Bath & Body Works Q1 Earnings Preview: Caution Is Warranted

  • Bath & Body Works is set to report first-quarter earnings for Fiscal 2025 on June 4. I am expecting a weak earnings report but a muted impact on the stock.
  • Bath & Body’s prospects are closely tied to the demand environment for the domestic beauty industry. Cracks are appearing in this market.
  • The one factor that has contributed the most to Bath & Body’s competitive advantages in recent years is constant innovation. The company does not plan to stop.
  • At a forward P/E of 15.72, BBWI stock is trading in line with the consumer discretionary sector average of 16.33. But the long-term picture holds promise for a meaningful expansion in multiples.

The last time I looked at Bath & Body Works (NYSE:BBWI) was when Daniel Loeb sent a letter to the company’s Board of Directors highlighting issues he has identified in several areas, including corporate governance, capital