Bath & Body Works Inc. stock plummeted by nearly 25% after reporting disappointing third-quarter earnings and reducing its full-year outlook due to macro consumer pressures. The CEO announced a turnaround plan to save $250 million by 2027, focusing on core products to attract younger consumers. Net income for the quarter was $77 million, down from $106 million last year.

The company also revised its yearly guidance and expects fourth-quarter revenue to decrease in high single digits. Recent negative macro consumer sentiment and tariff impacts influenced the decision. Bath & Body Works plans to refocus on core products like body care, fragrances, and soaps, exiting certain categories like haircare and men’s grooming.

In an attempt to attract new consumers, the company is recruiting influencers to create social buzz around its products. Bath & Body Works will revamp its app and website to enhance engagement and product discovery. Additionally, the company plans to reduce its free shipping threshold in early 2026 to increase customer reach and appeal.

Read more at CNBC: Bath & Body Works (BBWI) Q3 2025 earnings