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Investing.com -- Bath & Body Works shares fell sharply after the company cut its full-year sales growth outlook and posted softer quarterly results.
The stock was down more than 16% in premarket trading by 07:07 ET.
The retailer reported third-quarter earnings of $0.35 per share, below the $0.40 analyst estimate, on revenue of $1.6 billion versus expectations of $1.63 billion.
Alongside the results, the company unveiled its new Consumer First Formula, a strategic transformation plan built around four priorities: streamlining and refreshing product innovation, reigniting the brand through stronger storytelling and cultural relevance, expanding consumer reach across digital, in-store and new wholesale channels, and improving speed and efficiency across the organization.
Bath & Body Works plans to deliver $250 million in cost savings over two years, with more than half identified for 2026, to fund growth initiatives.
“Today, we are excited to announce a comprehensive transformation plan to revitalize Bath & Body Works across brand, product, and marketplace," Daniel Heaf, CEO of Bath & Body Works, said in the release.
“Our third quarter 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."
The company expects fourth-quarter 2025 net sales to fall at a high-single-digit rate from last year’s $2.79 billion, with earnings per share of at least $1.70, compared to an average analyst estimate of $2.18. The company cited persistent negative consumer sentiment and the impact of existing global tariffs.
Most notably, Bath & Body Works revised full-year 2025 net sales guidance to a low-single-digit decline, compared with a prior outlook for growth of 1.5% to 2.7%. Full-year adjusted EPS are expected at $2.87, well below the $3.42 consensus estimate.