Bath & Body Works forecast annual sales and profit below expectations on Thursday, bracing for the impact of U.S. tariffs on Chinese imports as well as weak consumer spending on its fragrances and scented candles.
Bath & Body Works
Shares of the Ohio-based company fell 4% in premarket trading. High interest rates, economic uncertainty and years of elevated inflation have prompted Americans to tighten their purse strings. Retail sales in the U.S. dropped the most in nearly two years in January.
Customers are also switching to cheaper, private-label alternatives.
Bath & Body Works forecast fiscal 2025 net sales growth of to 1% to 3%, largely below analysts’ estimates for a 2.8% rise, according to data compiled by LSEG. It expects full-year 2025 earnings per share of $3.25 to $3.60, compared with expectations of $3.62.
The forecasts reflect the impact of recently enacted U.S. tariffs on goods imported from China but excludes potential impacts from other possible tariff changes, the company said. Still, the company’s holiday-quarter results beat estimates thanks to marketing and promotion efforts targeted at attracting younger consumers.
On an adjusted basis, Bath & Body Works posted a profit of $2.09 per share for the quarter ended February 3, compared with estimates of $2.05 per share.
Its third-quarter sales fell 4.3% to $2.79 billion from a year ago, narrowly beating estimates of $2.78 billion.
Separately, the company announced a share repurchase program of up to $500 million.
Like fashion brands and retailers, department stores have had to evolve their loyalty programs in response to changing customer expectations and the growing appeal of online shopping after the pandemic. With their extensive product offerings, effectively managing customer relationships is now essential to retaining shoppers. The International Association of Department Stores (IADS), representing around 15 global retailers, highlights the latest CRM strategies shaping the industry.
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Department stores have shifted “from a traditional, broad marketing approach to targeted, ongoing customer interactions,” the organization explains. “In the past, one-to-one interactions depended on skilled salespeople.” Now, these retailers are transitioning toward predictive models to anticipate customer behavior and deliver hyper-personalized experiences, requiring advanced technical infrastructures to process data more precisely.
Data management is central to this shift. El Palacio de Hierro has consolidated multiple disparate databases into a single platform in Mexico, integrating everything from checkout transactions to travel agency bookings and restaurant receipts. Meanwhile, at Magasin du Nord in Denmark, consumer segmentation modeling has been implemented, creating multiple sub-profiles and leading to a loyalty program that leverages sophisticated customer profiling, combining internal data with publicly available information.
Magasin du Nord’s personalized approach – DR
Another example is Tsum in Kyiv, which uses a real-time database to track changes in customer behavior and product interests. This allows it to implement retention measures and send personalized messages. Communication strategies are becoming increasingly tailored.
Loyalty programs are also evolving to engage better and satisfy consumers. Bloomingdale’s in the U.S. focuses on gathering customer feedback to improve the shopping experience, while Breuninger in Germany prioritizes its most premium clientele. Swiss retailer Manor has partnered with Mastercard to facilitate credit payments, noting that cardholders spend significantly more than other customers. Meanwhile, the Chalhoub Group in the Middle East has adopted WhatsApp as a new communication channel, achieving higher conversion rates than traditional email and SMS campaigns.
Retailers are seamlessly blending their online and in-store experiences to engage customers across both channels. According to IADS, Boyner found that omnichannel shoppers buy more frequently and generate higher revenue than single-channel customers. In response, the department store introduced a 90-minute delivery service from its physical locations. In the UK, Selfridges has taken an unconventional approach by rewarding customers simply for the time spent in-store, regardless of whether they make a purchase.
In conclusion, the federation stresses that “retailers must remain agile and innovative in their approach to customer engagement, to stay ahead in a competitive market, by continually improving the online and in-store experience.”
*IADS represents department stores including Beijing Hualian Group (China), Bloomingdale’s (U.S.), Boyner (Turkey), Breuninger (Germany), Centro Beco (Venezuela), Chalhoub (UAE), El Corte Inglés (Spain), El Palacio de Hierro (Mexico), Falabella (Chile, Colombia, Peru), Galeries Lafayette (France), Lifestyle International Holding (Hong Kong), Magasin du Nord (Denmark), Manor (Switzerland), The Mall Group (Thailand), and Tsum Kyiv (Ukraine).
Prada SpA’s co-owner has hinted that it’s looking at a potential deal to buy Versace but says the brand has also drawn interest from other industry players.
“Versace is on everyone’s table”, said Miuccia Prada, the designer who transformed a small shop in Milan into a global luxury brand. “I don’t know how it will end,” she said backstage at her show during Milan Fashion Week.
Versace boutique
The Italian company is working with advisers to evaluate a potential bid for the Versace brand, Bloomberg News reported earlier this month. Current owner Capri Holdings Ltd bought Versace in 2018 for about €1.8 billion ($1.9 billion). Prada is reviewing Versace after gaining access to its latest financial and sales figures, people familiar said.
A potential buyout by Prada could see the storied Italian brand return to a domestic owner after other fashion houses were scooped up by global players such as LVMH and Kering SA.
Family-owned Prada, whose shares are listed in Hong Kong, has emerged as one of the luxury sector’s winners amid a global downturn for high-end fashion items. Its sales surged in the third quarter of last year on the back of its Miu Miu brand, a hot commodity for younger consumers.
Capri, which also owns Michael Kors, has hired Barclays Plc to explore options for some of its portfolio companies after an $8.5 billion combination attempt with Tapestry Inc. was scrapped following a court order. Capri was downgraded to junk by S&P Global Ratings earlier this month.
More stories like this are available on bloomberg.com
The second day of the women’s ready-to-wear runway shows at Milan Fashion Week focused more than ever on virtuoso craftsmanship. But classic Italian artisanal expertise was reinterpreted with a contemporary vibe, incorporating new techniques. Especially in textile research. For next winter, designers have vied for creativity by experimenting on shapes and materials, as notably demonstrated by the collections of Diesel, Antonio Marras and Rambaldi.
Diesel’s Fall/Winter 2025-26 collection has picked up the thread introduced the previous season. Zombie-eyed models stared at the audience with the same disquieting gaze as in September, occasionally sporting day-glo Joker grins. Only the setting was new: this time, the huge hangar hosting the show was panelled with miles of graffiti’d canvas, which also covered a gigantic inflatable sculpture.
A few months ago, the jeans label owned by Renzo Rosso’s fashion group OTB called on graffiti artists from eight countries (China, UAE, India, Italy, Japan, Saudi Arabia, South Africa and the USA), from beginners to street-art legends, to participate in the Diesel Global Street Art Project, gathering together the world’s largest urban art collective. In total, 7,000 talented taggers gave free rein to their creativity, designing a series of graphic works which, assembled end-to-end, added up to 3,200 square metres of canvas in total. With the invitation, in the form of a can of spray paint, the guests were able to complete the décor doing a little bit of tagging of their own.
Designer Glenn Martens, who has recently taken charge of Maison Margiela, put all his ingenuity into developing new textures, shapes and constructions, through highly impressive research work. A classic denim jacket was lengthened into an overcoat. Martens dropped the waistline in skirts, trousers and jeans which seemed to hang miraculously at buttocks height, thanks to elastic belts and ad hoc underwear. Sensuality guaranteed, especially when male models donned their jeans under a bare chest, giving a glimpse of their derrières.
Martens was not afraid to jettison all-denim looks as he vigorously overhauled the OTB flagship label’s wardrobe, adding a dash of sophistication and modernity. He certainly has a thing for neoprene, which he used to make sharply fashioned, laser-cut black coats, but his limitless inventiveness was most evident in the fabric treatments he presented.
He used materials with worn, frayed, brushed, felted and bouclé effects, stressing the fabrics in every way possible to create dévoré looks. The fabric in some houndstooth wool sets seemed to pale and fade away in places, or even dissolve after being slashed and frayed, sometimes taking on a shaggy appearance. A denim top with shorts turned out to be a tracery of rainbow-coloured threads. Leather shirts and jackets featured corkscrew pleats, as if they had just been wrung out.
The front of a crumpled shirt was printed on a huge plaster glued to the torso. Elsewhere, tweed outfits were matched with printed leggings reproducing exactly the same texture. Trompe l’œil effects were indeed the collection’s centrepiece, in a medley of sizes, lengths, types of materials and garments, etc. The most striking item was a breathtaking cable-knit sweater made in flesh-coloured silicone, open onto a make-believe hairy chest! It is bound to be a smash hit.
At Antonio Marras, elegance rhymed with passion. With his sophisticated, sensitive fashion, the Sardinian designer knows how to raise the temperature. And it was no coincidence that SharonStone, the unforgettable Basic Instinct actress, was among the guests.
Perched on stiletto-heeled boots, their mouths painted crimson red and hair swept up in sparkling bejewelled buns, the models strode along the long runway clad in ultra-chic night-black looks, arms and legs covered with gloves and black lace stockings. Sometimes, there was a glimpse of a bare shoulder, as a jacket’s or a sweater’s sleeve slid down an arm.
The attitude was proud, defined by mid-length suits, tight-fitting dresses, straight skirts slit at the front, coats in sumptuous fabrics, and flowing trousers sets. Black was the dominant colour, featured in all kinds of fabrics – damask silk, brocade and velvet – and of treatments: floral fabric appliqué, embroidered micro pearls, panels, prints, jacquard, even patchwork assemblages of menswear fabrics in tartan and Prince of Wales checks.
Double rows of ruffles at the bottom of some dresses and skirts, long pleated skirts, slits, layered lightweight fabrics: they all contributed to add motion to the silhouette, which Marras undoubtedly imagined as coming to life in a tango’s body-to-body contact.
Sensuality was clearly felt, even in a simple outfit like the retro floral summer dress slipped over a cute neon yellow mohair sweater. The men’s looks were instead more casual, featuring comfortable suits, woollen long-johns, casual tops and sweatshirts.
For next winter, Rambaldi has designed a highly elegant collection with a vintage mood. The looks focused on tradition and the maternal figure, skilfully blending second-hand and upcycled items with contemporary creations, such as the knitted dresses and sweaters in a lozenge chequerboard pattern mixing 3D-knitted grey wool sections and old white crochet placemats.
The vintage items were identified with a special label bearing the inscription ‘Rambaldi Out of the Closet’, and fitted harmoniously within the collection. For example, the old stiff leather jacket that belonged to Rambaldi’s father, and the jumpsuit transformed into a pleated lace skirt. As well as a few classic pinstripe trousers and jackets.
The lozenge theme was also printed on nylon skirts and, in XXL size, on some knitted dresses, and in other items inspired by typical Icelandic knitting techniques. Wool and knitwear, the label’s core business, also featured in a series of highly appealing knitted handbags.
Rambaldi, who staged his show in the huge covered space of Milan’s wholesale flower market, had fun playing with sleeves. Some were knotted around the neck as a tie, others fitted around the chest forming an original flesh-coloured nylon top, or around the waist in sarong skirt style.