BBWI Stock Forecast & Price Target

Bath & Body Works has narrowed its annual sales guidance for fiscal 2024, projecting an increase between 1.5%-2.7% year-over-year, indicating a more optimistic outlook despite a prior expectation of lower sales for the year. The company achieved a notable 6.1% year-over-year increase in international sales, reflecting a recovery from prior declines and demonstrating potential for further growth in this segment. Additionally, strategic investments in infrastructure, a successful loyalty program, and a shift towards off-mall retail locations are expected to enhance profitability and drive future sales growth.

Bath & Body Works has revised its annual guidance downward, now projecting a low-single digit decline in net sales for FY25, which is a significant shift from the previous expectation of growth. The company reported a year-over-year sales decline of 1.0% for the latest quarter, falling short of internal and consensus estimates, indicating persistent weakness in consumer demand. Additionally, the reduced earnings per share guidance, now set at a minimum of $2.87 compared to the prior range of $3.35-$3.60, underscores growing pressures on profitability and sales amid a challenging macroeconomic environment.