US speciality retailer Bath & Body Works has reported a slight dip in third quarter (Q3) 2025 sales and lower profits, while trimming its full-year outlook and setting out a new multi-year strategic plan.
For the quarter ended 1 November 2025, net sales came in at $1.59bn, down 1% from $1.6bn in the same period of 2024.
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Earnings per diluted share were $0.37, compared with $0.49 a year earlier.
Operating income fell to $161m from $218m, while net income declined to $77m from $106m in the same quarter of the previous year.
The reported figures include an $8m pre-tax gain ($6m after tax) from the sale of a non-core asset.
Looking ahead to the final quarter of the financial year, Bath & Body Works expects net sales to decline in the high single-digit range versus the $2.78bn recorded in Q4 2024.
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By GlobalDataQ4 2025 earnings per diluted share are forecast to be at least $1.7, down from $2.09 in Q4 2024.
The company’s fourth-quarter guidance “reflects the continuation of recent negative macro consumer sentiment weighing heavily on consumers’ purchase intent”.
The outlook also incorporates “the anticipated impact of all tariff rates currently in effect and levied by the US government and other countries”.
Bath & Body Works has also revised its full-year 2025 guidance. It now expects net sales to decline in the low single digits, compared with previous guidance for growth of between 1.5% and 2.7% against fiscal 2024 revenue of $7.3bn.
Full-year 2025 earnings per diluted share are now projected to be at least $2.83, down from $3.61 in fiscal 2024.
The company now expects to generate approximately $650m in free cash flow for the full year.
CEO Daniel Heaf commented: “Our third quarter results were below expectations, and we are lowering our outlook for the remainder of the year reflecting current business trends and continuation of recent macro consumer pressures.
“While this is disappointing, we are acting swiftly and decisively to position the business for sustainable, long-term growth. Consumers will begin to see the benefits of these changes in the coming quarters, though it will take time for the impact to be reflected in our financial performance.”
Alongside its results and outlook, Bath & Body Works unveiled a new strategic framework to support long-term growth, which it describes as its “Consumer First Formula”. The plan is organised around four key priorities.
The first concentrates on reinforcing the retailer’s product capabilities. Bath & Body Works intends to “reestablish product leadership” by focusing on innovation in its main categories: body care, home fragrance, soaps and sanitisers.
The second priority is aimed at revitalising and refining the brand’s market presence. The company will pursue “more targeted brand moments and deeper creator advocacy” and plans to develop enduring fragrance platforms centred on signature scents.
The third focuses on expanding the company’s market position. Bath & Body Works will continue to enhance both its online and store environments, while extending its reach with additional wholesale relationships and new marketplace channel opportunities.
The fourth addresses operational changes designed to raise speed and efficiency. The company aims to “transform Bath & Body Works to be a faster and more efficient organisation” by accelerating decision-making and strengthening its agile operating model.
The retailer is targeting $250m in cost savings over two years, with more than half that amount already allocated to 2026.
Heaf stated: “This plan, the Consumer First Formula, focuses our investments in our four largest revenue driving opportunities – creating disruptive and innovative product, reigniting our brand, winning in the marketplace and operating with speed and efficiency.
“These initiatives aim to attract new, younger consumers to the brand and unlock our next era of growth.”
