BBWI Stock Forecast & Price Target

Bath & Body Works has narrowed its fiscal 2024 annual sales guidance to an increase of 1.5% to 2.7% year-over-year, reflecting stable consumer shopping patterns and enhancements in their retail strategy. The company experienced a notable 6.1% year-over-year increase in international sales, indicating potential for future expansion in markets outside North America. Furthermore, with improvements in digital penetration and a growing loyalty program, Bath & Body Works is poised to capitalize on operational efficiencies and strategic initiatives that could bolster long-term growth and profitability.

Bath & Body Works has issued a negative outlook for fiscal year 2025, anticipating a low-single digit decline in net sales, a significant downgrade from previous guidance that expected modest growth. The company's fiscal performance is reflected in Q3 results, where sales declined by 1.0% year-over-year to $1.594 billion, falling short of analyst expectations and the company’s prior growth estimates. Additionally, the lowered full-year earnings per share guidance of at least $2.87 represents a substantial decrease from the previous estimate of $3.35-$3.60, further indicating ongoing challenges in both sales performance and consumer sentiment.