Bath & Body Works reported second quarter 2026 results that exceeded earnings guidance primarily due to a substantial one-time benefit, despite missing revenue estimates as store traffic remained pressured. While total net sales declined 2.3% year-over-year, the company achieved its first growth in Direct net sales since 2021.
Key Highlights
- Adjusted EPS of $0.62 significantly exceeded the $0.34 estimate, though results included an $80 million ($0.31 per share) one-time benefit from tariff refunds.
- Net sales of $1.51 billion fell short of the $1.54 billion analyst expectation, driven by a 5.4% decline in U.S. and Canadian store sales.
- Direct net sales grew 3.0% to $275 million, supported by digital transformation investments and enhancements to the online customer experience.
- Management narrowed FY2026 sales guidance to a decline of 4% to 2.5% and set adjusted EPS guidance at $2.60 to $2.80, well below the $3.21 earned in fiscal 2025.