Bath & Body Works (BBWI) Q3 2025 Earnings
Excludes an $8 million pre-tax gain ($6 million after-tax) on the sale of a non-core asset
How Did BBWI Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +5.43%.
Did BBWI Beat Earnings? Q3 2025 Results
No. Bath & Body Works reported Q3 2025 earnings of $0.35 a share on Nov 20, 2025, missing the $0.40 consensus estimate by 11.9%. Revenue was $1.6B against a $1.6B estimate.
Bath & Body Works delivered a disappointing third quarter, missing on both the top and bottom lines as softening consumer demand and margin pressure weighed on results. Adjusted EPS came in at $0.35, falling roughly 11.88% short of the $0.40 consensus estimate and down sharply from $0.49 a year ago, while net sales slipped 1.0% year-over-year to $1.59 billion, missing the $1.63 billion Wall Street had expected. The shortfall was driven in part by a contraction in gross profit to $658 million from $700 million a year ago, as cost pressures mounted and the direct digital channel fell 7.0% to $299 million. Against that backdrop, new CEO Daniel Heaf unveiled a sweeping "Consumer First Formula" transformation plan targeting $250 million in cost savings over two years, with an intent to refocus on core products and attract younger consumers. The company also slashed its full-year outlook, now guiding for a low single-digit sales decline versus prior expectations of 1.5% to 2.7% growth, with adjusted EPS of at least $2.87 versus $3.29 in fiscal 2024, citing negative macro sentiment and current tariff headwinds.
- U.S. and Canada stores sales grew 0.2% year-over-year
- International sales grew 6.1% year-over-year
- Direct digital channel declined 7.0% year-over-year
- Gross margin compression from higher costs of goods sold, buying and occupancy
- Higher general, administrative and store operating expenses
- Lower interest expense of $68 million vs $77 million year-over-year
“Today, we are excited to announce a comprehensive transformation plan to revitalize Bath & Body Works across brand, product, and marketplace. This plan, the Consumer First Formula, focuses our investments in our four largest revenue driving opportunities - creating disruptive and innovative product, reigniting our brand, winning in the marketplace, and operating with speed and efficiency. These initiatives aim to attract new, younger consumers to the brand and unlock our next era of growth.”
Bath & Body Works CEO, on the earnings call
What Was Bath & Body Works's Outlook in Q3 2025?
The company lowered its full-year 2025 guidance significantly. Full-year net sales are now expected to decline low single digits (previously guided to 1.5%–2.7% growth) versus $7,307 million in fiscal 2024. Full-year GAAP EPS is expected to be at least $2.83 and adjusted EPS at least $2.87, compared to $3.61 and $3.29 respectively in fiscal 2024. Q4 2025 net sales are expected down high single digits versus $2,788 million in Q4 2024, with Q4 EPS of at least $1.70 versus $2.09 last year. Guidance reflects continuation of negative macro consumer sentiment weighing on purchase intent and the anticipated impact of all tariff rates currently in effect. The company expects to generate approximately $650 million in free cash flow for full-year 2025, supported by forecasted operating cash flow of $890 million less $240 million in capital expenditures. The company has plans to deliver $250 million in cost savings over two years, with over half identified for 2026.
BBWI YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.6B | $1.6B | −1.0% |
| Gross Profit | $658.0M | $700.0M | −6.0% |
| Operating Income | $161.0M | $218.0M | −26.2% |
| Net Income | $77.0M | $106.0M | −27.4% |
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.