Bath & Body Works, Inc. (NYSE:BBWI) reported fourth-quarter results that came in above analyst forecasts, although the company warned that sales could decline in 2026 as it continues to reshape its business.
The home fragrance retailer posted adjusted earnings per share of $2.05 for the quarter ended January 31, exceeding the analyst consensus estimate of $1.75 by $0.30. Revenue totaled $2.7 billion, ahead of the $2.6 billion forecast, though down 2% year over year from $2.8 billion in the same period last year. The company said the quarter benefited from faster product innovation and the earlier-than-expected launch of its products on Amazon.
Shares rose 3.1% following the results.
Looking ahead to fiscal 2026, Bath & Body Works projected adjusted earnings per share in a range of $2.40 to $2.65. The midpoint of $2.53 falls below the analyst consensus estimate of $2.59. The company also expects net sales to decline between 4.5% and 2.5% from the $7.3 billion recorded in fiscal 2025.
For the first quarter, Bath & Body Works forecasts adjusted earnings per share between $0.24 and $0.30, compared with $0.49 in the first quarter of 2025. Net sales are expected to drop between 6% and 4%.
“We are making progress, but transformations of this scale take time,” said Chief Executive Officer Daniel Heaf. “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.”
For the full fiscal year 2025, the company reported adjusted earnings per share of $3.21, compared with $3.29 in 2024. Net sales totaled $7.3 billion, representing a 0.2% decline from the previous year.