Bath & Body Works Inc (NYSE:BBWI) shares rose more than 6% in premarket trading after the retailer reported fourth quarter earnings and revenue that topped Wall Street’s expectations.
The company reported adjusted earnings per diluted share of $2.05 for the quarter ended January 31, 2026, exceeding the $1.75 consensus estimate. Revenue totaled $2.7 billion, ahead of expectations for $2.6 billion.
Daniel Heaf, Bath & Body Works CEO, highlighted that the company’s Q4 results topped its guidance.
“Since launching the Consumer First Formula in the third quarter, we have moved with urgency to accelerate innovation in our hero categories, refresh and modernize our brand, expand distribution, and simplify our operating model,” Heaf said. “The earlier-than-planned launch on Amazon and the rollout of our new brand identity are clear examples of our team’s focused execution.”
For fiscal 2026, the company expects net sales to decline between 4.5% and 2.5% from fiscal 2025 sales of $7.291 billion.
Full-year earnings per diluted share are projected between $3 and $3.25, compared with $3.11 in fiscal 2025. Adjusted earnings per diluted share are forecast in a range of $2.40 to $2.65, compared to adjusted EPS of $3.21 last year.
The 2026 outlook includes interest savings from the redemption of $284 million of January 2027 bonds and assumes no share repurchases. The company expects to generate approximately $600 million in free cash flow.
For the first quarter of fiscal 2026, the company forecasts net sales to decline between 6% and 4% from $1.42 billion a year earlier.
First quarter earnings per diluted share are expected between $0.84 and $0.90, compared with $0.49 in the prior-year period. Adjusted EPS for the quarter is projected between $0.24 and $0.30.