Bath & Body Works (BBWI) reported strong fourth-quarter results, with adjusted earnings per share of $2.05, significantly beating the $1.75 analyst consensus. Quarterly revenue reached $2.7 billion, a 2% year-over-year decline, driven by faster product innovation and an earlier-than-planned launch on Amazon. However, the company issued a cautious outlook for fiscal 2026, forecasting adjusted EPS between $2.40 and $2.65, with the $2.53 midpoint falling below the $2.59 Wall Street estimate. Net sales for the full year are projected to decline between 2.5% and 4.5%, while first-quarter sales are expected to drop by 4% to 6%. These projections highlight a disconnect between the firm's recent operational success and the anticipated headwinds in the retail sector. Investors are now weighing the Q4 earnings beat against the weaker-than-expected guidance for the coming year.
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