Bath & Body Works Inc. (BBWI) shares plummeted 13.05% in premarket trading on Thursday, as the retailer's weak annual guidance overshadowed better-than-expected fourth-quarter results.

For fiscal 2025, the company forecasted net sales growth of just 1% to 3%, largely trailing analysts' estimates for a 2.8% rise. BBWI also expects full-year earnings per share (EPS) of $3.25 to $3.60, compared with consensus expectations of $3.62. The tepid outlook reflects the anticipated impact of recently enacted U.S. tariffs on Chinese imports, as well as weakening consumer spending amid economic uncertainty.

However, in the fourth quarter of fiscal 2024, BBWI reported an adjusted EPS of $2.09, surpassing estimates of $2.04. Revenue for the quarter came in at $2.79 billion, narrowly beating forecasts of $2.78 billion. The company attributed the solid performance to its marketing efforts and promotions targeted at younger consumers. Separately, BBWI announced a new $500 million share repurchase program.