Bath & Body Works, Inc. reported its financial results for the second quarter of fiscal 2025, revealing a modest increase in net sales and a decline in profitability compared to the same period last year. The company generated net sales of $1,549 million, a 1.5% increase from $1,526 million in the second quarter of 2024. However, net income fell to $64 million, down from $152 million in the prior year, resulting in a net income per diluted share of $0.30 compared to $0.68 in the second quarter of 2024. The decrease in profitability was attributed to higher general, administrative, and store operating expenses, which rose to $483 million from $443 million, largely due to leadership transition costs.
Year-to-date results also reflected a similar trend, with total net sales reaching $2,974 million, up 2.2% from $2,910 million in the same period last year. Year-to-date net income decreased to $169 million from $239 million, with net income per diluted share dropping to $0.79 from $1.06. The company noted that while store sales in North America increased, direct sales through online channels declined, indicating a shift in consumer purchasing behavior towards in-store experiences, particularly through buy online, pick up in store (BOPIS) options.
In terms of operational developments, Bath & Body Works expanded its store footprint, opening 33 new locations in the U.S. while closing 24, resulting in a total of 1,791 stores as of August 2, 2025. The company also reported a slight increase in international store count, with 537 locations globally. The total employee headcount remained stable, supporting the company's ongoing operational needs. The company’s inventory levels increased to $977 million from $863 million year-over-year, reflecting strategic preparations for upcoming seasonal demand.
Looking ahead, Bath & Body Works anticipates continued cautious consumer behavior, emphasizing the importance of value and convenience in purchasing decisions. The company plans to enhance its digital platform and product offerings to better align with consumer expectations, particularly among younger demographics. Additionally, the company is focused on mitigating the impacts of macroeconomic uncertainties, including tariffs and trade policy changes, through strategic sourcing and operational efficiencies. The management remains optimistic about leveraging its vertically integrated supply chain to navigate these challenges effectively.
Overall, while Bath & Body Works experienced growth in sales, the decline in profitability and increased operational costs highlight the challenges the company faces in a competitive retail environment. The strategic initiatives outlined in the outlook aim to position the company for sustainable growth and improved shareholder value in the future.
About Bath & Body Works, Inc.
Bath & Body Works, Inc. is a leading specialty retailer of personal care and home fragrance products, offering body care, soaps, sanitizers, and home fragrances under brands like Bath & Body Works and White Barn. Operating primarily in North America with international franchise partners, the company emphasizes innovative, affordable luxury fragrances, a strong omnichannel retail model, and a customer-centric experience through physical stores and digital platforms.
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