Bath & Body Works sales fall; says transformation ‘takes time', cites progress
Bath & Body Works reported fourth-quarter results as it works to transform itself from a specialty retailer to a “premier global brand.”
The personal care and home fragrance company’s quarterly earnings and sales fell, but still managed to beat estimates. In its earning release, Bath & Body Works said its new strategy, dubbed “Consumer First Formula,” was delivering improvements but would take time to return the business to sales growth.
“We are making progress, but transformations of this scale take time,” said CEO Daniel Heaf. “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. This work lays the foundation for sustained, long-term growth as we reposition the company from a specialty retailer to a premier global brand.”
Bath & Body Works reported that its net income totaled $403 million, with earnings per share were $1.99 for quarter ended Feb. 1, topping Street estimates of $1.78 per share, compared to $453 million, with earnings per share $2.09 per share, in the year-ago period. Operating income was $599 million compared to $678 million last year.
Net sales fell 2% to of $2.7 billion. Analysts had expected sales of $2.62 billion.
Under its new strategy, Bath & Body Works is focused on product innovation and brand reinvigoration, and is also expanding its access to customers, including through third-party channels. In February, the company opened its first official storefront on the Amazon platform. It also has brought a curated collection of Gen Z favorite products to more than 1,000 college campus stores.
[READ MORE: Bath & Body Works turnaround includes Amazon launch, less overhelming stores]
“Our fourth quarter results exceeded the guidance we provided,” Heaf said. “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. The earlier-than-planned launch on Amazon and the rollout of our new brand identity are clear examples of our team’s focused execution.”
On the earnings call, Heaf said that the curated Amazon assortment is designed to attract new shoppers to the brand while giving loyal consumers far more convenient access to their favorite products.
“As we learn more from our Amazon launch, we are evaluating additional opportunities to extend our distribution further in strategic and brand-accretive ways,” the CEO old analysts.
At the same time, the company is elevating its owned digital experience with a focus on reducing friction and improving the customer experience through “clearer product navigation, stronger storytelling, and a more intuitive and modern shopping experience,” Heaf said.
For its 2026 fiscal year, the company expects net sales to decline 2.5% to 4.5%.
Bath & Body Works has more than 1,900 stores in the U.S. and Canada, as well as 500-plus international locations.
