Bath & Body Works Inc. (BBWI) shares plummeted 5.79% in premarket trading on Thursday, as the retailer of fragrances and scented candles forecasted weaker-than-expected annual results, bracing for the impact of U.S. tariffs on Chinese imports and soft consumer spending.
The company forecasted fiscal 2025 net sales growth of 1% to 3%, largely below analysts' estimates for a 2.8% rise. It also expects full-year 2025 earnings per share (EPS) of $3.25 to $3.60, compared with expectations of $3.62.
Despite the tepid annual guidance, Bath & Body Works reported better-than-expected results for the fourth quarter of fiscal 2024. The company posted an adjusted EPS of $2.09, beating the consensus estimate of $2.04, while revenue of $2.79 billion narrowly topped expectations of $2.78 billion.
Separately, Bath & Body Works announced a share repurchase program of up to $500 million.