Bath & Body Works’ (BBWI) stock is down 15% after the company cut its full-year sales guidance and posted weak quarterly financial results.
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The Columbus, Ohio-based retailer reported third-quarter earnings per share (EPS) of $0.35, which was below the $0.40 that analysts had forecast for the company. Revenue of $1.60 billion was slightly below Wall Street’s expectation of $1.63 billion.
Along with its latest financial results, Bath & Body Works unveiled its new “Consumer First” strategic plan. Bath & Body Works’ management team said that it plans to deliver $250 million in cost savings over two years, with more than half of those savings expected in 2026.
Bath & Body Works’ Product Refresh
Bath & Body Works said its revitalization strategy revolves around four priorities: refreshing products, reigniting the brand through storytelling, expanding digital sales, and new wholesale channels. It’s hoped that these steps will improve speed and efficiency across the retailer.
In terms of guidance, Bath & Body Works said that it now expects fourth-quarter 2025 sales to fall at a high-single-digit rate from last year’s $2.79 billion, with earnings per share of $1.70. That outlook is well below Wall Street estimates of $2.18 in earnings per share. Management said negative consumer sentiment and tariff impacts are hurting its business.
Is BBWI Stock a Buy?
Bath & Body Works’ stock has a consensus Moderate Buy rating among 12 Wall Street analysts. That rating is based on seven Buy and five Hold recommendations issued in the last three months. The average BBWI price target of $35.05 implies 66.59% upside from current levels. These ratings could change after the company’s financial results.
