Shares slump as Bath & Body Works slashes outlook
By Abigail Townsend
Date: Thursday 20 Nov 2025
(Sharecast News) - Shares in Bath & Body Works tumbled on Thursday, after the US retailer cut its sales and profits outlook amid a slump in demand.
The firm also missed third-quarter forecasts and unveiled a transformation plan - dubbed Consumer First Formula - under which it will seek to revitalise the brand, improve the product offering and generate cost savings of $250m over two years.
Newly-installed chief executive Daniel Heaf said: "Our results were below expectations and we are lowering our outlook for the remainder of the year, reflecting current business trends and continuation of recent macro consumer pressures.
"While this is disappointing, we are acting swiftly and decisively to position the business for sustainable, long-term growth."
Net sales were 1% lower in the three months to 1 November, at $1.6bn, while net income tumbled to $77m from $106m.
Diluted earnings per share fell to $0.37 from $0.49.
Looking to the fourth quarter, Bath & Body Works - a specialist in personal care and home fragrance, including candles and soap - said it expected net sales to be down high single digits, with diluted EPS at least $1.70.
"Our guidance reflects the continuation of recent negative macro consumer sentiment weighing heavily on our consumers' purchase intent," the retailer said. "Additionally, our outlook includes the anticipated impact of all tariff rates currently in effect and levied by the US government and other countries."
The full-year net sales outlook was also lowered, to a low single digit decline, from previous guidance of between 1.5% and 2.7%.
The annual earnings forecast was similarly slashed. EPS is now expected to be at least $2.87, compared to earlier guidance for between $3.35 and $3.60.
As at 1300 GMT, the stock has shed 14% in pre-market trading.
Heaf, who took up the role in May, said: "Over the past six months I have been deeply immersed in the business.
"Our enduring strengths combined with our Consumer First Formula investments will create the engines required to drive sustainable long-term growth."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN