Bath & Body Works Inc. stock plunged Thursday after the company reported “disappointing” third-quarter earnings and slashed its full-year outlook, citing “macro consumer pressures.”

Shares sank nearly 25% on Thursday and hit a new 52-week low. The stock has plunged more than 50% this year.

CEO Daniel Heaf announced a turnaround plan for the company, with expectations of $250 million in cost savings by 2027, aimed at attracting younger consumers and recentering the company’s focus to its core products.

“Our third quarter results were below expectations, and we are lowering our outlook for the remainder of the year reflecting current business trends and continuation of recent macro consumer pressures,” Heaf said in a statement. “While this is disappointing, we are acting swiftly and decisively to position the business for sustainable, long-term growth.”

Here’s how the company performed in the third quarter, compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

• Earnings per share: 35 cents adjusted vs. 39 cents expected
• Revenue: $1.59 billion vs. $1.63 billion expected

Bath & Body reported net income of $77 million, or 37 cents per share, for the quarter ended Nov. 1 compared with $106 million, or 49 cents a share, last year. Adjusting for one-time items including pretax gains, the company reported earnings of 35 cents a share.

The company also slashed its yearly guidance due to “current business trends.” It also expects fourth-quarter revenue to be down in the high single digits compared with Wall Street estimates of an increase of 1.5%. The guidance, pulling on “recent negative macro consumer sentiment” and tariff impacts, also revised net sales guidance for the full year to low single digits.

Heaf said the company is reorienting its strategy to focus once again on core products like body care, fragrances and soaps. The plan, called the “Consumer First Formula,” includes four strategic priorities: creating disruptive and innovative products, reigniting the brand, winning in the marketplace and operating with speed and efficiency.

The company had previously toyed with introducing other products like laundry detergent and shampoo, but Heaf said on a call with analysts Thursday that its efforts have not delivered promising results or attracted younger consumers.

Heaf said the company will be exiting certain categories like haircare and men’s grooming as it refocuses its priorities.

“Over the years, consumers have evolved. They seek greater efficacy, ingredient-led products, modern packaging, emotive storytelling and elevated multi-channel experiences,” Heaf said. “Our competitors have risen to meet those needs. We have not.”

Heaf said on the call that the company is also recruiting influencers to “ignite social buzz” around the company’s products in an attempt to garner attention from new consumers.

Bath & Body Works also plans to revamp its app and website to increase engagement and aid in product discovery. The company will also lower its free shipping threshold in early 2026.