(Reuters) - Bath & Body Works trimmed its annual profit and sales forecasts on Thursday, signalling weak demand for its scented candles and fragrances among cash-strapped shoppers and mounting costs, sending its shares down 14% in premarket trading.

The firm, which also missed market estimates for third-quarter sales and profit, announced a transformation plan and said it will deliver $250 million in cost savings over the next two years, with over half of them in 2026.

The dour outlook comes at a time when shoppers in the U.S. are cautious of the Trump administration's ever-changing tariff policies, which has put shopping budgets under pressure, and weakened demand for discretionary items even in an otherwise busy holiday season.

It now expects 2025 net sales to decline by low single digits, compared with its prior forecast of a growth between 1.5% and 2.7%. It slashed its fiscal 2025 earnings per share forecast to at least $2.87, from prior range of $3.35 to $3.60.

Bath & Body Works posted a profit of 35 cents per share on an adjusted basis for the quarter ended November 1, missing analysts' average estimate of 39 cents, according to data compiled by LSEG.

Its quarterly sales fell 1% to $1.59 billion from a year ago, below analysts' estimates of $1.63 billion.