Bath & Body Works (BBWI) Q3 2025 earnings

Bath and Body Works Company The stock fell Thursday after the company reported “disappointing” third-quarter earnings and lowered its full-year forecast, citing “overall consumer pressures.”

Shares fell nearly 25% on Thursday and hit a new 52-week low. The stock is down more than 50% this year.

CEO Daniel Heff announced a turnaround plan for the company, with expectations of $250 million in cost savings by 2027, aimed at attracting younger consumers and refocusing the company on its core products.

“Our third-quarter results were below expectations, and we are lowering our forecasts for the remainder of the year to reflect current business trends and continued recent macro consumer pressures,” Hef said in a statement. “While this is disappointing, we are moving quickly and decisively to position the business for long-term sustainable growth.”

Here’s how the company performed in the third quarter, compared to Wall Street estimates, according to a survey of analysts conducted by LSEG:

• EPS: 35 cents were revised versus 39 cents expected
• profit: $1.59 billion versus $1.63 billion expected

Bath & Body reported net income of $77 million, or 37 cents per share, for the quarter ended Nov. 1 compared with $106 million, or 49 cents per share, a year ago. After adjusting one-time items and including pre-tax gains, the company reported earnings of 35 cents per share.

The company also lowered its annual guidance due to “current business trends.” It also expects fourth-quarter revenue to decline by high single digits compared to Wall Street estimates for a 1.5% increase. This guidance, based on “recent negative overall consumer sentiment” and the effects of tariffs, also revised full-year net sales guidance to the low single digits.

Heff said the company is redirecting its strategy to focus again on core products such as body care, perfumes and soaps. The plan, called the “Consumer First Formula,” includes four strategic priorities: creating innovative and innovative products, reviving the brand, winning in the market, and operating quickly and efficiently.

The company had previously considered offering other products such as laundry detergent and shampoo, but Hef said in a call with analysts on Thursday that its efforts had not achieved promising results or attracted younger consumers.

Heff said the company will exit certain categories such as hair care and men’s care as it refocuses its priorities.

“Over the years, consumers have evolved. They are looking for greater efficacy, ingredient-based products, modern packaging, emotional storytelling and elevated omnichannel experiences,” Heff said. “Our competitors have risen to meet those needs. We have not.”

The company is also recruiting influencers to “build social buzz” around the company’s products in an effort to attract the attention of new consumers, Hef said on the call.

Bath & Body Works also plans to revamp its app and website to increase engagement and aid in product discovery. The company will also lower the free shipping limit in early 2026.