Bath & Body Works posts softer Q3, cuts outlook and revamps strategy

US speciality retailer Bath & Body Works has reported a flimsy dip successful 3rd 4th (Q3) 2025 income and little profits, portion trimming its full-year outlook and mounting retired a caller multi-year strategical plan.

For the 4th ended 1 November 2025, nett income came successful astatine $1.59bn, down 1% from $1.6bn successful the aforesaid play of 2024.

Earnings per diluted stock were $0.37, compared with $0.49 a twelvemonth earlier.

Operating income fell to $161m from $218m, portion nett income declined to $77m from $106m successful the aforesaid 4th of the erstwhile year.

The reported figures see an $8m pre-tax summation ($6m aft tax) from the merchantability of a non-core asset.

Looking up to the last 4th of the fiscal year, Bath & Body Works expects nett income to diminution successful the precocious single-digit scope versus the $2.78bn recorded successful Q4 2024.

Q4 2025 net per diluted stock are forecast to beryllium astatine slightest $1.7, down from $2.09 successful Q4 2024.

The company's fourth-quarter guidance “reflects the continuation of caller antagonistic macro user sentiment weighing heavy connected consumers’ acquisition intent”.

The outlook besides incorporates “the anticipated interaction of each tariff rates presently successful effect and levied by the US authorities and different countries”.

Bath & Body Works has besides revised its full-year 2025 guidance. It present expects nett income to diminution successful the debased azygous digits, compared with erstwhile guidance for maturation of betwixt 1.5% and 2.7% against fiscal 2024 gross of $7.3bn.

Full-year 2025 net per diluted stock are present projected to beryllium astatine slightest $2.83, down from $3.61 successful fiscal 2024.

The institution present expects to make astir $650m successful escaped currency travel for the afloat year.

CEO Daniel Heaf commented: “Our 3rd 4th results were beneath expectations, and we are lowering our outlook for the remainder of the twelvemonth reflecting existent concern trends and continuation of caller macro user pressures.

“While this is disappointing, we are acting swiftly and decisively to presumption the concern for sustainable, semipermanent growth. Consumers volition statesman to spot the benefits of these changes successful the coming quarters, though it volition instrumentality clip for the interaction to beryllium reflected successful our fiscal performance.”

Alongside its results and outlook, Bath & Body Works unveiled a caller strategical model to enactment semipermanent growth, which it describes arsenic its “Consumer First Formula”. The program is organised astir 4 cardinal priorities.

The archetypal concentrates connected reinforcing the retailer’s merchandise capabilities. Bath & Body Works intends to “reestablish merchandise leadership” by focusing connected innovation successful its main categories: assemblage care, location fragrance, soaps and sanitisers.