Bath & Body Works Reports 2025 Second Quarter Results and Updates Fiscal Year 2025 Guidance
Bath & Body Works (NYSE:BBWI) reported solid Q2 2025 results with net sales up 1.5% to $1.5 billion, reaching the high end of guidance. The company posted earnings per diluted share of $0.30 and adjusted EPS of $0.37.
The company raised the low end of its full-year 2025 adjusted EPS guidance from $3.25-$3.60 to $3.35-$3.60. Full-year net sales guidance was narrowed to 1.5-2.7% growth. BBWI increased its share repurchase target from $300 million to $400 million and expects to generate free cash flow of $750-850 million in 2025.
Management is focusing on three strategic initiatives: enhancing digital experience, improving product efficacy, and expanding distribution channels. The company operates 1,904 stores in the U.S. and Canada, plus 537 international franchised locations.
Bath & Body Works (NYSE:BBWI) ha comunicato risultati solidi per il 2° trimestre 2025, con vendite nette in crescita dell'1,5% a 1,5 miliardi di dollari, raggiungendo la fascia alta delle previsioni. L'utile per azione diluito è stato di 0,30 $ e l'EPS rettificato di 0,37 $.
La società ha alzato il limite inferiore della guidance sull'EPS rettificato per l'intero esercizio 2025, portandolo da 3,25-3,60 $ a 3,35-3,60 $. La previsione sulle vendite nette annuali è stata ristretta a una crescita dell'1,5-2,7%. BBWI ha aumentato il programma di riacquisto azionario da 300 milioni a 400 milioni di dollari e prevede un flusso di cassa libero di 750-850 milioni di dollari nel 2025.
La direzione è concentrata su tre iniziative strategiche: migliorare l'esperienza digitale, aumentare l'efficacia dei prodotti ed espandere i canali distributivi. L'azienda gestisce 1.904 negozi negli USA e in Canada, oltre a 537 punti vendita internazionali in franchising.
Bath & Body Works (NYSE:BBWI) presentó sólidos resultados en el 2T de 2025, con ventas netas que subieron 1.5% hasta $1.5 mil millones, alcanzando el extremo alto de la guía. La compañía registró un beneficio por acción diluido de $0.30 y un BPA ajustado de $0.37.
La empresa elevó el extremo inferior de su guía de BPA ajustado para todo 2025, de $3.25-$3.60 a $3.35-$3.60. La previsión de ventas netas anuales se acortó a un crecimiento de 1.5-2.7%. BBWI aumentó su objetivo de recompra de acciones de $300 millones a $400 millones y espera generar flujo de caja libre de $750-850 millones en 2025.
La dirección se está enfocando en tres iniciativas estratégicas: mejorar la experiencia digital, aumentar la eficacia del producto y ampliar los canales de distribución. La compañía opera 1,904 tiendas en EE. UU. y Canadá, además de 537 ubicaciones internacionales franquiciadas.
Bath & Body Works (NYSE:BBWI)는 2025 회계연도 2분기에 견조한 실적을 발표했습니다. 순매출이 1.5% 증가한 15억 달러로 가이던스 상단에 도달했습니다. 희석주당순이익은 $0.30, 조정 EPS는 $0.37였습니다.
회사는 2025 회계연도 조정 EPS 가이던스의 하단을 $3.25-$3.60에서 $3.35-$3.60으로 상향 조정했습니다. 연간 순매출 가이던스는 1.5-2.7% 성장으로 좁혀졌습니다. BBWI는 자사주 매입 목표를 3억 달러에서 4억 달러로 늘렸고, 2025년 자유현금흐름을 7.5억~8.5억 달러로 예상합니다.
경영진은 디지털 경험 향상, 제품 효능 개선, 유통 채널 확대의 세 가지 전략적 이니셔티브에 집중하고 있습니다. 회사는 미국과 캐나다에 1,904개 매장을 운영하며, 추가로 537개의 국제 프랜차이즈 매장이 있습니다.
Bath & Body Works (NYSE:BBWI) a publié de solides résultats pour le 2e trimestre 2025, avec des ventes nettes en hausse de 1,5% à 1,5 milliard de dollars, atteignant le haut de la fourchette de ses prévisions. Le bénéfice dilué par action s'élève à 0,30 $ et le BPA ajusté à 0,37 $.
La société a relevé le bas de sa fourchette de BPA ajusté pour l'exercice 2025, de 3,25-3,60 $ à 3,35-3,60 $. Les prévisions de ventes nettes annuelles ont été resserrées à une croissance de 1,5-2,7%. BBWI a porté son objectif de rachats d'actions de 300 millions à 400 millions de dollars et prévoit de générer un flux de trésorerie disponible de 750-850 millions de dollars en 2025.
La direction se concentre sur trois initiatives stratégiques : améliorer l'expérience digitale, renforcer l'efficacité des produits et étendre les canaux de distribution. L'entreprise exploite 1 904 magasins aux États-Unis et au Canada, ainsi que 537 emplacements franchisés à l'international.
Bath & Body Works (NYSE:BBWI) meldete solide Ergebnisse für das 2. Quartal 2025: die Nettoeinnahmen stiegen um 1,5% auf 1,5 Milliarden Dollar und lagen damit am oberen Ende der Prognose. Das verwässerte Ergebnis je Aktie betrug $0,30, das bereinigte EPS $0,37.
Das Unternehmen hob die Untergrenze seiner bereinigten Jahres-EPS-Prognose 2025 von $3,25-$3,60 auf $3,35-$3,60 an. Die Jahresprognose für die Nettoumsätze wurde auf ein Wachstum von 1,5–2,7% eingegrenzt. BBWI erhöhte das Aktienrückkaufziel von 300 Mio. auf 400 Mio. $ und erwartet für 2025 einen freien Cashflow von 750–850 Mio. $.
Das Management konzentriert sich auf drei strategische Initiativen: Verbesserung der digitalen Erfahrung, Steigerung der Produkteffizienz und Ausbau der Vertriebskanäle. Das Unternehmen betreibt 1.904 Filialen in den USA und Kanada sowie zusätzlich 537 internationale Franchise-Standorte.
- Net sales increased 1.5% to $1.5 billion, at high end of guidance
- U.S. and Canada store sales grew 4.9% to $1.196 billion
- Raised low end of full-year adjusted EPS guidance to $3.35-$3.60
- Increased share repurchase target from $300M to $400M
- Expected free cash flow of $750-850M for 2025
- Direct sales (U.S. and Canada) declined 10.1% to $267M
- Operating income decreased to $157M from $183M year-over-year
- Net income dropped to $64M from $152M year-over-year
- International sales declined 2.9% to $86M
- Incurred $15M in pre-tax costs for leadership transition
Insights
BBWI delivered solid Q2 with sales up 1.5%, raised guidance floor, and is executing on strategic initiatives despite margin pressure.
Bath & Body Works posted $1.55 billion in Q2 revenue, growing
The company's profitability metrics revealed mixed performance. Adjusted EPS remained flat at
Management has narrowed their full-year 2025 sales guidance from
The company is increasing their share repurchase target from
BBWI's inventory position increased by
The company highlighted three strategic initiatives they call "no-regret moves": elevating digital experience (despite current digital sales decline), amplifying product efficacy, and expanding distribution channels. These initiatives aim to address the company's most pressing challenge – finding new growth avenues in a mature market while improving their omnichannel capabilities.
- Second quarter net sales up
1.5% to$1.5 billion , at the high end of the guidance range - Earnings per diluted share of
$0.30 ; adjusted earnings per diluted share of$0.37 , at the high end of the guidance range - Full-year 2025 earnings per diluted share guidance of
$3.28 t o$3.53 ; raising the low end of adjusted earnings per diluted share guidance from$3.25 t o$3.60 t o$3.35 t o$3.60 , inclusive of current tariff rates - Company delivered early progress on three strategic no-regret moves to accelerate near-term growth while unlocking opportunities for consistent, durable growth
COLUMBUS, Ohio, Aug. 28, 2025 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) today reported second quarter 2025 results.
Daniel Heaf, chief executive officer of Bath & Body Works, commented, “Our team delivered a solid quarter, with revenue and adjusted earnings per share at the high end of our guidance range. Based on our strong first-half results and our confidence in our outlook, we are raising the low end of our full-year adjusted earnings per share guidance range.
We are moving with urgency on three no regret moves: elevating the digital experience, amplifying product efficacy, and expanding distribution to meet consumers where they are to unlock opportunities for durable long-term growth. While we still have work to do, I am energized by the focus and commitment of our teams and the opportunities in front of us.”
Second Quarter 2025 Results
The company reported net sales of
The company reported earnings per diluted share of
Reported second quarter 2025 results included pre-tax costs of
Excluding these items, adjusted earnings per diluted share for the second quarter of 2025 was
At the conclusion of this press release is a reconciliation of reported‐to‐adjusted results, including a description of the adjusted items.
2025 Guidance
The company is narrowing its full-year 2025 net sales guidance from
The company expects third quarter 2025 net sales to be up
For a reconciliation of our reported GAAP to adjusted non-GAAP earnings per diluted share for fiscal 2024, refer to our Annual Report on Form 10-K, filed with the SEC on March 14, 2025.
Earnings Call and Additional Information
Bath & Body Works, Inc. will conduct its second quarter earnings call at 8:30 a.m. ET on August 28. To listen, call 877-407-9219 (international dial-in number: 412-652-1274). For an audio replay, call 877-660-6853 (international replay number: 201-612-7415); access code 13754889 or log onto www.BBWInc.com. A slide presentation has been posted on the company’s Investor Relations website that summarizes certain information in the company‘s prepared remarks from the earnings call as well as some additional facts and figures regarding the company’s operating performance and guidance.
ABOUT BATH & BODY WORKS
Home of America’s Favorite Fragrances®, Bath & Body Works is a global leader in personal care and home fragrance, including top-selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. Powered by agility and innovation, the company’s predominantly U.S.-based supply chain enables it to deliver quality, on-trend luxuries at affordable prices. Bath & Body Works serves and delights customers however and wherever they want to shop, from welcoming, in-store experiences at 1,904 company-operated Bath & Body Works locations in the U.S. and Canada, 537 international franchised locations and an online storefront at bathandbodyworks.com (as of August 2, 2025).
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made by our Company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential,” “target,” “goal” and any similar expressions may identify forward-looking statements. There are risks, uncertainties and other factors that in some cases have affected and, in the future, could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this report or otherwise made by the Company or our management. These factors can be found in Item 1A. Risk Factors in our 2024 Annual Report on Form 10-K and our subsequent filings.
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
We announce material financial and operational information using our investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about the Company, our business and our results of operations may also be announced by posts on our accounts on social media channels, including the following: Facebook, Instagram, X, LinkedIn, Pinterest, TikTok and YouTube. The information that we post through these social media channels and on our website may be deemed material. As a result, we encourage investors, the media and others interested in the Company to monitor these social media channels in addition to following our investor relations website, press releases, SEC filings and public conference calls and webcasts. The list of social media channels we use may be updated from time to time on our investor relations website.
For further information, please contact:
Bath & Body Works, Inc.:
Luke Long
InvestorRelations@bbw.com
Media Relations
Emmy Beach
Communications@bbw.com
| BATH & BODY WORKS, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In millions, except per share amounts) | ||||||||||||||||
| Second Quarter | Year-to-Date | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net Sales | $ | 1,549 | $ | 1,526 | $ | 2,974 | $ | 2,910 | ||||||||
| Costs of Goods Sold, Buying and Occupancy | (909 | ) | (900 | ) | (1,687 | ) | (1,677 | ) | ||||||||
| Gross Profit | 640 | 626 | 1,287 | 1,233 | ||||||||||||
| General, Administrative and Store Operating Expenses | (483 | ) | (443 | ) | (920 | ) | (863 | ) | ||||||||
| Operating Income | 157 | 183 | 367 | 370 | ||||||||||||
| Interest Expense | (68 | ) | (77 | ) | (139 | ) | (159 | ) | ||||||||
| Other Income, Net | 6 | 47 | 13 | 61 | ||||||||||||
| Income Before Income Taxes | 95 | 153 | 241 | 272 | ||||||||||||
| Provision for Income Taxes | (31 | ) | (1 | ) | (72 | ) | (33 | ) | ||||||||
| Net Income | $ | 64 | $ | 152 | $ | 169 | $ | 239 | ||||||||
| Net Income per Diluted Share | $ | 0.30 | $ | 0.68 | $ | 0.79 | $ | 1.06 | ||||||||
| Weighted Average Diluted Shares Outstanding | 211 | 223 | 213 | 225 | ||||||||||||
| BATH & BODY WORKS, INC. | ||||||||
| CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (In millions) | ||||||||
| August 2, 2025 | August 3, 2024 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and Cash Equivalents | $ | 364 | $ | 514 | ||||
| Accounts Receivable, Net | 131 | 146 | ||||||
| Inventories | 977 | 863 | ||||||
| Easton Assets Held for Sale | 81 | — | ||||||
| Other | 153 | 143 | ||||||
| Total Current Assets | 1,706 | 1,666 | ||||||
| Property and Equipment, Net | 1,124 | 1,166 | ||||||
| Operating Lease Assets | 984 | 1,043 | ||||||
| Goodwill | 628 | 628 | ||||||
| Trade Name | 165 | 165 | ||||||
| Deferred Income Taxes | 133 | 143 | ||||||
| Other Assets | 74 | 137 | ||||||
| Total Assets | $ | 4,814 | $ | 4,948 | ||||
| LIABILITIES AND EQUITY (DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts Payable | $ | 567 | $ | 411 | ||||
| Accrued Expenses and Other | 541 | 526 | ||||||
| Current Debt | — | 313 | ||||||
| Current Operating Lease Liabilities | 194 | 186 | ||||||
| Income Taxes | 1 | 61 | ||||||
| Total Current Liabilities | 1,303 | 1,497 | ||||||
| Deferred Income Taxes | 23 | 45 | ||||||
| Long-term Debt | 3,888 | 3,881 | ||||||
| Long-term Operating Lease Liabilities | 912 | 984 | ||||||
| Other Long-term Liabilities | 235 | 259 | ||||||
| Total Equity (Deficit) | (1,547 | ) | (1,718 | ) | ||||
| Total Liabilities and Equity (Deficit) | $ | 4,814 | $ | 4,948 | ||||
| BATH & BODY WORKS, INC. | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Unaudited) | ||||||||
| (In millions) | ||||||||
| Year-to-Date | ||||||||
| 2025 | 2024 | |||||||
| Operating Activities: | ||||||||
| Net Income | $ | 169 | $ | 239 | ||||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||||||
| Depreciation of Long-lived Assets | 128 | 142 | ||||||
| Share-based Compensation Expense | 18 | 22 | ||||||
| Gain on Sales of Easton Investments | — | (39 | ) | |||||
| Deferred Income Taxes | (1 | ) | (102 | ) | ||||
| Changes in Assets and Liabilities: | ||||||||
| Accounts Receivable | 75 | 78 | ||||||
| Inventories | (241 | ) | (154 | ) | ||||
| Accounts Payable, Accrued Expenses and Other | 157 | (67 | ) | |||||
| Income Taxes Payable | (139 | ) | (79 | ) | ||||
| Other Assets and Liabilities | (21 | ) | (10 | ) | ||||
| Net Cash Provided by Operating Activities | 145 | 30 | ||||||
| Investing Activities: | ||||||||
| Capital Expenditures | (93 | ) | (101 | ) | ||||
| Proceeds from Sales of Easton Investments | — | 50 | ||||||
| Other Investing Activities | (2 | ) | 11 | |||||
| Net Cash Used for Investing Activities | (95 | ) | (40 | ) | ||||
| Financing Activities: | ||||||||
| Payments for Long-term Debt | — | (202 | ) | |||||
| Repurchases of Common Stock | (254 | ) | (248 | ) | ||||
| Dividends Paid | (85 | ) | (90 | ) | ||||
| Tax Payments related to Share-based Awards | (8 | ) | (15 | ) | ||||
| Other Financing Activities | (15 | ) | (5 | ) | ||||
| Net Cash Used for Financing Activities | (362 | ) | (560 | ) | ||||
| Effects of Exchange Rate Changes on Cash and Cash Equivalents | 2 | — | ||||||
| Net Decrease in Cash and Cash Equivalents | (310 | ) | (570 | ) | ||||
| Cash and Cash Equivalents, Beginning of Year | 674 | 1,084 | ||||||
| Cash and Cash Equivalents, End of Period | $ | 364 | $ | 514 | ||||
| BATH & BODY WORKS, INC. | ||||||||||||||||||||||
| Second Quarter 2025 | ||||||||||||||||||||||
| Total Sales (In millions): | ||||||||||||||||||||||
| Second Quarter | Year-to-Date | |||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | |||||||||||||||||
| Stores – U.S. and Canada (a) | $ | 1,196 | $ | 1,140 | 4.9 | % | $ | 2,307 | $ | 2,205 | 4.6 | % | ||||||||||
| Direct – U.S. and Canada | 267 | 297 | (10.1 | %) | 517 | 558 | (7.4 | %) | ||||||||||||||
| International (b) | 86 | 89 | (2.9 | %) | 150 | 147 | 2.3 | % | ||||||||||||||
| Total Bath & Body Works | $ | 1,549 | $ | 1,526 | 1.5 | % | $ | 2,974 | $ | 2,910 | 2.2 | % | ||||||||||
| ___________________ (a) Results include fulfilled buy online pick up in store orders. (b) Results include royalties associated with franchised stores and wholesale sales. | ||||||||||||||||||||||
| Total Company-operated Stores: | ||||||||||||
| Stores | Stores | |||||||||||
| 2/1/2025 | Opened | Closed | 8/2/2025 | |||||||||
| United States | 1,782 | 33 | (24 | ) | 1,791 | |||||||
| Canada | 113 | — | — | 113 | ||||||||
| Total Bath & Body Works | 1,895 | 33 | (24 | ) | 1,904 | |||||||
| Total Partner-operated Stores: | ||||||||||||
| Stores | Stores | |||||||||||
| 2/1/2025 | Opened | Closed | 8/2/2025 | |||||||||
| International | 494 | 25 | (18 | ) | 501 | |||||||
| International – Travel Retail | 35 | 3 | (2 | ) | 36 | |||||||
| Total International (a) | 529 | 28 | (20 | ) | 537 | |||||||
| ___________________ (a) Includes store locations only and does not include kiosks, shop-in-shops, gondola or beauty counter locations. | ||||||||||||
| BATH & BODY WORKS, INC. | ||||||||||||||||
| ADJUSTED FINANCIAL INFORMATION | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Dollars in millions, except per share amounts) | ||||||||||||||||
| Second Quarter | Year-to-Date | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Reported Operating Income to Adjusted Operating Income | ||||||||||||||||
| Reported Operating Income | $ | 157 | $ | 183 | $ | 367 | $ | 370 | ||||||||
| Leadership Transition Costs | 15 | — | 15 | — | ||||||||||||
| Adjusted Operating Income | $ | 172 | $ | 183 | $ | 382 | $ | 370 | ||||||||
| Reconciliation of Reported Tax Rate to Adjusted Tax Rate | ||||||||||||||||
| Reported Tax Rate | 32.3 | % | 0.9 | % | 29.9 | % | 12.1 | % | ||||||||
| Tax Rate Impact of Leadership Transition Costs | (3.1 | ) | — | (1.2 | ) | — | ||||||||||
| Tax Rate Impact of Gain on Sales of Easton Investments | — | (2.4 | ) | — | (1.3 | ) | ||||||||||
| Tax Rate Impact of Valuation Allowance Release | — | 28.5 | — | 16.1 | ||||||||||||
| Adjusted Tax Rate | 29.2 | % | 27.0 | % | 28.7 | % | 26.9 | % | ||||||||
| Reconciliation of Reported Net Income to Adjusted Net Income | ||||||||||||||||
| Reported Net Income | $ | 64 | $ | 152 | $ | 169 | $ | 239 | ||||||||
| Leadership Transition Costs | 15 | — | 15 | — | ||||||||||||
| Gain on Sales of Easton Investments | — | (39 | ) | — | (39 | ) | ||||||||||
| Tax Effect of Adjustments | (1 | ) | 14 | (1 | ) | 14 | ||||||||||
| Tax Benefit from Valuation Allowance Release | — | (44 | ) | — | (44 | ) | ||||||||||
| Adjusted Net Income | $ | 78 | $ | 83 | $ | 183 | $ | 170 | ||||||||
| Reconciliation of Reported Net Income Per Diluted Share to Adjusted Net Income Per Diluted Share | ||||||||||||||||
| Reported Net Income Per Diluted Share | $ | 0.30 | $ | 0.68 | $ | 0.79 | $ | 1.06 | ||||||||
| Leadership Transition Costs | 0.07 | — | 0.07 | — | ||||||||||||
| Gain on Sales of Easton Investments | — | (0.18 | ) | — | (0.18 | ) | ||||||||||
| Tax Effect of Adjustments | (0.01 | ) | 0.06 | (0.01 | ) | 0.06 | ||||||||||
| Tax Benefit from Valuation Allowance Release | — | (0.20 | ) | — | (0.19 | ) | ||||||||||
| Adjusted Net Income Per Diluted Share | $ | 0.37 | $ | 0.37 | $ | 0.86 | $ | 0.76 | ||||||||
See Notes to Adjusted Financial Information. | ||||||||||||||||
| BATH & BODY WORKS, INC. | ||||||||
| FORECASTED ADJUSTED FINANCIAL INFORMATION | ||||||||
| (Unaudited) | ||||||||
| (In millions, except per share amounts) | ||||||||
| Full-Year | ||||||||
| 2025 | ||||||||
| Low | High | |||||||
| Reconciliation of Forecasted Net Income Per Diluted Share to Forecasted Adjusted Net Income Per Diluted Share | ||||||||
| Forecasted Net Income Per Diluted Share | $ | 3.28 | $ | 3.53 | ||||
| Leadership Transition Costs, Net of Tax | 0.07 | 0.07 | ||||||
| Forecasted Adjusted Net Income Per Diluted Share | $ | 3.35 | $ | 3.60 | ||||
| Reconciliation of Forecasted Net Cash Provided by Operating Activities to Forecasted Free Cash Flow | ||||||||
| Forecasted Net Cash Provided by Operating Activities | $ | 1,020 | $ | 1,100 | ||||
| Forecasted Capital Expenditures | (270 | ) | (250 | ) | ||||
| Forecasted Free Cash Flow | $ | 750 | $ | 850 | ||||
See Notes to Adjusted Financial Information. | ||||||||
BATH & BODY WORKS, INC.
NOTES TO ADJUSTED FINANCIAL INFORMATION
(Unaudited)
The adjusted financial information should not be construed as an alternative to the results determined in accordance with generally accepted accounting principles. Further, the company’s definitions of adjusted income information may differ from similarly titled measures used by other companies. Management believes that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. While it is not possible to predict future results, management believes the adjusted financial information is useful for the assessment of the operations of the company because the adjusted items are not indicative of the company’s ongoing operations due to their size and nature. Additionally, management uses adjusted financial information as key performance measures for the purpose of evaluating performance internally. The adjusted financial information should be read in conjunction with the company’s historical financial statements and notes thereto contained in the company’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K.
The “Adjusted Financial Information” provided in the attached reflects the following non-GAAP financial measures:
Fiscal 2025
In the second quarter of 2025, adjusted results excludes the following:
- Aggregate pre-tax costs of
$15 million ($14 million net of tax of$1 million ), included in general, administrative and store operating expenses, due to the transition of certain members of the leadership team, primarily related to severance benefits.
There were no adjustments to results in the first quarter of 2025.
Full-year 2025 Forecasted Adjusted Net Income per Diluted Share excludes the adjustment referenced above.
Fiscal 2024
In the second quarter of 2024, adjusted results excludes the following:
- Aggregate pre-tax gains of
$39 million ($25 million net of tax of$14 million ), included in other income, net, related to the sales of certain Easton investments.
- A
$44 million tax benefit related to the release of a valuation allowance on a deferred tax asset.
There were no adjustments to results in the first quarter of 2024.
Forecasted Free Cash Flow
Our Forecasted Free Cash Flow is defined as Forecasted Net Cash Provided by Operating Activities less our Forecasted Capital Expenditures. Our Forecasted Free Cash Flow is a non-GAAP financial measure which we believe is useful to analyze our anticipated ability to generate cash. Our Forecasted Free Cash Flow calculation may not be comparable to similarly-titled measures reported by other companies. Our Forecasted Free Cash Flow should be evaluated in addition to, and not considered a substitute for, other GAAP financial measures.
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