Bath & Body Works Q1 Beats, Heaf Named CEO

Bath & Body Works reported first-quarter 2025 results with revenue rising 2.9% to $1.42 billion and earnings per share increasing 29% to $0.49, exceeding analyst expectations. The company noted improved gross and operating margins, and operating cash flow more than doubled from the prior year. Despite strong financial results, Bath & Body Works' stock has underperformed the broader market in 2025. The company provided Q2 revenue guidance slightly below analyst estimates but reaffirmed its full-year outlook, projecting net sales growth of 1% to 3% and EPS between $3.25 and $3.60, considering current tariffs and planned share buybacks. Daniel Heaf was appointed CEO effective May 16, 2025, and leadership expressed optimism about global growth and innovation. Strong performance was attributed to successful product launches and effective supply chain management amid trade challenges.