“`html
Bath & Body Works (BBWI) reported disappointing third-quarter fiscal 2025 results on October 3, 2023, with adjusted earnings of 35 cents per share, down from 49 cents the previous year and below the consensus estimate of 40 cents. Net sales fell by 1% year-over-year to $1.594 billion, also missing expectations of $1.627 billion. The poor performance led to a near 25% plunge in stock price, which has decreased 52% over the last three months.
Management has adjusted its outlook for fiscal 2025, now expecting net sales to decline low single digits compared to $7.307 billion in 2024, and predicts adjusted earnings per share of at least $2.87, down from $3.29 in 2024. Factors impacting performance include macro consumer pressures and tariff challenges. The company ended the quarter with a long-term debt of $3.89 billion and cash equivalents of $236 million.
Despite the current challenges, BBWI has launched a transformation strategy aimed at enhancing brand engagement and operational efficiency to attract younger consumers. The company plans to continue expanding its store presence internationally, with at least 30 net new store openings anticipated by the end of fiscal 2025.
“`
