Bath & Body Works reported its fourth-quarter and full-year 2024 results, exceeding earnings expectations and providing 2025 guidance.

The company recorded fourth-quarter net sales of $2.8 billion and earnings per diluted share of $2.09, surpassing projections. Strong traffic and conversion rates contributed to performance, despite a 4.3% decline in sales due to a shifted fiscal calendar that included an extra week in 2023. Net income for the quarter was $453 million, down from $579 million in the prior year.

For the full year, net sales declined 1.6% to $7.3 billion, reflecting the impact of the 53rd week in fiscal 2023. Earnings per diluted share were $3.61, compared to $3.84 in 2023. The company repurchased 10.4 million shares for $400 million and exited the year with a debt leverage ratio of 2.5x.

Looking ahead to 2025, Bath & Body Works expects net sales growth of 1% to 3% and earnings per diluted share between $3.25 and $3.60. The first quarter is projected to see similar sales growth, with earnings per diluted share between $0.36 and $0.43. The company also authorized a new $500 million share repurchase program.

CEO Gina Boswell highlighted the company’s success in product innovation, marketing, and international expansion, positioning it for continued growth despite broader retail sector challenges.