Bath & Body Works has reported a drop in fourth-quarter (Q4) sales and profit and issued guidance pointing to lower revenue in fiscal 2026 (FY26).
For Q4 FY25, net sales totalled $2.72bn, down 2% from $2.78bn a year earlier.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
For the quarter ended 31 January 2026, earnings per diluted share were $1.99, compared with $2.09 last year.
Operating income declined to $599m from $678m while net income fell to $403m from $453m.
The company said the quarter’s reported results included $15m in pre-tax costs tied to business transformation activities.
Excluding this item, adjusted earnings per diluted share were $2.05, adjusted operating income was $614m, and adjusted net income was $415m.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBath & Body Works CEO Daniel Heaf said: “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 modernise our brand, expand distribution, and simplify our operating model.
“We are making progress, but transformations of this scale take time. We are undertaking a comprehensive, end-to-end evolution of our business – building a Bath & Body Works that is more innovative, more relevant, and easier to shop. This work lays the foundation for sustained, long-term growth as we reposition the company from a speciality retailer to a premier global brand.”
For the year ended 31 January 2026, Bath & Body Works reported net sales of $7.29bn, a 0.2% decrease from $7.31bn in the year ended 1 February 2025.
Full-year earnings per diluted share were $3.11, down from $3.61 in 2024.
Operating income came in at $1.13bn compared with $1.26bn last year, and net income was $649m versus $798m.
Looking ahead, the retailer forecasts FY26 net sales will decline by between 4.5% and 2.5% compared with $7.29bn in FY25.
Full-year earnings per diluted share are expected to range from $3 to $3.25, versus $3.11 in FY25, and the company said it expects to generate $600m in free cash flow.
For Q1 FY26, Bath & Body Works projects net sales will fall between 6% and 4% compared with $1.42bn in Q1 FY25.
First-quarter earnings per diluted share are forecast at $0.84 to $0.90, compared with $0.49 in the first quarter of 2025.
