Bath & Body Works Q4 Sales Down 2.3% to $2.7B; EPS Beats at $2.05
Bath & Body Works Q4 net sales fell 2.3% to $2.7 billion, while adjusted EPS of $2.05 beat estimates despite a 2% decline. Executives praised record Champagne Toast and home fragrance growth, launched 50 SKUs on Amazon, and set fiscal 2026 EPS guidance at $2.40–$2.65 under 'Consumer First Formula'.
1. Q4 Financial Results
Bath & Body Works reported net sales of $2.7 billion for the fourth quarter, down 2.3% year over year, and adjusted EPS of $2.05, down 2% but above company guidance. Adjusted gross profit rate was 45.7%, down 100 basis points, and adjusted operating income totaled $614 million, or 22.5% of net sales.
2. Product Category Performance
Fragrance led the quarter with Champagne Toast achieving its strongest year ever and home fragrance growing low single digits. Candles benefited from three-wick and single-wick strength while soaps and sanitizers posted low single-digit growth; Body Care declined mid-single digits driven by underperforming seasonal collections.
3. Strategic Initiatives and Amazon Launch
Management reiterated the multi-year Consumer First Formula focused on disruptive innovation, brand modernization, marketplace expansion and operational efficiency. On February 20, the company launched a curated 50-SKU assortment on Amazon, targeting a $50 million contribution to growth within the full-year outlook.
4. 2026 Guidance and Outlook
Bath & Body Works guided fiscal 2026 adjusted EPS of $2.40 to $2.65, below prior consensus, and forecast full-year sales of $6.963 billion to $7.109 billion. First-quarter GAAP EPS is expected at $0.84 to $0.90 with sales of $1.339 billion to $1.367 billion under continued Consumer First investments.