Bath & Body Works Q4 Sales Decline 2%; Forecasting Up to 4.5% FY26 Sales Drop
Bath & Body Works reported Q4 net sales of $2.72 billion, a 2% decline, with operating income falling to $599 million and EPS down to $1.99. The company forecasts FY26 net sales to drop 2.5%–4.5%, earnings per share of $3.00–$3.25 and free cash flow of $600 million.
1. Q4 Financial Results
Net sales for the quarter ending January 31, 2026, were $2.72 billion, down 2% from $2.78 billion a year earlier. Operating income declined to $599 million from $678 million, while net income fell to $403 million from $453 million, driving EPS down to $1.99 from $2.09.
2. Adjusted Performance and Transformation Costs
Reported results included $15 million in pre-tax transformation costs. Excluding these, adjusted operating income was $614 million and adjusted net income was $415 million, while adjusted EPS stood at $2.05.
3. FY26 Guidance
For fiscal 2026, the company forecasts net sales will decrease by 2.5% to 4.5% from $7.29 billion in FY25. Full-year EPS are expected between $3.00 and $3.25, with projected free cash flow of $600 million.
4. Q1 FY26 Forecast
In Q1 FY26, Bath & Body Works projects net sales will decline 4%–6% versus $1.42 billion in Q1 FY25. First-quarter EPS are forecast at $0.84 to $0.90, compared with $0.49 in the same period last year.