From GlobeNewswire: 2025-02-27 06:25:00

Bath & Body Works reported fourth quarter 2024 net sales of $2.8 billion and earnings per diluted share of $2.09, surpassing expectations. The company attributes success to product innovation and customer experience. Annual 2025 guidance includes 1% to 3% net sales growth and earnings per diluted share of $3.25 to $3.60. Board authorizes $500M share repurchase program. Bath & Body Works has posted a slide presentation on their Investor Relations website with information from their earnings call. The company is a leader in personal care and home fragrance, with over 1,890 locations in the U.S. and Canada. They offer a variety of products, from fine fragrance mists to 3-wick candles.

The company’s future performance may be impacted by various factors beyond their control, including economic conditions, consumer spending patterns, and market disruptions. Risks also include labor-related costs, store traffic, and international expansion challenges. Additionally, factors like political instability, currency exchange rates, and product input costs can affect financial results.

Bath & Body Works emphasizes the importance of protecting their brand image and ensuring product safety. They rely on a limited number of suppliers for inventory needs and face challenges related to energy costs and information technology systems. Compliance with laws and regulations, as well as data privacy and security, are also key considerations for the company. Bath & Body Works, Inc. reported a decrease in net sales in the fourth quarter of 2024 compared to the previous year, with net income reaching $453 million. The company’s balance sheet showed total assets of $4,872 million and total liabilities of $1,231 million. Operating activities generated $886 million in net cash. Adjusted financial information presented a Debt Leverage Ratio of 2.5 for 2024.

In 2024, Bath & Body Works, Inc. forecasted net cash provided by operating activities between $1,020 million and $1,100 million, with capital expenditures ranging from $270 million to $250 million. The company expects free cash flow to be between $750 million and $850 million for the year. Adjusted financial information for the year showed an Adjusted Net Income of $729 million and Adjusted Net Income Per Diluted Share of $3.29.

The company provided adjusted financial information for fiscal years 2024 and 2023, excluding certain gains and charges to provide a clearer picture of its ongoing operations. Adjusted results for 2024 included the exclusion of a $39 million gain on sales of Easton investments and a $44 million tax benefit. In 2023, adjusted results excluded an $8 million impairment charge and a $6 million gain on extinguishment of debt. Bath & Body Works, Inc. uses adjusted financial information as key performance measures for internal evaluation. Bath & Body Works, Inc. reported a decrease in total sales for the fourth quarter of 2024, with a 4.3% decline compared to the previous year. The company’s total sales for the full year of 2024 also decreased by 1.6% compared to 2023. The results include both company-operated and partner-operated stores.

The company’s Debt Leverage Ratio is a non-GAAP financial measure used to analyze its capital structure. The Debt Leverage Ratio calculation may not be comparable to measures reported by other companies. It should be evaluated in addition to, not as a substitute for, other GAAP financial measures. The company also provided Adjusted Forecasted Financial Information, including Forecasted Free Cash Flow.

Bath & Body Works’ Forecasted Free Cash Flow is defined as Forecasted Net Cash Provided by Operating Activities minus Forecasted Capital Expenditures. This non-GAAP financial measure is used to analyze the company’s anticipated cash generation ability. The Forecasted Free Cash Flow calculation may vary from measures reported by other companies and should be evaluated alongside other GAAP financial measures.



Read more at GlobeNewswire:: Bath & Body Works Reports 2024 Fourth Quarter and Full-Year