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Bath & Body Works, Inc. (NYSE: BBWI) has released its third-quarter results for 2025, revealing a performance that fell short of expectations. The company also introduced a strategic plan aimed at long-term growth. The report highlights the company’s current financial situation and provides guidance for the future.
 

Sales and EPS Decline as Q3 Results Miss Expectations

In the third quarter of 2025, Bath & Body Works reported net sales of $1.6 billion, representing a 1% decrease from the same period last year. The company recorded earnings per diluted share of $0.37, with adjusted earnings per share at $0.35. This performance fell short of analysts’ expectations, which had anticipated earnings per share of $0.40 and revenue of $1.63 billion.

Despite the shortfall, Bath & Body Works remains optimistic about its strategic transformation plan, dubbed the Consumer First Formula. This initiative focuses on four key areas: product innovation, brand revitalization, market expansion, and operational efficiency. The company aims to attract a younger consumer base and stimulate long-term growth through these efforts.

CEO Daniel Heaf expressed confidence in the company’s enduring strengths, including its iconic brand and robust business model. However, he acknowledged the challenges posed by current macroeconomic pressures, which have impacted consumer spending. The company is taking decisive steps to address these issues and position itself for sustainable growth.
 

Lowered Guidance Signals Ongoing Pressure into Q4 and 2026

Looking ahead, Bath & Body Works has adjusted its guidance for the fourth quarter and full-year 2025. The company now expects fourth-quarter net sales to decline by high single digits compared to the previous year, with earnings per diluted share projected to be at least $1.70, down from $2.09 in 2024. This revision reflects continued negative consumer sentiment and the impact of existing tariff rates.

For the full year, the company anticipates a decline in net sales, revising its growth projection from 1.5% to 2.7% to a decline in low single digits. Full-year earnings per diluted share are expected to be at least $2.83, compared to $3.61 in 2024. Adjusted earnings per share are forecasted to be at least $2.87, down from $3.29 in the previous year.

The strategic transformation plan is expected to drive future growth, with a focus on cost savings and reinvestment in revenue-generating initiatives. Bath & Body Works aims to achieve $250 million in cost savings over the next two years, with the majority realized in 2026. These efforts are intended to fund investments in product and brand development, aligning with the company’s long-term growth objectives.

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