Bath & Body Works, Inc. (NYSE:BBWI) saw its shares tumble more than 23% intra-day on Thursday after the company cut its full-year sales growth forecast and reported softer-than-expected third-quarter financial results. The stock had already dropped more than 16% in premarket trading earlier in the morning.

The retailer posted earnings of $0.35 per share, missing the $0.40 analyst estimate. Revenue of $1.6 billion came in below expectations of $1.63 billion.

Alongside the results, Bath & Body Works introduced its “Consumer First Formula,” a multiyear transformation strategy organized around four pillars: refreshing and streamlining product innovation, reigniting brand relevance through improved storytelling, expanding customer reach across digital, in-store, and emerging wholesale channels, and increasing operational speed and efficiency.

The company projected $250 million in cost savings over two years, with more than half expected to be realized in 2026.

For the fourth quarter of fiscal 2025, Bath & Body Works projected net sales to decline at a high-single-digit rate compared to last year's $2.79 billion. The company guided for at least $1.70 in EPS, well below the $2.18 consensus, citing persistent consumer weakness and ongoing global tariff impacts.

Most notably, the company revised full-year 2025 guidance to a low-single-digit decline in net sales, compared with a previous outlook of 1.5% to 2.7% growth. Full-year adjusted EPS is now forecast at $2.87, far below the $3.42 consensus estimate.