Bath & Body Works (BBWI) Q2 2025 Earnings
Excludes $15 million pre-tax ($14 million after-tax) leadership transition costs related to severance for certain members of the leadership team
How Did BBWI Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +2.66%.
Did BBWI Beat Earnings? Q2 2025 Results
No. Bath & Body Works reported Q2 2025 earnings of $0.37 a share on Aug 28, 2025, missing the $0.38 consensus estimate by 1.9%. Revenue was $1.5B against a $1.6B estimate.
Bath & Body Works posted a modest earnings miss in its fiscal second quarter, with adjusted EPS of $0.37 falling just short of the $0.38 consensus and revenue of $1.55 billion coming in fractionally below expectations, sending shares lower in the days following the report. The results reflected a 1.5% year-over-year revenue gain, driven largely by a 4.9% increase in U.S. and Canadian store sales to $1.20 billion, though a 10.1% decline in the direct e-commerce channel to $267 million weighed on the top line and highlighted a gap that new CEO Daniel Heaf has made central to his strategic agenda. Higher SG&A expenses, including $15 million in pre-tax leadership transition costs tied to executive severance, further pressured margins and contributed to the miss. Still, management struck a confident tone on the outlook, raising the low end of full-year adjusted EPS guidance to $3.35 from $3.25 while narrowing the net sales growth range to 1.5% to 2.7%, with the updated figures explicitly incorporating current tariff rates.
- Stores - U.S. and Canada revenue up 4.9%, driving overall sales growth
- Direct channel declined 10.1%, partially offsetting store gains
- International revenue declined 2.9%
- Interest expense decreased to $68 million from $77 million year-over-year
“Our team delivered a solid quarter, with revenue and adjusted earnings per share at the high end of our guidance range. Based on our strong first-half results and our confidence in our outlook, we are raising the low end of our full-year adjusted earnings per share guidance range.”
Bath & Body Works CEO, on the earnings call
What Was Bath & Body Works's Outlook in Q2 2025?
The company narrowed full-year 2025 net sales growth guidance to 1.5%–2.7% (from 1%–3%) versus $7,307 million in fiscal 2024. Full-year GAAP EPS is expected at $3.28–$3.53. The low end of adjusted EPS guidance was raised to $3.35–$3.60 (from $3.25–$3.60), inclusive of current tariff rates. Share repurchase expectations were increased to $400 million from $300 million. Free cash flow is expected at $750–$850 million. For Q3 2025, the company expects net sales growth of 1%–3% vs. $1,610 million in Q3 2024, and EPS of $0.37–$0.45 vs. $0.49 in Q3 2024.
BBWI YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.5B | $1.5B | +1.5% |
| Gross Profit | $640.0M | $626.0M | +2.2% |
| Operating Income | $157.0M | $183.0M | −14.2% |
| Net Income | $64.0M | $152.0M | −57.9% |
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.