WASHINGTON (dpa-AFX) - While reporting financial results for the third quarter on Thursday, home fragrance company Bath & Body Works, Inc. (BBWI) provided its earnings, adjusted earnings and net sales growth guidance for the fourth quarter, and slashed its full-year 2025 outlook.
For the fourth quarter, the company expects earnings to be at least $1.70 per share on net sales to be down in high single digits from last year's net sales of $2.79 billion.
On average, analysts polled expect the company to report earnings of $2.18 per share on a net sales growth of 1.80 percent to $2.84 billion for the quarter. Analysts' estimates typically exclude special items.
Looking ahead to fiscal 2025, the company now projects earnings of at least $2.83 per share and adjusted earnings of at least $2.87 per share on net sales decline in low single digits from last years $7.31 billion.
Previously, the company expected earnings in the range of $3.28 to $3.53 per share and adjusted earnings in the range of $3.35 to $3.60 per share on net sales growth of 1.5 to 2.7 percent from last years $7.31 billion.
The Street is looking for earnings of $3.42 per share on a net sales growth of 2.02 percent to $7.45 billion for the year.
The company said the outlook for the fourth quarter and full-year 2025 includes the anticipated impact of all tariff rates currently in effect and levied by the U.S. government and other countries.
For the third quarter, the company reported net income of $77 million or $0.37 per share, down from $106 million or $0.49 per share in the prior-year quarter. Excluding items, adjusted earnings for the quarter was $0.35 per share, compared to $0.49 per share last year.
Net sales for the quarter declined to $1.59 billion from $1.61 billion in the same quarter last year.
Analysts expected earnings of $0.40 per share on net sales of $1.63 billion for the quarter.
Additionally, the company also announced a comprehensive transformation plan to revitalize Bath & Body Works across brand, product, and marketplace. This plan, the Consumer First Formula, focuses investments in its four largest revenue driving opportunities - creating disruptive and innovative product, reigniting its brand, winning in the marketplace, and operating with speed and efficiency.
The company plans to deliver $250 million in cost savings over two years, with over half identified for 2026. These savings will be used to invest in revenue generating initiatives across product and brand.
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