Core Insights - Bath & Body Works, Inc. experienced a significant decline in share price, dropping over 23% intra-day after revising its full-year sales growth forecast and reporting weaker-than-expected third-quarter results [1] - The company reported earnings of $0.35 per share, missing the analyst estimate of $0.40, and revenue of $1.6 billion, which fell short of expectations of $1.63 billion [1] Financial Performance - For the fourth quarter of fiscal 2025, Bath & Body Works anticipates a high-single-digit decline in net sales compared to last year's $2.79 billion, with an EPS guidance of at least $1.70, significantly below the $2.18 consensus [3] - The company revised its full-year 2025 guidance to reflect a low-single-digit decline in net sales, down from a previous forecast of 1.5% to 2.7% growth, with adjusted EPS now projected at $2.87, far below the consensus estimate of $3.42 [4] Strategic Initiatives - Bath & Body Works introduced its "Consumer First Formula," a multi-year transformation strategy focused on four pillars: product innovation, brand relevance through storytelling, expanding customer reach across various channels, and enhancing operational efficiency [2] - The company aims to achieve $250 million in cost savings over two years, with more than half expected to be realized by 2026 [2]