Bath & Body Works Faces Challenges, Approves Buyback

Bath & Body Works Inc reported a 4.3% decline in fourth-quarter sales to $2.788 billion, slightly beating analyst expectations of $2.777 billion. Despite the drop, the company exceeded earnings estimates with an adjusted EPS of $2.09 compared to the expected $2.05. The company is facing challenges such as U.S. tariffs on Chinese imports and reduced consumer spending, which have led to cautious fiscal 2025 guidance, projecting 1% to 3% net sales growth. The Board has approved a $500 million share repurchase program to replace the existing program. CEO Gina Boswell emphasized their strong performance through product innovation and marketing strategies, despite broader economic challenges. The stock saw a decline in pre-market trading due to the underwhelming outlook.