Bath and Body Works Reports Positive Start to 2025 with Q1 Revenue Growth and CEO Transition

Bath and Body Works Inc. has reported a strong start to 2025, with first-quarter net sales rising by 2.9% to $1.42 billion. Earnings per diluted share surged by 29% to $0.49, exceeding the company’s earlier guidance projections.

This growth was largely attributed to innovative product offerings that resonated with customers. “Our results highlight the strength of our predominantly U.S.-based supply chain and our ability to meet consumer needs through fragrance innovation and quality products at competitive price points,” said CFO Eva Boratto. 

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Leadership Update

Signaling a strategic shift, Bath and Body Works also confirmed Daniel Heaf as its new Chief Executive Officer, effective May 16, 2025. Heaf aims to capitalize on the company’s strong foundation, stating, “We are uniquely positioned to lead the home fragrance and beauty categories globally while accelerating growth.”

Fiscal Year Guidance Maintained

Looking ahead, Bath and Body Works has upheld its fiscal guidance for 2025, forecasting net sales growth of 1% to 3%. Earnings per diluted share are expected to range between $3.25 and $3.60. The guidance includes the effects of current tariffs and a $300 million share repurchase program. The company also projects free cash flow for the year to be between $750 million and $850 million.

Strong Q1 Financial Highlights:

• Net Income: $105 million, up from $87 million in Q1 2024.
• Operating Income: $209 million, a significant year-over-year increase from $187 million.
• Store Performance:
• U.S. and Canada stores saw a 4.3% sales increase.
• International sales grew by 10.1%, driven by franchised store operations.

Regional and Product Dynamics

Bath and Body Works continues to leverage its agility and innovation in meeting market trends. U.S. and Canada store sales were bolstered by fulfilled “buy online, pick up in store” orders, while international partnerships contributed to a strong global footprint. However, there was a slight decline of 4.3% in direct sales. This reflects shifting consumer dynamics and preferences, which the company may look to address through upcoming adjustments.

Outlook and Challenges

While the company expressed confidence in its growth strategy, the ongoing CEO transition and international market dynamics are expected to temporarily weigh on earnings in Q2 2025. Second-quarter sales are forecasted to be flat to up 2% year-over-year, with earnings per diluted share anticipated to range between $0.33 and $0.38.

The positive first-quarter results and strategic leadership changes underscore Bath and Body Works’ resilience and ability to drive long-term growth in a rapidly evolving retail environment.