BBWI Stock Forecast & Price Target

Bath & Body Works is demonstrating a robust growth trajectory with anticipated net sales growth of 1%-3% year-over-year for fiscal 2025, building upon last year's sales of $7.307 billion. The company also reported an expansion in gross margin of 80 basis points to 46.7%, surpassing both its own guidance and market expectations, which indicates effective cost management and pricing strategies. Additionally, the active membership base rose by 6% year-over-year to 39 million, driving increased engagement and purchase behavior, further strengthening the brand's market position.

Bath & Body Works experienced a notable decline in direct revenues, dropping 9.4% year-over-year to $595 million in the fourth quarter, following previous declines and contrasting with past growth. Additionally, segment sales fell 2.4% year-over-year to $2.109 billion, which reflects a significant slowdown compared to the growth observed in the previous quarter and the same period last year. The company's guidance for fiscal year 2025 also projects a decrease in earnings per share, with the estimate revised down to $3.58, falling short of the prior consensus.