Bath & Body Works (BBWI) Q1 2026 Earnings
GAAP EPS of $0.90 includes an $88M pre-tax gain ($66M after tax) from interchange fee litigation settlements, $8M pre-tax business transformation costs ($6M after tax), $8M pre-tax loss on debt extinguishment ($6M after tax), $3M pre-tax gain on sale of non-core asset ($3M after tax), and a $62M tax benefit from resolution of certain tax matters.
How Did BBWI Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: −1.26%.
Did BBWI Beat Earnings? Q1 2026 Results
Yes. Bath & Body Works reported Q1 2026 earnings of $0.32 a share on May 27, 2026, beating the $0.29 consensus estimate by 10.0%. Revenue was $1.4B against a $1.4B estimate.
Bath & Body Works delivered a first-quarter beat on both the top and bottom lines, though the results told a more complicated story beneath the surface. The company posted adjusted EPS of $0.32, clearing the $0.29 consensus by 10.00%, while net sales of $1.38 billion edged past estimates by 1.31%, even as revenue slipped 3.2% from the year-ago period. The core business remains under pressure, with adjusted operating income falling to $151.00 million from $209.00 million a year ago, reflecting continued softness in the U.S. and Canada store channel, which saw a 4.3% sales decline. The standout narrative this quarter was one-time item noise: an $88.00 million pre-tax gain from payment card interchange fee litigation settlements and a $62.00 million tax benefit from resolved tax matters lifted GAAP EPS to $0.90, though analysts flagged the adjusted figure as the more meaningful signal for tracking the underlying business. Management reaffirmed full-year 2026 guidance, projecting adjusted EPS of $2.40 to $2.65 and free cash flow of approximately $600.00 million, with CEO Daniel Heaf acknowledging results fell short of the brand's potential and pointing to the Consumer First Formula as the vehicle for a more meaningful recovery in 2027.
- Q1 results exceeded guidance but net sales declined 3.2% year-over-year
- U.S. and Canada store sales declined 4.3%
- Direct (e-commerce) channel declined 1.5%
- International and Other grew 9.0%
- $88 million pre-tax gain from interchange fee litigation settlements boosted GAAP results
- $62 million tax benefit from resolution of certain tax matters
- Gross profit declined to $587 million from $646 million
- Adjusted operating income declined to $151 million from $209 million
“Our first-quarter results exceeded guidance, but remain below the standard our brand is capable of delivering. That reality reinforces the urgency with which we are executing the Consumer First Formula. Our efforts to strengthen our hero categories, modernize the brand, and expand our reach are beginning to resonate with consumers, and we are encouraged by the early proof points we are seeing.”
Bath & Body Works CEO, on the earnings call
What Was Bath & Body Works's Outlook in Q1 2026?
The company reaffirmed full-year 2026 guidance: net sales to decline 4.5% to 2.5% compared to $7,291 million in fiscal 2025; GAAP EPS of $3.00 to $3.25; adjusted EPS of $2.40 to $2.65. Free cash flow is expected to be approximately $600 million (operating cash flow of ~$870 million less ~$270 million in capital expenditures). No share repurchases or tariff refunds are assumed. For Q2 2026, net sales are expected to decline 5% to 3% versus $1,549 million in Q2 2025, with EPS of $0.20 to $0.25. Management expects the impact of the Consumer First Formula to build through the balance of 2026 and more meaningfully into 2027.
BBWI YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $1.4B | $1.4B | −3.2% |
| Gross Profit | $587.0M | $646.0M | −9.1% |
| Operating Income | $231.0M | $209.0M | +10.5% |
| Net Income | $183.0M | $105.0M | +74.3% |
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.