Bath & Body Works Surpasses Estimates and Raises Outlook Amid Strong Customer Engagement

Key Highlights

Bath & Body Works exceeded quarterly earnings expectations, driven by robust store traffic and a growing loyalty program.

The company raised its full-year guidance, anticipating strong performance during the upcoming holiday season.

Its predominantly U.S.-based supply chain provided a competitive edge in navigating supply chain challenges.

Bath & Body Works (BBWI) shares surged as the retailer reported impressive third-quarter results, underpinned by increased customer loyalty and strong sales across key product categories. 

The company also revised its full-year outlook upward, signaling confidence in its ability to capitalize on the busy holiday shopping period.

For the third quarter, Bath & Body Works posted an adjusted earnings per share (EPS) of $0.49, surpassing expectations. Revenue grew by 3.1%, reaching $1.61 billion, outperforming analyst projections.

Sales of core product lines, including home fragrance, body care, and soap and sanitizers, saw low-single-digit percentage increases. The loyalty program continued to drive performance, with active membership climbing 4% from the prior quarter to approximately 38 million. Notably, loyalty members accounted for more than 80% of the retailer's U.S. sales, highlighting their significant contribution to revenue growth.

Strong Operational Strategy

CEO Gina Boswell emphasized the company’s ability to adapt to the shifting retail environment, leveraging its flexible business model and domestically centered supply chain. She remarked, “We are well-positioned to navigate a volatile retail environment and shorter holiday calendar.”

Upgraded Full-Year Guidance

Building on its strong performance, Bath & Body Works increased its full-year adjusted EPS projection to a range of $3.15 to $3.28, compared to its prior estimate of $3.06 to $3.26. The company now anticipates a smaller decline in revenue, expecting a decrease of 1.7% to 2.5%, an improvement from the previous forecast of a 2.0% to 4.0% drop.

Stock Performance

While the announcement boosted the company's shares, Bath & Body Works’ stock remains down year-to-date, reflecting broader challenges in the retail sector.

Key Highlights

Bath & Body Works exceeded quarterly earnings expectations, driven by robust store traffic and a growing loyalty program.

The company raised its full-year guidance, anticipating strong performance during the upcoming holiday season.

Its predominantly U.S.-based supply chain provided a competitive edge in navigating supply chain challenges.

Bath & Body Works (BBWI) shares surged as the retailer reported impressive third-quarter results, underpinned by increased customer loyalty and strong sales across key product categories. 

The company also revised its full-year outlook upward, signaling confidence in its ability to capitalize on the busy holiday shopping period.

For the third quarter, Bath & Body Works posted an adjusted earnings per share (EPS) of $0.49, surpassing expectations. Revenue grew by 3.1%, reaching $1.61 billion, outperforming analyst projections.

Sales of core product lines, including home fragrance, body care, and soap and sanitizers, saw low-single-digit percentage increases. The loyalty program continued to drive performance, with active membership climbing 4% from the prior quarter to approximately 38 million. Notably, loyalty members accounted for more than 80% of the retailer's U.S. sales, highlighting their significant contribution to revenue growth.

Strong Operational Strategy

CEO Gina Boswell emphasized the company’s ability to adapt to the shifting retail environment, leveraging its flexible business model and domestically centered supply chain. She remarked, “We are well-positioned to navigate a volatile retail environment and shorter holiday calendar.”

Upgraded Full-Year Guidance

Building on its strong performance, Bath & Body Works increased its full-year adjusted EPS projection to a range of $3.15 to $3.28, compared to its prior estimate of $3.06 to $3.26. The company now anticipates a smaller decline in revenue, expecting a decrease of 1.7% to 2.5%, an improvement from the previous forecast of a 2.0% to 4.0% drop.

Stock Performance

While the announcement boosted the company's shares, Bath & Body Works’ stock remains down year-to-date, reflecting broader challenges in the retail sector.