Bath & Body Works, Inc. (NYSE: BBWI) is a leading personal care and home fragrance retailer known for its product lines including fine fragrance mists, body lotions, and candles. The company operates approximately 1,900 stores across North America and has a predominantly U.S.-based supply chain.

In the first quarter of 2025, Bath & Body Works reported net sales of $1.424 billion, a 2.9% increase from $1.384 billion in the same period last year. Earnings per diluted share rose 29% to $0.49, surpassing previous expectations. Operating income during this quarter was $209 million, reflecting a 14.7% margin on sales, up from $187 million a year prior.

The company’s net sales growth was largely driven by its Disney collaboration, which saw strong consumer engagement and contributed to the overall top-line performance. In U.S. and Canadian stores, net sales reached $1.110 billion, marking a 4.3% increase year-over-year. However, direct net sales fell 4.3% to $250 million compared to last year.

Bath & Body Works’ performance in the international segment also showed promise, with sales rising 10.1% to $64 million. The gross profit for the first quarter stood at $646 million, yielding a gross profit rate of 45.4%, which represented a 160 basis points improvement compared to the previous year. The improvement was attributed to a 100 basis point increase in merchandise margin.

As for guidance, Bath & Body Works is maintaining its full-year 2025 net sales forecast of 1% to 3% growth, which aligns with the $7.307 billion earned in fiscal 2024. The company also provided an earnings per diluted share guidance range of $3.25 to $3.60 for the full year. Additionally, second-quarter net sales are projected to be flat to up 2%, with expected earnings per diluted share between $0.33 and $0.38.

On inventory, Bath & Body Works reported a 7% rise compared to the prior year, influenced by tariff-related costs and strategic measures. The company anticipates capital expenditures in the range of $250 million to $270 million for the year, primarily focused on real estate and technology investments.

In terms of share repurchases, Bath & Body Works forecasts around $300 million for the year, having repurchased 4.3 million shares for $135 million at an average price of $31.24 per share in the first quarter.