Bath & Body Works (BBWI) Outlines Strategic Transformation For Sustainable Growth And Announces 2025 Third Quarter Earnings Results

Bath & Body Works, Inc. (BBWI) today announced its financial results for the most recent quarter, reporting revenue of $1.594 billion. The company met analysts’ expectations for both revenue and earnings per share, reflecting a stable performance in a competitive retail environment. As consumers continue to seek out personal care and home fragrance products, Bath & Body Works remains well-positioned to capitalize on these trends.

Key Highlights:

• Bath & Body Works launched the “Consumer First Formula,” focusing on four strategic priorities for sustainable growth.
• Third-quarter net sales were reported at $1.6 billion, a decrease of 1% from the previous year.
• Earnings per diluted share were $0.37, with adjusted earnings per diluted share at $0.35.
• The company lowered its Q4 and full-year 2025 guidance due to current business trends and macro consumer pressures.
• CEO Daniel Heaf expressed confidence in the company’s strengths and the potential for future growth despite recent challenges.

In the third quarter of 2025, Bath & Body Works reported net sales of $1.6 billion, reflecting a slight decline of 1% compared to the same period last year. The company’s earnings per diluted share were $0.37, with adjusted earnings per diluted share at $0.35. CEO Daniel Heaf announced a comprehensive transformation plan called the “Consumer First Formula,” which aims to revitalize the brand through four key priorities: creating innovative products, reigniting the brand, winning in the marketplace, and operating with greater efficiency. He emphasized the importance of attracting younger consumers and unlocking new growth opportunities.

Despite the disappointing quarterly results, Heaf remains optimistic about the company’s future, stating, “I am confident in Bath & Body Works’ bright future and the immense opportunity in front of us.” The company has revised its guidance for the fourth quarter and full-year 2025, anticipating a decline in net sales and earnings per share due to ongoing macroeconomic pressures. The strategic initiatives outlined in the Consumer First Formula are expected to position Bath & Body Works for sustainable long-term growth, with plans to achieve $250 million in cost savings over the next two years to fund these initiatives.

Bath & Body Works, Inc. (BBWI) has experienced a notable decline in its stock price, with a staggering 36.44% drop over the past six months and a 29.07% decrease year-over-year. Despite this downturn, the company’s price-to-earnings ratio stands at a remarkably low 6.24, suggesting that the stock may be undervalued relative to its earnings potential. The impressive two-year compound annual growth rate (CAGR) of 51.22% in earnings per share indicates that the company has been able to generate significant profit growth, even as revenue has faced a slight decline of 0.52% over the same period. Furthermore, Bath & Body Works boasts a solid return on invested capital of 33.71%, reflecting efficient use of capital to generate profits. However, the negative trends in free cash flow growth and a net profit margin of 8.59% raise concerns about the company’s operational efficiency and overall financial health. Investors may be cautious as they navigate these mixed signals, weighing the potential for recovery against the backdrop of recent price volatility. As the market continues to react to these fundamental metrics, it will be interesting to see how Bath & Body Works positions itself for future growth amidst these challenges.

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company sells its products under the Bath & Body Works, White Barn, and other brand names through specialty retail stores and websites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. As of January 29, 2022, it operated 1,755 company-operated retail stores and 338 international partner-operated stores. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.