Bath & Body Works Q4 Earnings Call Highlights

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MarketBeat

Wed, March 4, 2026 astatine 10:50 AM CST 9 min read

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Bath & Body Works reported a stronger-than-expected Q4 with nett income of $2.7 billion (down 2.3% YoY) and adjusted EPS of $2.05, arsenic targeted vacation promotions and a post-government-reopening user rebound helped offset early-period softness.
Management reiterated a multi-year "Consumer First Formula" focused connected merchandise innovation and marque reinvigoration, launched a curated Amazon assortment connected Feb 20 (initially 50 SKUs) and guided fiscal 2026 income to diminution 4.5%–2.5% with adjusted EPS of $2.40–$2.65, calling 2026 an concern twelvemonth with benefits accelerating into 2027.
The institution is targeting $250 million successful outgo savings implicit 2 years (about $175 million successful 2026 guidance), expects ~$600 million escaped currency travel successful 2026, volition support a $0.80 yearly dividend, and assumes nary stock repurchases successful its 2026 outlook.
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Bath & Body Works Hits Multi-Year Lows: Bargain oregon Trap?

Bath & Body Works (NYSE:BBWI) executives said the company’s 4th fourth results came successful amended than expected arsenic targeted vacation actions helped offset a brushed commencement to the period, portion absorption emphasized that a broader multi-year turnaround program volition instrumentality clip to amusement up afloat successful fiscal results.

CEO Daniel Heaf said the 4th fourth “was amended than we had anticipated,” though inactive “well beneath the modular we expect for ourselves.” He attributed betterment arsenic the 4th progressed to actions taken aft early-November softness, including targeted promotions and operational adjustments during cardinal vacation moments. He besides noted a “consumer rebound aft the authorities reopened,” which supported demand.

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How Bath & Body Works Is a Perfect Example of a Value Stock

CFO Eva Boratto said 4th fourth nett income were $2.7 billion, down 2.3% twelvemonth implicit year, and supra the “guidance floor” the institution had acceptable for down precocious azygous digits. Adjusted net per diluted stock were $2.05, down 2% twelvemonth implicit twelvemonth and up of expectations.

By channel, Boratto reported:

U.S. and Canadian stores: $2.1 billion, down 2.6%
Direct channel: $579 million, down 2.5% (with integer outperforming stores erstwhile adjusting for bargain online, prime up successful store)
International nett sales: $91 million, up 8.6%, with system-wide retail income up 13%

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