting sales growth between 1.5% to 2.7% year-over-year, reflecting a stable consumer shopping pattern amidst evolving retail dynamics. The company has observed a 6.1% year-over-year increase in international sales, demonstrating a recovery from prior declines, while segment sales remained flat, suggesting steady demand in its core markets. Additionally, investment in infrastructure and a strategic focus on off-mall locations, comprising approximately 59% of its real estate portfolio, indicate a robust foundation for future growth and profitability.

Bath & Body Works has revised its annual guidance for fiscal 2025 to anticipate a low-single-digit decline in net sales, significantly contrasting with previous expectations of growth. The company's recent performance revealed a 1.0% year-over-year decline in revenue to $1.594 billion for Q3, falling short of both internal estimates and consensus expectations. Additionally, the adjusted EPS guidance was lowered to at least $2.87, marking a notable decrease from the prior range of $3.35-$3.60 and highlighting the impact of weaker sales and increased gross margin pressure.