Bath & Body Works Inc
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.43%.
Did BBWI Beat Earnings? Q3 2026 Results
Bath & Body Works delivered a bruising third quarter, missing on both the top and bottom lines as new CEO Daniel Heaf simultaneously unveiled a sweeping turnaround strategy to arrest the retailer's slide. Adjusted EPS came in at $0.35, falling 11.88% short of the $0.40 consensus estimate, while net sales slipped 1.0% year-over-year to $1.59 billion, trailing the $1.63 billion analysts had expected. The weakness was concentrated in the digital channel, where U.S. and Canadian direct sales dropped 7.0% to $299.00 million, even as international franchise revenue rose 6.1% to $73.00 million. Heaf's "Consumer First Formula" centers on product innovation, brand revitalization, wholesale expansion, and $250.00 million in cost savings over two years, but the plan could not prevent a sharp guidance cut; full-year 2025 net sales are now expected to post a low single-digit decline versus $7.31 billion in fiscal 2024, with adjusted EPS of at least $2.87. Shares plunged following the report, drawing scrutiny from securities law firms investigating potential investor losses.
- Negative macro consumer sentiment weighing on purchase intent
- Direct - U.S. and Canada channel declined 7.0% year-over-year
- International segment grew 6.1% year-over-year
- Stores - U.S. and Canada essentially flat at 0.2% growth
- Tariff impacts factored into outlook
“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
Forward Guidance & Outlook
The company significantly lowered guidance for Q4 and full-year 2025. Q4 2025 net sales are expected to decline high single digits versus $2,788 million in Q4 2024, with Q4 EPS of at least $1.70 (vs. $2.09 prior year). Full-year 2025 net sales guidance was revised from 1.5%–2.7% growth to a low single-digit decline versus $7,307 million in fiscal 2024. Full-year 2025 EPS is expected to be at least $2.83 (GAAP) and at least $2.87 (adjusted), compared to $3.61 and $3.29 respectively in fiscal 2024. Free cash flow is expected to be approximately $650 million for the full year. Guidance reflects continuation of negative macro consumer sentiment, tariff impacts, and approximately $400 million of share repurchases. The company plans to deliver $250 million in cost savings over two years, with over half identified for 2026.
BBWI YoY Financials
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.