Bath & Body Works Reports 2.9% Net Sales Increase and 11.7% Operating Income Growth in Q1 Fiscal 2025

Bath & Body Works, Inc. reported a net sales increase of 2.9% for the first quarter of fiscal 2025, reaching $1,424 million compared to $1,384 million in the same period last year. The company's operating income also saw a significant rise, climbing to $209 million, an increase of 11.7% from $187 million in the first quarter of 2024. This growth in profitability was attributed to a higher gross profit margin, which improved to 45.4% from 43.8%, driven by strategic pricing and effective cost management. Net income for the quarter was $105 million, up from $87 million, resulting in a net income per diluted share of $0.49, compared to $0.38 in the prior year.

In terms of operational metrics, Bath & Body Works experienced an increase in customer transactions and average sales per transaction, particularly in its U.S. and Canadian stores, which generated $1,110 million in sales, a 4.3% increase from the previous year. However, direct sales through online channels decreased by 4.3% to $250 million, reflecting a shift in consumer preference towards buy online, pick up in store (BOPIS) options. International sales also grew by 10.1%, reaching $64 million, primarily due to improved product shipment timing to partners.

The company’s balance sheet showed total assets of $4,881 million as of May 3, 2025, a slight decrease from $5,221 million a year earlier. Cash and cash equivalents were reported at $636 million, down from $855 million, while inventories increased to $869 million from $814 million, indicating a strategic buildup in preparation for seasonal demand. Bath & Body Works also repurchased 4.326 million shares for $135 million during the quarter, reflecting its ongoing commitment to returning value to shareholders.

Looking ahead, Bath & Body Works remains focused on sustainable growth through innovation and strategic investments, particularly in technology and real estate. The company anticipates continued consumer value-seeking behavior amid a challenging macroeconomic environment, including potential impacts from trade policies and tariffs. Management expressed confidence in their ability to navigate these challenges, leveraging a predominantly U.S.-based supply chain to mitigate risks associated with global trade disruptions. The company plans to maintain its capital expenditure range of $250 million to $270 million for the year, emphasizing its commitment to long-term profitability and shareholder value.