Bath & Body Works Stock Sinks on Warning China Tariffs Would Impact Results

Key Takeaways

Bath & Body Works (

BBWI

) shares tumbled 10% Thursday as the personal care and home fragrance retailer warned that new tariffs and soft consumer spending would hurt future results.

The company sees full-year
earnings per share (EPS)
between $3.25 and $3.60, with net sales growth of 1% to 3%. Analysts surveyed by Visible Alpha were looking for EPS of $3.66 and a sales increase of 3.02%.

Bath & Body Works noted that the guidance “reflects the impact of recently enacted tariffs on goods imported from China and excludes potential impacts from other possible tariff changes.”

Q4 Results Exceed Expectations

The outlook offset strong fourth-quarter results. Bath & Body Works posted EPS of $2.09 on sales of $2.79 billion that fell more than 4% but also exceeded forecasts.

CEO Gina Boswell said that despite “complex challenges facing the broader retail sector, we ended the second half of the year strong.”

Shares of Bath & Body Works have lost more than 20% of their value over the last year.

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