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Released on: February 27, 2025
11:24 AM Eastern Standard Time
Essential Insights
- The Bath and Body Care Firm has indicated that tariffs on imports from China will adversely impact its yearly results.
- CEO Gina Boswell highlighted that the retail industry is encountering intricate challenges.
- The company’s forecast overshadowed stronger-than-anticipated profits and sales in the fourth quarter.
The Bath and Body Care Firm (BBWI) experienced a 10% drop in its stock on Thursday as the personal care and home fragrance retailer warned that new tariffs and sluggish consumer spending would affect its future results.
The firm anticipates its full-year earnings per share (EPS) to fall between $3.25 and $3.60, with net sales growth estimated at 1% to 3%. Analysts surveyed by Visible Alpha had predicted an EPS of $3.66 and a sales increase of 3.02%.
The Bath and Body Care Firm pointed out that this forecast reflects the recent effects of tariffs on imports from China and does not consider possible impacts from other tariff adjustments.
Fourth Quarter Results Surpass Projections
This outlook overshadowed a robust fourth-quarter performance. The Bath and Body Care Firm reported an EPS of $2.09, with sales hitting $2.79 billion, which, despite a drop of over 4%, still exceeded expectations.
CEO Gina Boswell remarked that despite the intricate challenges confronting the retail sector, our performance in the latter half of the year remains strong.
Throughout the past year, the Bath and Body Care Firm’s stock has diminished by over 20% of its worth.
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