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Jan 31
Bath & Body Works Q4 2025 Earnings Report
Bath & Body Works reported slightly lower Q4 2025 sales and earnings year over year but still delivered results above its guidance as the company continues executing its Consumer First Formula transformation.
Key Takeaways
Bath & Body Works generated fourth quarter net sales of 2724000000, down slightly from the prior year, while net income declined to 403000000 and operating income decreased to 599000000. Despite the year-over-year decline, the company exceeded its internal guidance and continued executing strategic initiatives focused on brand modernization, innovation, and distribution expansion.
Fourth quarter revenue declined slightly year over year to 2724000000.
Net income was 403000000 compared with 453000000 in the prior year period.
Operating income decreased to 599000000 from 678000000 a year earlier.
Adjusted earnings per diluted share reached 2.05, exceeding company guidance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Bath & Body Works expects fiscal 2026 net sales to decline modestly with earnings projected in a range around prior-year levels while the company continues executing its transformation strategy and investing in brand and distribution expansion.
Positive Outlook
- Full-year 2026 EPS expected between 3.00 and 3.25.
- Adjusted EPS guidance between 2.40 and 2.65.
- Company expects to generate approximately 600000000 in free cash flow.
- Expansion into new channels including Amazon distribution.
- Ongoing brand modernization and product innovation initiatives.
Challenges Ahead
- Full-year 2026 net sales expected to decline between 4.5% and 2.5%.
- Transformation activities continue to generate restructuring costs.
- Retail traffic and consumer demand remain uncertain.
- Operating income declined year over year in Q4.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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