Bath & Body Works reported stronger-than-expected Q1 earnings on Thursday, boosted by steady demand for its fragrances and personal care products, and a supply chain that shields it from the worst of US import tariffs.
The retailer posted earnings of 49 cents per share for the quarter ended May 3, topping analysts’ expectations of 47 cents.
Sales rose 3% year-on-year to $1.42 billion, in line with forecasts.
Unlike many retailers grappling with higher costs due to tariffs, Bath & Body Works sources most of its merchandise domestically, with only 10% coming from China.
CFO Eva Boratto credited the company’s U.S.-based supply chain for helping it navigate “the evolving trade environment.”
The company leaned on seasonal launches and promotions, including Easter-themed candles and new fragrance formats, to appeal to younger consumers and position its products as “affordable luxuries” amid inflation-driven belt-tightening.
Shares rose around 3% in premarket trading following the results. The company reaffirmed its full-year guidance.
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