Bath & Body Works (BBWI) released its third-quarter results for fiscal year 2025, signaling a performance below market expectations. The company also unveiled a strategic plan aiming to boost long-term growth. This report provides insight into the company’s current financial standing and outlines future projections.
Sales and EPS Decline as Q3 Results Miss Forecasts
Bath & Body Works reported net sales of $1.6 billion for the third quarter of 2025, a decrease of 1% compared to the same period in the previous year. Earnings per diluted share came in at $0.37 with adjusted earnings per share at $0.35. Analysts had anticipated higher earnings per share ($0.40) and revenue ($1.63 billion).
Despite the shortfall, Bath & Body Works remains optimistic about its Consumer First Formula initiative. This strategy focuses on product innovation, brand revitalization, market expansion, and operational efficiency to attract a younger consumer base and fuel long-term growth.
CEO Daniel Heaf expressed confidence in the company’s legacy brand and robust business model but acknowledged the impact of current macroeconomic pressures on consumer spending. The company is implementing decisive measures to address these challenges and position itself for sustainable growth.
Lowered Guidance Signals Continued 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 anticipates a decline in fourth-quarter net sales by high single digits compared to the previous year and earnings per diluted share projected to be at least $1.70, down from $2.09 in 2024. This adjustment reflects continued negative consumer sentiment and the impact of existing tariff rates.
For the full year, the company now projects a decline in net sales, revising its growth projection from 1.5% to 2.7% down to low single digits. Adjusted earnings per share are also expected to be at least $2.83, down from $3.29 in 2024.
The strategic transformation plan is expected to drive future growth through cost savings and reinvestment in revenue-generating initiatives. Bath & Body Works aims to achieve $250 million in cost savings over the next two years. This funding will support investment in product and brand development, supporting long-term growth objectives.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
This article first appeared on Tokenist.