Bath & Body Works shares fell 8.6% after the company issued weak 2026 guidance, forecasting a 4.5% to 2.5% decline in full-year net sales and earnings per diluted share of $3.00 to $3.25. Fourth-quarter 2025 results showed sales of $2.72 billion and net income of $403 million. The company is pursuing its Consumer First Formula transformation, focusing on core categories, expanding digital and marketplace presence, and introducing collaborations including a limited PEEPS partnership. Between November 2025 and January 2026, Bath & Body Works repurchased 3.65 million shares for $56.93 million. Analysts project 2028 revenue of $8.1 billion and earnings of $860.7 million. The main risk is whether the transformation can engage younger customers whilst managing rising operating costs and tariff pressures without further margin erosion.

Bath & Body Works reported fourth-quarter net sales of $2.7 billion, down 2 percent year-on-year but exceeding Wall Street's $2.62 billion estimate. Earnings per share fell to $1.99 from $2.09, though above the $1.78 forecast. Net income declined to $403 million from $453 million. CEO Daniel Heaf said the company's "consumer first formula" strategy is showing early results but warned that growth won't return until 2027. The strategy focuses on innovation in core categories whilst exiting hair and men's grooming, alongside targeted brand positioning and expanding distribution channels. The company forecasts sales will decline between 2.5 and 4.5 percent this year. Bath & Body Works has expanded to college bookstores and launched on Amazon in February, with wholesale revenues expected to reach $50 million.

Graphene Investments has completely exited its Bath & Body Works position, selling all 114,700 shares for an estimated $2.95 million in the fourth quarter of 2025. The transaction, disclosed in a 27 January 2026 SEC filing, represented 1.85% of the fund's reportable assets. The liquidation follows Bath & Body Works' disappointing third-quarter results in November, when shares plunged 25% in a single day. The retailer reported $1.59 billion in revenue, down 1% year-over-year, and missed earnings expectations. New CEO Daniel Heaf acknowledged excessive promotions damaged brand perception whilst unveiling a $250 million cost-cutting initiative. Bath & Body Works shares have fallen 40% over the past year, trading at $21.45 as of 26 January 2026, underperforming the S&P 500 by 54 percentage points.