Bath & Body Works Inc. (BBWI) saw its stock decline 18% following the release of its fourth-quarter earnings, which missed analyst expectations. Despite the selloff, the company’s board members collectively purchased 22,500 shares in a move signaling confidence in the business’s long-term outlook.
- BBWI stock fell 18% after reporting adjusted EPS of $0.87, below the $0.94 consensus.
- Revenue of $1.24 billion marked a 3.4% year-over-year decline.
- Board members collectively bought 22,500 shares at an average price of $48.23.
- Insider purchases included a 6,000-share buy by a non-executive director.
- 2026 guidance projects low-single-digit revenue growth and EPS of $3.75–$3.90.
- Market cap dropped by approximately $1.1 billion post-earnings.
Bath & Body Works Inc. (BBWI) reported adjusted earnings per share of $0.87 for the quarter ended November 2, 2025, falling short of the consensus estimate of $0.94. Revenue totaled $1.24 billion, a 3.4% year-over-year decline, driven by weaker-than-expected performance in North American retail channels and a challenging promotional environment. The results triggered a sharp sell-off, with BBWI shares dropping 18% in after-hours trading, erasing approximately $1.1 billion in market value. The company’s guidance for fiscal 2026 was also cautious, projecting low-single-digit revenue growth and adjusted EPS in the range of $3.75 to $3.90, below analysts’ prior expectations. This caution contributed to investor skepticism, particularly amid rising concerns about consumer spending pressures in the personal care and fragrance sector. Despite the negative market reaction, the company’s board of directors made a notable move: they collectively acquired 22,500 shares of BBWI stock in late November 2025. The purchases were disclosed through a Form 4 filing with the U.S. Securities and Exchange Commission, with five directors participating. This activity, including the largest individual buy of 6,000 shares by a non-executive director, stands in contrast to the broader market sentiment and suggests internal confidence in the company’s strategic direction. The insider transactions occurred at an average price of $48.23 per share—well below the pre-earnings trading range of $58–$60. Analysts note that while the earnings miss is concerning, the board’s actions may signal a potential long-term opportunity for investors, particularly if the company executes its turnaround plans effectively in the coming quarters.