BBWI Stock Forecast & Price Target

Bath & Body Works has narrowed its annual sales guidance for fiscal 2024, suggesting a modest year-over-year increase of 1.5%-2.7% in sales, with total segment sales remaining flat but stable at approximately $1.222 billion. The company is positioning itself for long-term growth through enhanced digital penetration, aiming to exceed the current ~20% level, alongside a strategic focus on upgrading store layouts and expanding into adjacent categories such as men's and lip products. International sales demonstrated a rebound, increasing by 6.1% year-over-year, which, coupled with successful loyalty program traction and improvements in operational efficiency, suggests that the company is establishing a solid foundation for future profitability.

Bath & Body Works has revised its annual guidance to reflect a low-single digit decline in net sales for FY25, significantly down from the previous forecast of a growth range between 1.5%-2.7% Year-over-Year (YoY). The company also anticipates a high-single digit decline in Q4 sales, with guidance of $1.594 billion well below consensus expectations, highlighting a consistent pattern of weaker sales and increased pressure on gross margins. Additionally, the reduction in full-year earnings per share (EPS) guidance to at least $2.87 from a previous range of $3.35-$3.60 raises concerns about the company’s financial performance amid challenging consumer sentiment and a lack of robust growth catalysts.