Bath & Body Works (NYSE:BBWI) Posts Earnings Results, Beats Expectations By $0.38 EPS

Bath & Body Works (NYSE:BBWI) announced its quarterly earnings results on Wednesday. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38, FiscalAI reports. The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The business’s revenue was down 2.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.30 EPS. Bath & Body Works updated its Q3 2026 guidance to 0.070-0.120 EPS and its FY 2026 guidance to 2.600-2.800 EPS.

Here are the key takeaways from Bath & Body Works’ conference call:

• Second-quarter results exceeded expectations: net sales declined 2.3% to $1.5 billion, ahead of guidance, while adjusted EPS was $0.62, including an approximately $80 million tariff-refund benefit.
• Management raised full-year adjusted EPS guidance to $2.60-$2.80 and narrowed the sales outlook to a 4% to 2.5% decline, supported by cost savings, lower capital spending, and improved second-quarter performance.
• Early initiatives under the Consumer First Formula showed traction, including a return to digital growth, sequential body-care improvement, strong Fruit Fusion demand, and rapid expansion through Amazon and Ulta. Amazon sales more than tripled sequentially, while the company reported no observed cannibalization of owned channels so far.
• The underlying business remains pressured, with store traffic still weak and body care below expectations; management expects third-quarter sales to decline 5% to 2.5% and adjusted EPS of only $0.07-$0.12.
• Tariff refunds provided a significant one-time second-quarter earnings lift, while forward tariffs and input-cost inflation are expected to create approximately $30 million of pressure in the second half. The company is also increasing Consumer First Formula investments by about $35 million, primarily in marketing.

Bath & Body Works Stock Up 7.6%

Shares of NYSE BBWI opened at $18.92 on Thursday. The business’s 50 day moving average is $20.36 and its two-hundred day moving average is $20.01. Bath & Body Works has a 52-week low of $14.27 and a 52-week high of $32.32. The firm has a market cap of $3.81 billion, a price-to-earnings ratio of 5.31, a PEG ratio of 1.73 and a beta of 1.38.

Bath & Body Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be given a $0.20 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $0.80 dividend on an annualized basis and a yield of 4.2%. Bath & Body Works’s payout ratio is presently 22.47%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Global Retirement Partners LLC purchased a new stake in shares of Bath & Body Works in the 4th quarter valued at $31,000. Geneos Wealth Management Inc. boosted its holdings in Bath & Body Works by 217.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after acquiring an additional 801 shares during the period. Parallel Advisors LLC boosted its holdings in Bath & Body Works by 42.6% during the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after acquiring an additional 567 shares during the period. Danske Bank A S acquired a new position in Bath & Body Works in the 3rd quarter valued at about $39,000. Finally, Advisory Services Network LLC acquired a new position in Bath & Body Works in the 3rd quarter valued at about $48,000. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

Bath & Body Works News Roundup

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: BBWI reported adjusted earnings of $0.62 per share, well above the $0.24 consensus estimate, while revenue of $1.51 billion modestly exceeded expectations. Adjusted EPS also rose substantially from the year-ago period. Bath & Body Works Q2 earnings and revenues surpass estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80 from $2.40-$2.65 and expects revenue of approximately $7.5-$7.6 billion. The company cited digital demand, direct-sales growth and ongoing cost savings as key supports. Bath & Body Works lifts annual profit forecast
• Positive Sentiment: The company said its transformation is progressing, with improvements to the digital shopping experience supporting direct-channel sales. Strong cash generation and planned cost reductions could improve the balance sheet and create longer-term potential for debt repayment or buybacks. Bath & Body Works reports second-quarter results
• Neutral Sentiment: Despite the earnings beat, quarterly net sales fell 2.3% year over year. Digital demand offset, but did not fully eliminate, weaker store traffic, leaving investors focused on whether the turnaround can produce sustained top-line growth. Bath & Body Works results top expectations
• Negative Sentiment: BBWI’s third-quarter adjusted EPS outlook of just $0.07-$0.12 is well below the roughly $0.27 analyst consensus, although projected revenue of $1.6-$1.7 billion is broadly in line. This near-term profit warning appears to be the main reason the stock weakened following the results.
• Negative Sentiment: Unusually heavy put-option activity before earnings—23,399 puts, about 550% above average—signaled elevated downside hedging and may have amplified the negative reaction. Retail’s big Q2 beats came from Washington, not the consumer

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Telsey Advisory Group lowered their price objective on Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating for the company in a research report on Thursday, May 28th. Wells Fargo & Company lifted their target price on Bath & Body Works from $25.00 to $26.00 and gave the company an “overweight” rating in a research report on Tuesday, June 23rd. Morgan Stanley reaffirmed an “equal weight” rating and issued a $22.00 price target on shares of Bath & Body Works in a research note on Monday, July 6th. TD Cowen increased their price target on Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. Finally, UBS Group reissued a “neutral” rating on shares of Bath & Body Works in a research report on Wednesday, August 19th. Four equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Bath & Body Works currently has a consensus rating of “Hold” and an average target price of $22.57.

Bath & Body Works Company Profile

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.