Bath & Body Works (BBWI) Q4 2025 Earnings
Excludes $15 million pre-tax ($12 million after tax) in business transformation costs related to the Consumer First Formula, primarily severance benefits
How Did BBWI Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: −3.82%.
Did BBWI Beat Earnings? Q4 2025 Results
Yes. Bath & Body Works reported Q4 2025 earnings of $2.05 a share on Mar 4, 2026, beating the $1.77 consensus estimate by 15.8%. Revenue was $2.7B against a $2.6B estimate.
Bath & Body Works delivered a stronger-than-expected fourth quarter, posting adjusted EPS of $2.05 against a consensus estimate of $1.77, a beat of 15.80%, even as the business continues to navigate meaningful top-line pressure. Revenue of $2.72 billion topped estimates by 4.23%, though it still fell 2.3% from a year ago, with U.S. and Canada stores and direct e-commerce both declining roughly 2.5%, while international sales rose 8.6% to offer a partial offset. The quarter absorbed $15 million in pre-tax business transformation costs tied to the Consumer First Formula initiative, primarily severance, reflecting the scope of the restructuring underway under CEO Daniel Heaf. Institutional investors have taken notice of the strategic pivot, with several funds recently adding to positions. The forward picture, however, remains cautious: Bath & Body Works guided fiscal 2026 net sales to decline between 2.5% and 4.5%, with adjusted EPS of $2.40 to $2.65, a step down from fiscal 2025's adjusted $3.21, as the company warns that its transformation into a premier global brand will take time.
- Q4 results exceeded company guidance
- International revenue grew 8.6% in Q4
- Earlier-than-planned launch on Amazon
- Store count expanded to 1,927 company-operated and 573 partner-operated international locations
“Our fourth quarter results exceeded the guidance we provided. Since launching the Consumer First Formula in the third quarter, we have moved with urgency to accelerate innovation in our hero categories, refresh and modernize our brand, expand distribution, and simplify our operating model. The earlier-than-planned launch on Amazon and the rollout of our new brand identity are clear examples of our team's focused execution.”
Bath & Body Works CEO, on the earnings call
What Was Bath & Body Works's Outlook in Q4 2025?
For fiscal 2026, Bath & Body Works expects net sales to decline 4.5% to 2.5% compared to $7,291 million in fiscal 2025. Full-year GAAP EPS is guided at $3.00 to $3.25, while adjusted EPS is expected to be $2.40 to $2.65 (compared to adjusted $3.21 in fiscal 2025). The guidance includes interest savings from redeeming $284 million of January 2027 bonds and assumes no share repurchases. Free cash flow is expected at approximately $600 million. For Q1 2026, net sales are expected to decline 6% to 4% vs. $1,424 million in Q1 2025, with GAAP EPS of $0.84 to $0.90 and adjusted EPS of $0.24 to $0.30. FY2026 GAAP results are expected to include an $88 million pre-tax interchange fee settlement gain, a $62 million tax benefit from resolution of certain tax matters, and a $9 million pre-tax loss on debt extinguishment.
BBWI YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.7B | $2.8B | −2.3% |
| Gross Profit | $1.2B | $1.3B | −4.4% |
| Operating Income | $599.0M | $678.0M | −11.7% |
| Net Income | $403.0M | $453.0M | −11.0% |
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.