Bath & Body Works Inc
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.82%.
Did BBWI Beat Earnings? Q4 2026 Results
Bath & Body Works closed out its fiscal fourth quarter with a clear beat on both top and bottom lines, delivering adjusted earnings of $2.05 per share against a consensus estimate of $1.77, a 15.80% positive surprise, while revenue of $2.72 billion edged past the $2.61 billion forecast by 4.23%. The results nonetheless reflected a business still navigating headwinds, with net sales slipping 2.3% year over year as domestic store and direct channels each declined roughly 2.5%, offset only partially by an 8.6% surge in international revenue to $91 million. A key factor shaping the quarter was CEO Daniel Heaf's ongoing "Consumer First Formula" transformation, which included an earlier-than-planned Amazon launch and a new brand identity rollout. Institutional investors appear to be watching closely, with several funds recently increasing their BBWI stakes. Looking ahead, management guided fiscal 2026 adjusted EPS to $2.40 to $2.65, well below fiscal 2025's $3.21, as the company continues absorbing transformation costs while targeting roughly $600 million in free cash flow.
- Q4 results exceeded company guidance
- International segment grew 8.6% in Q4
- Consumer First Formula launched in Q3 driving innovation, brand refresh, and distribution expansion
- Earlier-than-planned launch on Amazon marketplace
- Rollout of new brand identity
- Full-year operating cash flow increased to $1,102 million from $886 million
“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
Forward Guidance & Outlook
For fiscal 2026, Bath & Body Works expects net sales to decline 4.5% to 2.5% from $7,291 million in fiscal 2025. Full-year 2026 GAAP EPS is forecast 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 outlook includes interest savings from redeeming the remaining $284 million of January 2027 bonds and no share repurchases. Free cash flow is expected to be approximately $600 million. For Q1 2026, net sales are expected to decline 4% to 6%, with GAAP EPS of $0.84 to $0.90 and adjusted EPS of $0.24 to $0.30. The 2026 results are expected to include an $88 million pre-tax gain from payment card interchange fee litigation settlement, a $62 million tax benefit from resolution of certain tax matters, and a $9 million pre-tax loss from bond redemption.
BBWI YoY Financials
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.