Bath & Body Works, Inc. (NYSE:BBWI) stock tumbled Thursday after the retailer missed third-quarter expectations and slashed its full-year outlook, a sharp warning that discretionary spending is weakening just as the holiday season begins.

The company reported third-quarter adjusted earnings per share of 35 cents, missing the Street view of 40 cents.

Following the results, Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating on the stock, with a price forecast of $38.

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Quarterly sales of $1.594 billion (down 1% year over year) missed the analyst consensus estimate of $1.634 billion.

Management said the Disney Villains collection fell short of expectations and the late-October holiday kickoff was “very challenging,” signaling softer-than-hoped consumer demand.

The company’s third-quarter 2025 results included a pre-tax gain of $8 million, or $6 million after tax, from selling a non-core asset.

Gross profit in ...