Bath & Body Works has posted stronger-than-expected results for the first quarter of fiscal 2025, fueled by sustained consumer demand and continued product innovation.
The company also provided a cautious yet optimistic outlook for the second quarter, while noting a modest impact from a recent leadership change.
For the quarter ending May 3, the company reported net sales of $1.424 billion, a 2.9 per cent increase from the $1.384 billion recorded during the same period last year. Operating income rose to $209 million, up from $187 million, while net income climbed to $105 million, compared to 87 million in the prior-year quarter.
Bath & Body Works attributed the solid performance to a combination of compelling new product offerings and the strategic advantage of a primarily US-based supply chain, which helped insulate the business from tariff pressures.
“I’m confident in our ability to adapt to meet the consumer where they are with fragrance innovation and high-quality products at compelling price points as we move through 2025,” said Eva Boratto, CFO of Bath & Body Works.
Looking ahead, the company expects the second-quarter net sales to be flat or rise by up to 2 per cent, compared to $1.526 billion in the second quarter of 2024. However, Bath & Body Works says that its recent CEO transition may have a slight short-term impact on profitability.
Earlier this month, Daniel Heaf officially took over as CEO, succeeding Gina Boswell.
“Although there has been a change in management at the company, Gina Boswell handed over the firm in good health,” commented Neil Saunders, MD of GlobalData.
“And her successor, Daniel Heaf, has a very good retail skillset. Pleasingly, he seems to have started his tenure by listening to employees across the organization, which we believe is a very good sign that management will continue its customer and employee-centric culture.”
