Bath & Body Works (BBWI) Q2 2026 Earnings
Adjusted EPS excludes $9 million pre-tax ($7 million after tax) in business transformation costs. Additionally, reported and adjusted results include approximately $80 million of tariff refunds received in the quarter; excluding this benefit, adjusted EPS would have been $0.31.
How Did BBWI Stock React to Q2 2026 Earnings?
Did BBWI Beat Earnings? Q2 2026 Results
Yes. Bath & Body Works reported Q2 2026 earnings of $0.62 a share on Aug 26, 2026, beating the $0.24 consensus estimate by 154.9%. Revenue was $1.5B against a $1.5B estimate.
Bath & Body Works posted a headline-grabbing second quarter, with adjusted EPS of $0.62 clearing the $0.24 consensus estimate by 154.93%, though the result carried an important asterisk: roughly $80 million in tariff refunds received during the period materially inflated the bottom line, and the company was candid that earnings would have looked far more modest without that benefit. Revenue of $1.51 billion edged past estimates by 1.16% but still slipped 2.3% from a year ago, reflecting continued softness in U.S. and Canadian store traffic even as the direct channel posted its first year-over-year growth since 2021 and international sales surged 24.9%. Gross profit climbed to $692 million from $640 million, aided by lower cost of goods alongside the tariff windfall. Management raised its full-year adjusted EPS guidance to $2.60-$2.80 while narrowing its net sales outlook to a decline of 4% to 2.5%, though Q3 guidance proved notably cautious, with adjusted EPS of just $0.07-$0.12 anticipated versus $0.35 in the prior-year period, signaling the transformation under CEO Daniel Heaf remains a work in progress.
- Approximately $80 million in tariff refunds received in Q2 significantly boosted results
- Direct channel delivered first net sales growth since 2021
- International and Other sales grew 24.9% year-over-year
- Gross margin improvement from lower costs of goods sold
- Reduced general, administrative and store operating expenses
“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.”
Bath & Body Works CEO, on the earnings call
What Is Bath & Body Works's Outlook?
Bath & Body Works narrowed its full-year 2026 net sales guidance to a decline of 4% to 2.5% compared to $7,291 million in fiscal 2025. Full-year GAAP EPS guidance was raised to $3.13–$3.33 and adjusted EPS guidance raised to $2.60–$2.80. The company expects to generate approximately $650 million in free cash flow for fiscal 2026 (based on forecasted operating cash flow of $890 million less $240 million in capital expenditures). For Q3 2026, net sales are expected to decline 5% to 2.5% versus $1,594 million in Q3 2025, with GAAP EPS of $0.05–$0.10 and adjusted EPS of $0.07–$0.12, well below the prior-year Q3 adjusted EPS of $0.35. No share repurchases are assumed in the outlook.
BBWI YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.5B | −2.3% |
| Gross Profit | $692.0M | $640.0M | +8.1% |
| Operating Income | $216.0M | $157.0M | +37.6% |
| Net Income | $118.0M | $64.0M | +84.4% |
BBWI Revenue by Segment
When Does Bath & Body Works Report Next?
Figures from SEC filings and company reports. Not investment advice.