Core Insights - Bath & Body Works, Inc. reported fourth quarter and full-year 2025 results, indicating a decrease in net sales and earnings compared to the previous year [1][3][5]. Fourth Quarter 2025 Results - The company reported net sales of $2,724 million for the fourth quarter, a decrease of 2% from $2,788 million in the same quarter of the previous year [3][10]. - Earnings per diluted share were $1.99, down from $2.09 in the prior year [3][10]. - Operating income for the fourth quarter was $599 million, compared to $678 million last year [3][10]. - Net income decreased to $403 million from $453 million in the previous year [3][10]. - Adjusted earnings per diluted share were $2.05, with adjusted operating income at $614 million and adjusted net income at $415 million [4][10]. Full-Year 2025 Results - For the full year, net sales were $7,291 million, a slight decrease of 0.2% from $7,307 million in 2024 [5][6]. - Earnings per diluted share for the year were $3.11, down from $3.61 in 2024 [6][9]. - Full-year operating income was $1,126 million, compared to $1,266 million last year [6][9]. - Net income for the year was $649 million, down from $798 million in the previous year [6][9]. - The company repurchased 15.1 million shares for $400 million during the fiscal year [6]. Business Transformation and Future Guidance - The CEO emphasized the ongoing transformation of the business, aiming to reposition Bath & Body Works as a premier global brand [2]. - For fiscal 2026, the company forecasts a decline in net sales between 4.5% to 2.5% compared to 2025, with earnings per diluted share expected to be between $3.00 and $3.25 [10][12]. - The company anticipates generating approximately $600 million in free cash flow for fiscal 2026 [12][49]. Store Operations - As of January 31, 2026, the total number of company-operated stores increased to 1,927, with 94 new openings and 62 closures [35][36]. - The total number of partner-operated stores internationally rose to 573, with 74 new openings and 30 closures [36].