Bath & Body Works (BBWI) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2024 reached $1.61 billion, up 3% year-over-year, exceeding guidance and driven by innovation, new store growth, and positive store traffic and conversion.

• Adjusted EPS for Q3 2024 was $0.49, above guidance and up from $0.48 last year; reported EPS was $0.49.

• Operating income for Q3 2024 was $218 million, down 1% year-over-year, with an operating margin of 13.5%.

• All core categories—body care, home fragrance, soaps and sanitizers—grew low single digits year-over-year, with record loyalty engagement and 38 million active members.

• Cost optimization initiatives delivered $35 million in Q3 and are expected to reach $150 million in 2024.

Financial highlights

• Q3 2024 net sales: $1.61 billion (+3% year-over-year); gross profit: $700 million with a 43.5% margin; operating income: $218 million.

• SG&A expense rate: 30% of net sales, up from 29.5% last year, due to marketing and merit investments.

• Q3 2024 net income was $106 million, down from $119 million last year.

• Inventory down 2% year-over-year and well-positioned for the holiday season.

• Cash and cash equivalents at period end: $191 million, down from $412 million a year ago.

Outlook and guidance

• Q4 2024 net sales expected to decline 4.5% to 6.5% year-over-year due to calendar shifts and fewer shopping days.

• Q4 gross profit rate expected at 46.3%, up 40 bps; SG&A rate at 22.4%, up 40 bps due to marketing.

• Full-year 2024 net sales guidance: down 2.5% to 1.7%; adjusted EPS raised to $3.15–$3.28.

• Adjusted free cash flow guidance: $675–$775 million.

• No 2025 guidance until after Q4 results.