Bath & Body Works Beats Q4 Estimates but Forecasts Sales Decline in 2026

Core Insights - Bath & Body Works, Inc. reported fourth-quarter results that exceeded analyst expectations, leading to a more than 4% increase in shares on the day of the report [1] Financial Performance - The company posted adjusted earnings per share of $2.05 for the quarter ended January 31, surpassing the consensus estimate of $1.75 by $0.30 [2] - Revenue for the quarter reached $2.7 billion, exceeding expectations of $2.6 billion, but reflecting a 2% decline from $2.8 billion in the prior-year quarter [2] - The quarter benefited from faster product innovation and an earlier-than-planned launch of products on Amazon [2] Future Projections - For fiscal 2026, Bath & Body Works expects adjusted earnings per share to be between $2.40 and $2.65, with a midpoint of $2.53, which is below the analyst consensus estimate of $2.59 [3] - Net sales for fiscal 2026 are projected to decline between 4.5% and 2.5% compared to fiscal 2025 revenue of $7.3 billion [3] - For the first quarter of fiscal 2026, the company forecasts adjusted earnings per share between $0.24 and $0.30, down from $0.49 in the first quarter of 2025, with net sales expected to decline between 6% and 4% [3] Historical Performance - For fiscal 2025, Bath & Body Works reported adjusted earnings per share of $3.21, a decrease from $3.29 in 2024 [4] - Annual net sales for fiscal 2025 totaled $7.3 billion, reflecting a slight year-over-year decline of 0.2% [4]