11:14 AM EST, 02/27/2025 (MT Newswires) -- Bath & Body Works ( BBWI ) on Thursday reported a year-year-year drop in fiscal fourth-quarter sales, while the retailer offering body care products and home fragrances set expectations for a likely earnings decline this year.

Revenue fell to $2.79 billion for the three months ended Feb. 1 from $2.91 billion the year earlier, but narrowly topped the $2.78 billion average analyst estimate on FactSet. Adjusted earnings per share edged up to $2.09 from $2.06 and beat the $2.04 consensus.

"While we continue to see value-seeking customer behavior and competitive intensity, we closed out the year strong," with net sales above the high end of management's guidance, Chief Executive Gina Boswell told analysts on a conference call, according to a FactSet transcript.

Sales were volume led, Chief Financial Officer Eva Boratto said on the call.

"Despite complex challenges facing the broader retail sector, we ended the second half of the year strong," Boswell said in a statement. "As we enter 2025, we have a lot to be excited about, and we are eager to build on our momentum."

For 2025, Bath & Body Works ( BBWI ) is guiding sales growth of 1% to 3% over 2024's revenue of $7.31 billion, which were down 1.6% year to year. It set a GAAP EPS guidance range between $3.25 and $3.60, compared with $3.61 in the year ended in Feb. 1. Analysts surveyed by FactSet are modeling revenue of $7.52 billion and GAAP EPS of $3.64 in the ongoing year.

Shares of Bath & Body Works ( BBWI ) tumbled 11% in Thursday trade.

Sales in the first quarter are projected to grow between 1% and 3%. Management guided EPS between $0.36 and $0.43, compared with $0.38 in the first quarter last year. Analysts are expecting revenue of $1.42 billion and EPS of $0.44 in the current quarter.

The guidance reflects the impact of import tariffs on China, which accounts for about 10% of Bath & Body Works' ( BBWI ) supply, Boratto told analysts. "We have not included other potential tariff impacts in our guidance due to the current uncertainty," she said.

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