Bath & Body Works, Inc.(NYSE:BBWI) shares popped after the retailer flexed a solid profit beat, even as sales slid and the core U.S.-Canada business stayed soft.

Management is leaning hard into a “Consumer First” reset, speeding up innovation, widening distribution, and pushing into Amazon.com, Inc. (NASDAQ:AMZN), but its outlook still reads cautious.

The company reported fourth-quarter adjusted earnings per share of $2.05. Quarterly sales of $2.724 billion (down 2% year over year) outpaced the Street view of $1.336 billion.

Segment Performance

• Stores – U.S. & Canada: Sales declined 2.6% year over year to $2.05 billion.
• Direct – U.S. & Canada: Revenue fell 2.5% year over year to $579 million.
• International: Sales increased 8.6% year over year to $91 million.

Quarterly Analysis

Quarterly gross profit totaled $1.244 billion, compared with $1.301 billion a year ago. Operating Income totaled $599 million, compared with $678 million.  

“Since launching the Consumer First Formula in the third quarter, we have moved with urgency to accelerate innovation in our hero categories, refresh and modernize our brand, expand distribution, and simplify our operating model,” said Daniel Heaf, chief executive officer of Bath & Body Works. “The earlier-than-planned launch on Amazon and the rollout of our new brand identity are clear examples of our team’s focused execution.”

Bath & Body Works exited the quarter with cash and equivalents worth $953 million.

Full-Year 2025 Results

The company reported net sales of $7.291 billion for the year ended January 31, 2026, a decrease of 0.2% compared to net sales of $7.307 billion for the year ended February 1, 2025.

Earnings per diluted share were $3.11 for the year, compared to $3.61 in 2024.

Outlook

Bath & Body Works said it expects fiscal 2026 adjusted EPS of $2.40 to $2.65, below analysts’ estimate of $2.80. The retailer forecast GAAP EPS of $3.00 to $3.25 versus $3.05 and sales of $6.963 billion to $7.109 billion versus $7.220 billion.

Bath & Body Works forecast first-quarter GAAP EPS of 84 cents to 90 cents, above analysts’ estimate of 29 cents, and adjusted EPS of 24 cents to 30 cents versus 20 cents. The retailer expects first-quarter sales of $1.339 billion to $1.367 billion, below the Street view of $1.476 billion.

BBWI Price Action: Bath & Body Works shares were up 3.83% at $23.29 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock