Bath & Body Works Q4 Earnings Call Highlights

Executives say turnaround plan will take time to fully show in financial results

Published on Mar. 4, 2026

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Bath & Body Works (NYSE:BBWI) executives said the company's fourth quarter results came in better than expected as targeted holiday actions helped offset a soft start to the period, while management emphasized that a broader multi-year turnaround plan will take time to show up fully in financial results.

Why it matters

Bath & Body Works is a major specialty retailer focused on personal care and home fragrance products, and its quarterly earnings provide insights into consumer spending trends and the company's strategy to revitalize its business.

The details

Fourth quarter net sales were $2.7 billion, down 2.3% year over year, but above the company's guidance. Adjusted earnings per share were $2.05, down 2% year over year but ahead of expectations. By channel, U.S. and Canadian stores saw sales decline 2.6%, the direct channel was down 2.5%, and international sales grew 8.6%. Body care products were pressured, while home fragrance and soaps saw growth. Adjusted gross margin was 45.7%, down 100 basis points, primarily due to tariff impacts. The company opened 21 new stores and closed 28 during the quarter.

  • Fourth quarter results topped internal expectations
  • For fiscal 2025, the company opened 32 net new stores

The players

Daniel Heaf

CEO of Bath & Body Works.

Eva Boratto

CFO of Bath & Body Works.

Bath & Body Works

A leading specialty retailer focused on personal care, home fragrance and complementary products, operating under the Bath & Body Works brand.

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What they’re saying

“The fourth quarter 'was better than we had anticipated,' though still 'well below the standard we expect for ourselves.'”

— Daniel Heaf, CEO (marketbeat.com)

“Body Care declined 'mid-single digits below the shop,' driven by underperformance in seasonal collections—particularly Holiday Traditions, which she said 'did not resonate for the first time in several years.'”

— Eva Boratto, CFO (marketbeat.com)

What’s next

The company expects its innovation pipeline, marketing improvements, and new touchpoints such as marketplace and wholesale to contribute more meaningfully over time, with greater impact in the back half of 2026 and into 2027.

The takeaway

Bath & Body Works is undertaking a multi-year turnaround plan focused on product innovation, brand reinvigoration, and operational improvements, though the full financial impact will take time to materialize as the company navigates a challenging consumer environment.