Bath & Body Works posted mixed results in its second quarter, ending on 1 August, 2026, with net sales decreasing by 2.3 per cent year-on-year to $1.5bn.
The company’s second quarter operating income was $216m compared to $157m in the year prior, which was boosted by investments appealing to customers according to the business.
Bath & Body Works’ net income increased to $118m in comparison to $64m last year, and the earnings per diluted share (EPS) was $0.58 for the second quarter, up from $0.30 in Q2 2025.
The business reported an adjusted operating income of $225m, and adjusted net income was $125m, excluding pre-tax costs of $9m, which were associated with business transformation initiatives.
The reported results included a benefit of approximately $80m of tariff refunds received in the quarter.
Daniel Heaf, CEO of Bath & Body Works, said: “Our second-quarter results exceeded our sales and earnings per share guidance. Underlying business trends remain pressured, but we are seeing further evidence that elements of the Consumer First Formula are beginning to work.
“We delivered sequential improvement in body care, stronger AUR on new product innovation, improved brand discoverability, and continued momentum across our marketplace partnerships.”
Moving forward, the company has lowered its future outlook and expects net sales to decline between 4 per cent and 2.5 per cent.
However, Bath & Body Works raised its projections for its full-year 2026 EPS guidance to between $3.13 and $3.33 compared to $3.11 in fiscal 2025.
The company expects to generate free cash flow of approximately $650m in fiscal 2026.
Heaf added: “These proof points strengthen our confidence in the strategy, but we remain in the early stages of the transformation.
“Our priority remains improving the trajectory of the business while continuing to build the product, brand, and marketplace capabilities that we believe will position Bath & Body Works for sustainable, durable growth in 2027.”
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