Bath & Body Works (BBWI) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with net sales and EPS above guidance, driven by product innovation, collaborations, and international expansion despite a challenging retail environment and calendar shifts.

• Loyalty program membership grew 6% year-over-year, with over 80% of U.S. sales from loyalty members and record-high customer retention.

• Delivered $155M in incremental cost savings in 2024 and exceeded $300M over two years through the Fuel for Growth program.

• Maintained category leadership in Body Care, Home Fragrance, and Soaps & Sanitizers, with strong performance in new adjacencies.

• Board authorized a new $500M share repurchase program, replacing the prior $120M remaining authority.

Financial highlights

• Q4 2024 net sales were $2.8B, down 4.3% year-over-year due to calendar shifts but above guidance; full-year net sales $7.3B.

• Q4 EPS was $2.09, exceeding guidance; full-year adjusted EPS $3.29, reported EPS $3.61.

• Gross profit margin in Q4 was 46.7%, up 80 bps year-over-year; Q4 operating income was $678M (24.3% margin).

• Generated nearly $900M in operating cash flow and $725M in adjusted free cash flow for 2024.

• $400M in share repurchases and $177M in dividends paid in 2024.

Outlook and guidance

• 2025 net sales expected to grow 1%–3% year-over-year; EPS guidance of $3.25–$3.60; free cash flow $750M–$850M.

• Q1 2025 net sales expected to grow 1%–3%; Q1 EPS guidance of $0.36–$0.43.

• Full-year gross profit rate expected at ~44%; SG&A at ~27% of sales; capital expenditures planned at $250M–$270M.

• Plan to repurchase ~$300M of shares and maintain $0.80/share annual dividend in 2025.

• Guidance includes China tariff impact but excludes other potential tariff changes.