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Bath & Body Works beats quarterly profit estimates on minimal tariff exposure
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Bath & Body Works beats quarterly profit estimates on minimal tariff exposure
May 29, 2025 6:08 AM

May 29 (Reuters) - Bath & Body Works ( BBWI ) on

Thursday beat first-quarter profit estimates as steady demand

for its fragrances and personal care products, combined with its

limited exposure to import tariffs, helped counter broader

pressures in the U.S. retail sector.

The beauty and skincare retailer has invested in extensive

promotions and deals as well as in product innovation, including

its Easter-themed Sweet Carrot Cake candles and new variants of

Wallflowers fragrances.

The Ohio-based company's marketing initiatives to position

its products as ideal gifts and affordable luxuries, especially

to a younger consumer demographic, also boosted sales.

Bath & Body Works' ( BBWI ) steady performance comes at a time when

uncertainty surrounding U.S. President Donald Trump's trade

policies has boosted recession fears, prompting inflation-weary

consumers to become more selective with discretionary spending.

The company, unlike many of its peers, has been largely

insulated from import tariffs as it sources the majority of its

merchandise locally. Only about 10% of its merchandise comes

from China, with Canada and Mexico accounting for a combined 7%.

"We're effectively leveraging our predominantly U.S.-based

supply chain to navigate the evolving trade environment and I'm

confident in our ability to adapt to meet the consumer where

they are with fragrance innovation and high-quality product at

compelling price points as we move through 2025," CFO Eva

Boratto said.

Bath & Body Works' ( BBWI ) shares were up about 3% in premarket

trading following the results.

The company posted profit of 49 cents per share for the

quarter ended May 3, compared with analysts' average estimate of

47 cents per share, according to data compiled by LSEG.

Its first-quarter sales rose 3% to $1.42 billion from a year

ago, in line with market expectations.

The company maintained its annual net sales and profit

forecasts.

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