Yesterday, Bath & Body Works, Inc. posted its second-quarter 2025 results, reporting steady performance despite ongoing consumer and macroeconomic pressures. Net sales for the quarter ended August 2, 2025, rose 1.5% year-over-year to $1.55 billion, in line with analyst expectations. Adjusted earnings per share came in at $0.37, just shy of the $0.38 consensus forecast compiled by LSEG.
CEO Daniel Heaf credited the company’s resilience to strategic initiatives focused on elevating the digital experience, strengthening product efficacy, and expanding distribution. “Our team delivered a solid quarter, with revenue and adjusted earnings per share at the high end of our guidance range,” Heaf said, noting the company’s confidence in its long-term growth trajectory.
Bath & Body Works narrowed its full-year 2025 net sales growth forecast to 1.5%–2.7%, compared with $7.31 billion in fiscal 2024. The company also adjusted its full-year earnings outlook, now expecting diluted earnings per share of $3.28–$3.53, versus $3.61 in 2024. Adjusted profit per share guidance was refined to $3.35–$3.60 to account for current tariff rates.
Although higher-priced offerings such as fragrances and candles are facing pressure from inflation-weary consumers, the company is leaning into its positioning as an “affordable luxury.” Initiatives include ramped-up marketing, promotions, and new seasonal launches like a Disney villains-themed Halloween collection and ceramic scented candles.
Operating costs increased, with general, administrative, and store expenses climbing 9% to $483 million during the quarter. Still, Bath & Body Works remains better insulated from tariffs than many competitors, sourcing most of its merchandise locally. As of February, about 10% of its supply came from China, while Canada and Mexico combined accounted for 7%.
Looking ahead, the company sees opportunities in enhancing customer engagement and driving sales through strategic investments, even as U.S. consumer spending faces headwinds from a softening labor market and elevated goods prices.
