Bath & Body Works Q1 Earnings Surpass Expectations, Revenue Up 3%

Bath & Body Works, a leading retailer of bath and body care products, announced its first-quarter earnings, which surpassed market expectations. The company's steady demand for fragrances and personal care products, along with minimal impact from import tariffs, allowed it to withstand broader pressures in the U.S. retail industry.

The company's earnings per share (EPS) for the quarter were 49 cents, exceeding the consensus estimate of 47 cents. Revenue grew by 3% to 1.42 billion dollars, in line with market expectations. The company's ability to maintain stable demand for its core products, despite external economic pressures, was a key factor in its strong performance.

Bath & Body Works has been investing heavily in promotional activities and product innovation. The company launched a "Sweet Carrot Cake" scented candle themed around Easter and a new "Wallflower" fragrance series. By positioning its products as ideal gifts and "affordable luxuries," particularly for younger consumers, the company has successfully driven sales growth.

The company's strong performance comes at a time when the U.S. economy faces uncertainty, with President Trump's trade policies exacerbating recession concerns and inflation-pressed consumers becoming more cautious with discretionary spending. Unlike many of its peers, Bath & Body Works primarily sources its products domestically, with only about 10% of its goods coming from China and 7% from Canada and Mexico combined.

Chief Financial Officer Eva Boratto stated, "We are effectively leveraging our U.S.-centric supply chain to navigate the evolving trade environment. I am confident that as we progress towards 2025, we will be able to meet consumer demand through fragrance innovation and high-quality, affordable products."

The company maintained its annual net sales and profit forecasts, indicating confidence in its future performance. The positive earnings report was well-received by investors, who saw the company's ability to navigate the current retail landscape as a positive sign for its future prospects.