Yesterday, Bath & Body Works released its financial report for the fourth quarter and full year of 2024. The report revealed that the company’s net sales for the 13-week fourth fiscal quarter ending February 1, 2025, were $2.788 billion, a 4.3% decrease compared to the 14-week fourth fiscal quarter ending February 3, 2024, which had net sales of $2.912 billion.
For the 52-week fiscal year ending February 1, 2025, net sales totaled $7.307 billion, a 1.6% decline from the $7.429 billion recorded in the 53-week fiscal year ending February 3, 2024.
For fiscal 2025, Bath & Body Works is forecasting net sales growth of just 1% to 3%, lower than analysts’ expectations of a 2.8% increase. The company also expects full-year earnings per share to range from $3.25 to $3.60, below the anticipated $3.62.
According to the financial report, Bath & Body Works operated 1,895 company-owned stores globally in 2024, an increase of 45 stores compared to the previous year. The total number of global franchised stores reached 529, which is 44 more than the previous year.
The company’s forecasted annual sales and profit figures are below market expectations, driven by concerns over the impact of U.S. tariffs on Chinese imports and weak consumer spending, particularly in the fragrance and scented candle categories. Following the announcement, the Ohio-based retailer’s stock dropped 4% in premarket trading.
The company is preparing for challenges stemming from high interest rates, economic uncertainty, and long-term inflationary pressures, all of which have led U.S. consumers to curb their spending. Retail sales in the U.S. dropped the most in nearly two years in January, signaling increasingly cautious consumer behavior. Many customers are also turning to lower-cost private-label products, further affecting the brand’s performance.
