Bath & Body Works just announced its second new CEO in three years, and he's coming straight from a leadership shakeup at Nike. According to a press release published this morning, Daniel Heaf will take over at Bath & Body Works, effective immediately.
Shares of Bath & Body Works (BBWI) fell after the personal care and home fragrance retailer shook up its top leadership, gave preliminary first-quarter results, and reiterated its 2025 outlook.
Bath & Body Works has named Daniel Heaf as its new CEO, effectively immediately, replacing Gina Boswell. Heaf was most recently Nike's chief transformation and strategy officer until his role was eliminated by the sneaker giant's new CEO Elliott Hill.
BBWI's Q1 results are likely to be impacted by product innovation, global expansion and digital engagement.
Bath & Body Works (BBWI) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Bath & Body Works does a majority of its manufacturing in the United States, so tariff policies won't significantly affect its production costs.
Bath & Body Works faces industry challenges and trade war impacts but offers attractive income options through its long-term debt and put options. Despite sales declines, the company maintains a healthy gross profit margin and has improved its equity position by reducing long-term debt. Operating cash flow remains strong, supporting dividends, debt repayment, and stock repurchases, with stable free cash flow since the pandemic.
Investors need to pay close attention to Bath & Body Works (BBWI) stock based on the movements in the options market lately.
Goldman Sachs analyst Kate McShane on Tuesday reiterated a Buy rating on the shares of Bath & Body Works Inc BBWI with a price forecast of $49.00.
Retail investors focus on who is buying certain stocks every quarter, as institutional holdings and investors are reported in that same cadence. However, there is a different way to look at buying activity, one that is much more powerful if it meets all the right criteria.
Bath & Body Works, Inc. ended FY2024 on a strong note as earnings performed stably comparably. The FY2025 outlook stands worse than expected. Further, Trump's 25% tariffs on Canada & Mexico, and an additional 10% tariff on China could have a negative impact on earnings. Supply chain management could mitigate some of the negative impacts, and Bath & Body Works' high margins should still enable quite stable earnings despite the headwind.
BBWI's fourth-quarter results reflect lower y/y revenues and higher earnings. The operating margin increases 40 basis points to 24.3% in the quarter.