Bath & Body Works (BBWI) BBWI Q3 Financial Results Summary
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Bath & Body Works, Inc. (BBWI) Q3 2025 Financial Results Summary
Bath & Body Works, Inc. (NYSE: BBWI) released its third-quarter financial results on November 20, 2025. The company outlined a strategic transformation plan aimed at driving sustainable growth while reporting results that fell below expectations.
Key Financial Highlights:
- Net Sales: $1.594 billion
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Down 1% from $1.610 billion in Q3 2024.
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Earnings per Diluted Share:
- Reported: $0.37, down 24% from $0.49 in Q3 2024.
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Adjusted: $0.35.
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Operating Income:
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$161 million, down 26% compared to $218 million last year.
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Net Income:
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$77 million, a 27% decrease from $106 million in Q3 2024.
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Adjusted Net Income:
- $71 million.
Miscellaneous Financial Metrics:
- Reported gain from asset sale: $8 million pre-tax ($6 million after-tax).
Guidance Adjustments:
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Q4 2025 Net Sales: Expected to decline by high single digits compared to $2.788 billion in Q4 2024.
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Q4 2025 Earnings per Diluted Share: Expected to be at least $1.70, down 18.8% from $2.09 in Q4 2024.
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Full-Year 2025 Growth Guidance: Revised from 1.5% to 2.7% growth to a decline in low single digits from $7.307 billion in fiscal 2024.
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Full-Year 2025 Earnings per Diluted Share: Expected to be at least $2.83, a decrease of 21.6% compared to $3.61 in fiscal 2024.
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Adjusted Full-Year 2025 Earnings per Diluted Share: Expected to be at least $2.87, down 12.8% from $3.29 in fiscal 2024.
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Free Cash Flow: Anticipated to be approximately $650 million for fiscal 2025.
Share Repurchase and Dividends:
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The company expects to deploy approximately $400 million towards share repurchases in 2025.
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Dividends paid in Q3 2025 were $126 million, down 6% from $134 million paid in Q3 2024.
Strategic Transformation Initiatives:
Under the “Consumer First Formula,” Bath & Body Works has outlined four key priorities to address current market challenges and drive long-term growth:
- Create Disruptive and Innovative Products:
- Focus on core categories such as body care, home fragrance, and soaps.
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Emphasis on ingredient-led formulas and simplified product assortments.
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Reignite the Brand:
- Build stronger brand moments through targeted marketing and creator advocacy.
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Enhance visual storytelling around iconic fragrances.
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Win in the Marketplace:
- Improve consumer experience through digital and in-store innovation.
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Expand presence in new wholesale channels.
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Operate with Speed and Efficiency:
- Enhance operational efficiency to close silos and speed up decision-making.
- Targeting $250 million in cost savings over two years, with over half identified for 2026.
Third Quarter Performance Summary:
- Sales Breakdown:
- U.S. and Canada Stores: $1.222 billion (increase of 0.2% from Q3 2024).
- Direct Sales: $299 million (down 7% year-over-year).
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International Sales: $73 million (up 6.1% from the previous year).
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Total Company-Operated Stores: Increased to 1,934 as of November 1, 2025, after opening 73 new stores and closing 34.
Current Assets and Liabilities:
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Total Assets: $4.989 billion, slightly up compared to $4.984 billion in the previous year.
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Total Current Liabilities: $1.553 billion, marginally down compared to $1.575 billion last year.
Conclusion:
Bath & Body Works is in the midst of strategic efforts to rejuvenate its brand and drive growth while facing macroeconomic pressures. The company’s modified outlook reflects its current situation and commitment to operational efficiency as it works through these challenges.
| Third Quarter | 2024 | Year-to-Date | 2025 | 2024 | |
|---|---|---|---|---|---|
| Net Sales | $ 1,594 | $ 1,610 | $ 4,567 | $ 4,520 | |
| Costs of Goods Sold, Buying and Occupancy | -936 | -910 | -2,622 | -2,587 | |
| Gross Profit | 658 | 700 | 1,945 | 1,933 | |
| General, Administrative and Store Operating Expenses | -497 | -482 | -1,418 | -1,345 | |
| Operating Income | 161 | 218 | 527 | 588 | |
| Interest Expense | -68 | -77 | -208 | -236 | |
| Other Income, Net | 10 | 4 | 25 | 65 | |
| Income Before Income Taxes | 103 | 145 | 344 | 417 | |
| Provision for Income Taxes | -26 | -39 | -98 | -72 | |
| Net Income | $ 77 | $ 106 | $ 246 | $ 345 | |
| Net Income per Diluted Share | $ 0.37 | $ 0.49 | $ 1.17 | $ 1.55 | |
| Weighted Average Diluted Shares Outstanding | 206 | 219 | 211 | 223 |
| November 1, 2025 | November 2, 2024 | |
|---|---|---|
| ASSETS | ||
| Current Assets: | ||
| Cash and Cash Equivalents | $ 236 | $ 191 |
| Accounts Receivable, Net | 169 | 200 |
| Inventories | 1,251 | 1,178 |
| Easton Assets Held for Sale | 81 | — |
| Other | 144 | 151 |
| Total Current Assets | 1,881 | 1,720 |
| Property and Equipment, Net | 1,142 | 1,158 |
| Operating Lease Assets | 967 | 1,029 |
| Goodwill | 628 | 628 |
| Trade Name | 165 | 165 |
| Deferred Income Taxes | 132 | 143 |
| Other Assets | 74 | 141 |
| Total Assets | $ 4,989 | $ 4,984 |
| LIABILITIES AND EQUITY (DEFICIT) | ||
| Current Liabilities: | ||
| Accounts Payable | $ 781 | $ 510 |
| Accrued Expenses and Other | 558 | 547 |
| Current Debt | — | 314 |
| Current Operating Lease Liabilities | 193 | 188 |
| Income Taxes | 21 | 16 |
| Total Current Liabilities | 1,553 | 1,575 |
| Deferred Income Taxes | 23 | 45 |
| Long-term Debt | 3,890 | 3,883 |
| Long-term Operating Lease Liabilities | 897 | 969 |
| Other Long-term Liabilities | 218 | 260 |
| Total Equity (Deficit) | -1,592 | -1,748 |
| Total Liabilities and Equity (Deficit) | $ 4,989 | $ 4,984 |