Bath & Body Works 30 forecast includes about $40M impact of tariffs

Bath & Body Works 30 forecast includes about $40M impact of tariffs

Bath & Body Works (BBWI), the personal care and home fragrance retailer, is set to report its Q2 2025 earnings this Thursday before market hours. Analysts expect the company to report revenues of $1.55 billion, a 1.7% year-over-year increase, and adjusted earnings of $0.38 per share [1]. However, a significant factor impacting these projections is the estimated $40 million impact of tariffs on the company's revenue [4].

The company's recent earnings report for Q2 2024 showed a non-GAAP EPS of $0.37, missing by $0.01 and revenue of $1.5 billion, down 2.0% year-over-year by $50 million [4]. This indicates a slower quarter for the company, with EPS guidance for the next quarter and full-year EPS guidance missing analysts' expectations significantly.

The impact of tariffs on Bath & Body Works' revenue is a notable concern for investors. The company has been facing increased costs due to tariffs on imported goods, which have been affecting its bottom line. The $40 million impact is expected to be a significant factor in the upcoming earnings report [4].

Analysts covering the company have mixed opinions about its business, with revenue estimates seeing 5 upward and 6 downward revisions over the last 30 days. Bath & Body Works has missed Wall Street's revenue estimates three times over the last two years [1].

Comparing Bath & Body Works with its peers in the specialty retail segment, some companies have reported their Q2 results. Sally Beauty posted flat year-on-year revenue, meeting analysts' expectations, while Warby Parker reported revenues up 13.9%, topping estimates by 0.7% [1]. Sally Beauty traded up 21.1% following the results, while Warby Parker was down 3.9%.

Investors should closely monitor the earnings report to understand how the company is managing the impact of tariffs and other headwinds. The company's ability to navigate these challenges will be crucial for its future performance.

References:
[1] https://finance.yahoo.com/news/earnings-watch-bath-body-works-030347548.html
[2] https://www.ainvest.com/news/bath-body-works-bbwi-expected-beat-earnings-estimates-2508/
[3] https://www.nasdaq.com/articles/insights-bath-body-works-bbwi-q2-wall-street-projections-key-metrics
[4] https://seekingalpha.com/news/4489987-bath-body-works-misses-q2-estimates-narrows-fy-guidance