Bath & Body Works shares slide as mall staple’s guidance underwhelms investors

Shares of Bath & Body Works fell nearly 12% on Thursday, even after the lotions and fragrance retailer topped Q4 estimates. Fourth-quarter net sales came in at $2.78 billion, down over 4% from the same period last year but still ahead of expectations. Meanwhile, earnings per share hit $2.09 — also down from last year, but above estimates of $2.04 per share.

Bath & Body Works saw record double-digit growth for its holiday collections during the quarter. The company is attracting a younger, more diverse customer base with higher-quality fragrances and popular limited-edition collaborations, like with hit show “Emily in Paris.” 

But the company’s outlook wasn’t so rosy: Bath & Body Works expects net sales growth of 1% to 3% for 2025, a slight improvement from a 1% decline in 2024. Earnings per diluted share are forecast to be between $3.25 and $3.60 for the year ahead, a decline from last year’s results. That compares to analysts’ expectations of sales growth of 2.9% and EPS of $3.66.