Bath & Body Works (BBWI) Company Report

Bath & Body Works (BBWI) is implementing a "Consumer-First Formula" strategy with four pillars: creating innovative products in core categories, reigniting the brand, winning in the marketplace (including digital expansion), and improving internal efficiency. This follows previous strategies, such as moving into adjacencies, which did not achieve expected growth or new customer acquisition.
The company is focused on significantly improving its digital presence, including a new mobile homepage, native app, enhanced product photography, and establishing an official presence on Amazon to capture market share and address existing grey market sales.
For 2026, BBWI does not expect to return to growth for the full year, with strategic initiatives anticipated to become visible in the first half but having a greater financial impact in the second half.
Management expects stable consumer demand but more headwinds for margins over the next 12 months.

1 day ago

Transcript

Bath & Body Works outlines "Consumer-First Formula" strategy and 2026 outlook

BBWI

Guidance Update

New Projects/Investments

Demand Weakening

Bath & Body Works (BBWI) is implementing a "Consumer-First Formula" under new CEO Daniel Heaf, shifting focus from unsuccessful adjacency investments and excessive promotions back to core categories like home fragrance and body care, which drive 90% of the business's value.
The strategy involves significant investment in product innovation, brand reignition, and expanding market presence, notably by improving its digital experience and entering Amazon to address an estimated $70 million grey market.
The company anticipates $250 million in cost savings over two years to fund these initiatives. However, growth is not expected to return in 2026, and margins are projected to face more headwinds over the next 12 months, despite stable consumer demand.

1 day ago

Transcript

Bath & Body Works Details Strategic Shift and Financial Expectations

BBWI

Guidance Update

New Projects/Investments

Demand Weakening

Bath & Body Works (BBWI) is implementing a "Consumer-First Formula" strategy, shifting focus to its core categories (soaps, sanitizers, body care, home fragrance) which drive 90% of the business, and reducing investment in less successful adjacencies.
The strategy includes reducing promotional activity, improving the digital experience, and capturing an estimated $70 million grey market on Amazon to re-engage customers, particularly the 20-30-year-old female demographic.
To fund these initiatives, the company announced a new fuel for growth program targeting $250 million in savings over two years, with approximately half identified for the first year.
CFO Eva Boratto stated that the company does not expect to return to growth in 2026 and anticipates margin pressures and more headwinds for margins over the next 12 months.

1 day ago

Transcript

Bath & Body Works Updates Q4 and Full-Year 2026 Guidance, Outlines Strategic Turnaround Plan

BBWI

Guidance Update

Profit Warning

New Projects/Investments

Bath & Body Works reported Q3 2026 results below expectations and issued a profit warning by lowering its Q4 2026 diluted EPS guidance to at least $1.70 and full-year 2026 adjusted diluted EPS to at least $2.87.
The company now anticipates Q4 2026 sales to be down high single digits and full-year 2026 net sales to experience a low single-digit decline, reflecting continued challenging consumer sentiment.
CEO Daniel Heaf detailed a strategic turnaround plan, including refocusing on core categories, enhancing digital channels, and expanding into new marketplaces with an Amazon launch expected in the first half of 2026.
To fund these investments, BBWI plans to generate $250 million in cost savings over the next two years, with over half identified for 2026, and projects full-year capital expenditures of $240 million and free cash flow of approximately $650 million.

Nov 20, 2025, 1:30 PM

Transcript

Bath & Body Works Announces Q3 2026 Results and Strategic Plan

BBWI

Earnings

Guidance Update

New Projects/Investments

Bath & Body Works reported Q3 2026 net sales of $1.6 billion, a 1% decrease from the prior year, and adjusted earnings per diluted share of $0.35, both falling below expectations.
The company issued cautious Q4 guidance, anticipating sales to be down high single digits and earnings per diluted share of at least $1.70. Full-year net sales guidance was lowered to a decline of low single digits, and adjusted earnings per diluted share guidance was reduced to at least $2.87.
CEO Daniel Heaf introduced a "consumer-first formula" to address underperformance, focusing on product innovation, brand reignition, winning in the marketplace (including an Amazon launch in the first half of 2026), and operational efficiency. This plan includes $250 million in cost savings over the next two years, with over half targeted for 2026, to be reinvested into revenue-generating activities.
In Q3 2026, BBWI returned $41 million to shareholders through dividends and repurchased 3 million shares for $87 million. Year-to-date, $126 million has been returned through dividends, and 11.5 million shares were repurchased for $343 million. The full-year free cash flow expectation is approximately $650 million.

Nov 20, 2025, 1:30 PM

Transcript

Bath & Body Works Reports Q3 2026 Results and Outlines New Growth Strategy

BBWI

Earnings

Guidance Update

New Projects/Investments

Bath & Body Works reported Q3 2026 net sales of $1.6 billion, a 1% decrease year-over-year, with adjusted earnings per diluted share of $0.35, both below expectations. The gross profit rate declined by 220 basis points to 41.3%, partly due to a $35 million impact from tariffs.
The company is implementing a "consumer-first formula" strategy to revitalize the brand, focusing on reinvesting in core categories and exiting selective categories like hair and men's grooming starting in the first half of 2026.
As part of its market expansion, Bath & Body Works plans to launch on Amazon in the first half of 2026 with a curated assortment to attract new consumers.
The strategy is supported by planned cost savings of $250 million over the next two years, with over half identified for 2026, which will be reinvested into revenue-generating activities. Management anticipates 2026 will be a year of investment and expects the strategy to take time to impact financial performance.

Nov 20, 2025, 1:30 PM

Transcript

Bath & Body Works Announces Q3 2025 Results and Lowers Full-Year Guidance

BBWI

Earnings

Guidance Update

Demand Weakening

Bath & Body Works, Inc. reported third-quarter 2025 net sales of $1.6 billion, a 1% decrease compared to the prior year, with earnings per diluted share of $0.37 and adjusted earnings per diluted share of $0.35.
The company launched a "Consumer First Formula" strategic transformation plan, targeting $250 million in cost savings over two years, with over half identified for 2026.
Bath & Body Works lowered its Q4 and full-year 2025 guidance, now expecting Q4 net sales to be down high single digits and full-year net sales to decline by low single digits.
For full-year 2025, the company expects earnings per diluted share of at least $2.83 (adjusted EPS of at least $2.87) and anticipates generating approximately $650 million in free cash flow, including $400 million deployed for share repurchases.

Nov 20, 2025, 12:14 PM

8-K

Bath & Body Works Outlines Growth Strategy and Operational Priorities for FY 2025

BBWI

CEO Change

New Projects/Investments

Revenue Acceleration/Inflection

Bath & Body Works' new CEO, Daniel Heath, appointed in May 2025, is focused on achieving mid-single-digit growth and margin expansion by acquiring new consumers.
Key strategic initiatives ("no-regret moves") include elevating digital capabilities with upcoming app and mobile web relaunches, improving product efficacy messaging on packaging, and expanding into new distribution channels, such as 600 college bookstores.
Operationally, the company plans to reallocate capital to growth drivers without diluting its nearly 20% operating margins, thoughtfully reduce promotions, and continue its real estate shift towards 75% off-mall locations.
The supply chain is largely U.S. sourced (80%), helping mitigate tariff impacts, and inventory is expected to be up in the second half of FY 2025.

Sep 3, 2025, 2:00 PM

Bath & Body Works Reports Q2 2026 Results and Raises Full-Year EPS Guidance

BBWI

Earnings

Guidance Update

Share Buyback

Bath & Body Works reported Q2 2026 net sales of $1.5 billion, an increase of 1.5% year-over-year, and adjusted earnings per diluted share of $0.37, both at the high end of their guidance range. For fiscal year 2025, the company narrowed its net sales growth guidance to 1.5% to 2.7% and raised the low end of its adjusted earnings per diluted share guidance to $3.35 to $3.60.
The company increased its planned full-year share repurchases from $300 million to $400 million, having already repurchased 8.5 million shares for $256 million year-to-date.
Strategic initiatives include elevating the digital platform, amplifying product efficacy messaging, and exploring new distribution channels, such as the recent entry into over 600 college bookstores to reach 7 million young consumers. The company aims to return to mid-single digit to high-single digit growth.
Tariffs are expected to negatively impact gross profit by approximately $85 million for the full year, with $40 million of that impact anticipated in Q3 2026.

Aug 28, 2025, 10:58 PM

Earnings Transcripts

Quarterly earnings call transcripts for Bath & Body Works.

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