BBWI Stock Forecast & Price Target

Bath & Body Works, Inc. is projecting a year-over-year sales increase of 1.5% to 2.7% for fiscal 2024, reflecting a robust strategy aimed at elevating its digital sales penetration beyond 20% as it seeks to expand its customer base. The company's international sales have shown a positive trend, increasing by 6.1% year-over-year to $73 million, which signifies potential resilience in global markets following previous declines. Additionally, the retailer's strong focus on enhancing its real estate portfolio, transitioning toward off-mall locations that now comprise 59% of its store fleet, supports a foundation for long-term growth and profitability through improved customer accessibility and store performance.

Bath & Body Works has revised its annual guidance, now projecting a low-single digit decline in net sales for fiscal 2025, down from earlier expectations of modest sales growth. The company's Q4 sales outlook anticipates a high-single digit year-over-year decrease, significantly lower than prior consensus estimates, driven by persistent weakness in consumer demand and macroeconomic pressures. Additionally, the reduction in full-year earnings per share guidance to at least $2.87, well below previous expectations of $3.35-$3.60, underscores ongoing challenges in revenue generation and profitability.