Bath & Body Works Sees Q4 Rebound Despite Soft Start

Company emphasizes multi-year turnaround plan as it navigates consumer shifts and inflation pressures.

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 performance is seen as a bellwether for consumer spending trends, especially in discretionary categories. The company's commentary on navigating macroeconomic pressures and executing on a multi-year turnaround strategy provides insights into the challenges and opportunities facing the broader retail industry.

The details

CEO Daniel Heaf said the fourth quarter 'was better than we had anticipated,' though still 'well below the standard we expect for ourselves.' He attributed improvement as the quarter progressed to actions taken after early-November softness, including targeted promotions and operational adjustments during key holiday moments. By channel, Body Care declined 'mid-single digits below the shop,' driven by underperformance in seasonal collections, while Home fragrance grew low single digits and outperformed the overall business. Fourth quarter adjusted gross profit rate was 45.7%, down 100 basis points year over year but better than expected.

  • Bath & Body Works opened its first store in New Albany, Ohio in 1990.
  • The company reported its Q4 2025 results on March 4, 2026.

The players

Bath & Body Works

A leading specialty retailer focused on personal care, home fragrance and complementary products, with its flagship Bath & Body Works brand.

Daniel Heaf

CEO of Bath & Body Works.

Wendy Boratto

Chief Financial Officer of Bath & Body Works.

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What they’re saying

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