Bath & Body Works (BBWI) Q3 2025 earnings

Bath and Body Works Inc. Shares fell on Thursday after the company reported “disappointing” third-quarter earnings and lowered its full-year outlook, citing “macro consumer pressures.”

Shares tumbled nearly 25% on Thursday, hitting a new 52-week low. The stock has lost more than 50 percent of its value this year.

CEO Daniel Heaf announced a turnaround plan aimed at attracting younger consumers and shifting the company’s focus to its core products, with expectations of $250 million in cost savings for the company by 2027.

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

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

• Earnings per share: 35 cents adjusted, 39 cents expected
• Revenues: 1.59 billion dollars, while the expectation was 1.63 billion dollars

Bath & Body reported net income of $77 million, or 37 cents per share, for the quarter ended Nov. 1, compared to $106 million, or 49 cents per share, last year. Adjusting for one-time items, including pre-tax earnings, the company reported earnings of 35 cents per share.

The company also lowered its annual target due to “current business trends.” It also expects fourth-quarter revenue to decline in the high single digits, compared to Wall Street forecasts for a 1.5% increase. Taking into account “recent negative macro consumer sentiment” and tariff impacts, the guidance also revised its full-year net sales forecast to low single digits.

Heaf said the company is reorienting its strategy to once again focus on core products such as body care, fragrances and soaps. Called the “Consumer First Formula,” the plan includes four strategic priorities: creating disruptive and innovative products, revitalizing the brand, winning in the market, and operating with speed and efficiency.

The company had previously tried to launch other products such as laundry detergent and shampoo, but its efforts did not produce promising results or attract younger consumers, Heaf said on a call with analysts Thursday.

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

“Over the years, consumers have evolved. They are looking for more efficiencies, ingredient-driven products, modern packaging, emotional storytelling and enhanced omnichannel experiences,” Heaf said. “Our competitors have risen to meet these needs. We have failed to do so.”

The company also hires influencers to “ignite social excitement” around the company’s products to attract the attention of new consumers, Heaf said on the call.

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