Bath & Body Works shares climbed after the retailer reported fourth-quarter results that topped analyst expectations. The company posted adjusted earnings per share of $2.05, beating estimates by $0.30, with revenue reaching $2.7 billion against forecasts of $2.6 billion.

Despite the quarterly beat, the company projected weaker performance for 2026 as it undergoes a business transformation. Bath & Body Works expects adjusted earnings per share of $2.40 to $2.65 for fiscal 2026, below the analyst consensus of $2.59. The company also forecast net sales to decline between 4.5% and 2.5% compared to fiscal 2025.

CEO Daniel Heaf acknowledged the transformation is progressing but requires time. The company attributed its fourth-quarter performance to accelerated innovation and an earlier-than-planned launch on Amazon. For the full year 2025, Bath & Body Works reported adjusted earnings per share of $3.21, down slightly from $3.29 in 2024, with net sales of $7.3 billion, essentially flat year-over-year.