Bath & Body Works shares rise as Q4 beats estimates

Investing.com -- Bath & Body Works, Inc. (NYSE: BBWI) reported fourth-quarter results that exceeded analyst expectations, though the company projected weaker sales for 2026 as it undergoes a business transformation.

The home fragrance retailer posted adjusted earnings per share of $2.05 for the fourth quarter ended January 31, beating the analyst consensus of $1.75 by $0.30. Revenue reached $2.7 billion, topping the estimate of $2.6 billion, though down 2% YoY from $2.8 billion in the prior-year period. The company attributed the quarter's performance to accelerated innovation and the earlier-than-planned launch on Amazon.

Shares rose 3.1% following the announcement.

For fiscal 2026, Bath & Body Works issued guidance for adjusted earnings per share of $2.40 to $2.65, with a midpoint of $2.53 that falls below the analyst consensus of $2.59. The company expects net sales to decline between 4.5% to 2.5% compared to $7.3 billion in fiscal 2025. For the first quarter, the company forecasts adjusted earnings per share of $0.24 to $0.30, compared to $0.49 in the first quarter of 2025, with net sales expected to decline 6% to 4%.

"We are making progress, but transformations of this scale take time," said Daniel Heaf, chief executive officer. "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 year 2025, the company reported adjusted earnings per share of $3.21, compared to $3.29 in 2024. Net sales were $7.3 billion, down 0.2% from the prior year.

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