(Reuters) – Shares of Bath & Body Works fell 12% on Thursday after the company forecast annual sales and profit largely below expectations as the fragrances and scented candles maker grapples with uncertain discretionary spending.
The forecasts also reflect the impact of U.S. President Donald Trump’s February tariffs of 10% on goods imported from China, the company said.
Earlier in the day, Trump said that his proposed 25% tariffs on Mexican and Canadian goods, which were paused for a month, will go into effect on March 4 as scheduled.
“We have the fastest ability to shift (the supply) as necessary … we can mitigate as much risk if there were any additional risk inside of the year,” CEO Gina Boswell said.
Bath & Body Works’ exposure to China is just about 10% of its supply, while Canada and Mexico represent about 7% combined, split almost equally.
The company forecast fiscal 2025 net sales growth of 1% to 3%, largely below analysts’ estimates for a 2.8% rise, according to data compiled by LSEG.
It expects full-year earnings per share of $3.25 to $3.60, compared with expectations of $3.62.
Still, the company’s holiday-quarter results beat estimates on marketing and promotion efforts targeted at younger consumers.
On an adjusted basis, Bath & Body Works posted a profit of $2.09 per share for the three months ended February 3, topping estimates of $2.05.
Its fourth-quarter sales fell 4.3% to $2.79 billion from a year ago, compared with estimates of $2.78 billion.
(Reporting by Neil J Kanatt and Aishwarya Venugopal in Bengaluru; Editing by Devika Syamnath, Sriraj Kalluvila and Alan Barona)
Brought to you by www.srnnews.com
