Bath & Body Works (BBWI) shares plummeted nearly 25% to a new 52-week low after the company reported "disappointing" third-quarter earnings that missed Wall Street estimates and significantly slashed its full-year outlook.
The retailer posted adjusted earnings per share of 35 cents against an expected 39 cents, with revenue of $1.59 billion falling short of the $1.63 billion forecast. Net income declined to $77 million from $106 million in the prior year.
CEO Daniel Heaf attributed the underperformance to "macro consumer pressures" and "negative macro consumer sentiment," leading to a revised fourth-quarter revenue forecast of a high single-digit decline, contrasting sharply with analysts' 1.5% increase expectation. In response, Heaf unveiled a "Consumer First Formula" turnaround plan, targeting $250 million in cost savings by 2027.
This strategy involves refocusing on core products like body care and fragrances, exiting underperforming categories such as haircare and men's grooming, and enhancing digital engagement through app revamps and influencer marketing to attract younger consumers.
Bath & Body Works Reports Lower Profit(current)
Originally reported as: “Bath & Body Works Reports Lower Profit”
