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.