Bath & Body Works(US:BBWI) RTTNews·2025-11-20 12:34Core Insights - Bath & Body Works, Inc. (BBWI) reported a significant reduction in its financial outlook for the fourth quarter and full-year 2025, expecting earnings of at least $1.70 per share and a decline in net sales by high single digits from last year's $2.79 billion [1][2] - The company anticipates earnings of at least $2.83 per share for fiscal 2025, with adjusted earnings projected at least $2.87 per share, alongside a low single-digit decline in net sales from last year's $7.31 billion [2][3] Financial Performance - For the third quarter, Bath & Body Works reported a net income of $77 million ($0.37 per share), down from $106 million ($0.49 per share) in the same quarter last year [5] - Adjusted earnings for the third quarter were $0.35 per share, compared to $0.49 per share in the prior year, with net sales declining to $1.59 billion from $1.61 billion [5] Analyst Expectations - Analysts had expected earnings of $2.18 per share with a net sales growth of 1.80% to $2.84 billion for the fourth quarter, while the company’s previous guidance was for earnings between $3.28 and $3.53 per share [2][3] - The Street's expectations for the full year were earnings of $3.42 per share on a net sales growth of 2.02% to $7.45 billion [3] Strategic Initiatives - The company announced a comprehensive transformation plan called the Consumer First Formula, focusing on four key areas: innovative product creation, brand revitalization, marketplace competitiveness, and operational efficiency [6] - Bath & Body Works aims to achieve $250 million in cost savings over two years, with more than half of these savings targeted for 2026, to reinvest in revenue-generating initiatives [7] External Factors - The company's outlook for the fourth quarter and full-year 2025 includes the anticipated impact of all current tariff rates imposed by the U.S. government and other countries [4]