By Nicholas G. Miller

Bath & Body Works reported a lower fourth-quarter profit, but said its strategy pivot to refocus on its core products was making progress.

The company's shares climbed 7% to $24 in premarket trading Wednesday.

The personal-care retailer had net income of $403 million, or $1.99 a share, down from $453 million, or $2.09 a share, the year prior. Analysts polled by FactSet expected $1.78 a share.

Sales fell 2% to $2.72 billion. Wall Street expected $2.62 billion.

The company guided for 2026 net sales to be down 2.5% to 4.5% and adjusted earnings to be $2.40 to $2.65 a share. Analysts see adjusted earnings of $2.60 a share for the year.

"We are making progress, but transformations of this scale take time," said Chief Executive Daniel Heaf, adding that fourth-quarter results exceeded its guidance. "We are undertaking a comprehensive, end-to-end evolution of our business-building a Bath & Body Works that is more innovative, more relevant, and easier to shop."

In November, the company slashed its profit outlook and unveiled a strategy shift to return to sales growth. It said it had previously neglected its most popular product categories to pursue sales in new areas and said it would exit some of those new categories, such as hair care and men's grooming, and develop new offerings in core categories.

Bath & Body Works also said it would overhaul its website and cut $250 million in costs. Despite the changes, the company warned that its annual sales were unlikely to return to growth until 2027.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

March 04, 2026 08:18 ET (13:18 GMT)

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