Bath & Body Works beats Q4 estimates, issues cautious 2026

Bath & Body Works (NYSE:BBWI) reported fourth-quarter 2025 results on Wednesday that exceeded its own conservative projections, though the retailer signaled a cautious road ahead with a 2026 outlook that anticipates continued sales declines.

The Columbus, Ohio-based fragrance giant posted fourth-quarter net sales of $2.7 billion.

While this represented a 2% decline compared to the prior year, the figure landed above the high end of the company’s previous guidance.

The bottom line also showed resilience, with earnings per diluted share reaching $1.99.

On an adjusted basis, which excludes certain costs related to the company's ongoing "Consumer First" transformation, earnings per share stood at $2.05.

The quarterly beat was driven by strong engagement in core categories such as body care and home fragrance during the critical holiday window.

Management noted that higher reward redemption and a 6% increase in active loyalty members—now totaling roughly 39 million—helped sustain traffic despite a promotional retail landscape and macro consumer pressures.

Despite the quarterly outperformance, Bath & Body Works provided a 2026 forecast that suggests a period of contraction ahead.

For the full year 2026, the company expects net sales to decline between 4.5% and 2.5% compared to 2025 levels.