Bath & Body Works Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.68%.
Did BBWI Beat Earnings? Q1 2026 Results
Bath & Body Works posted a solid first quarter of fiscal 2025, beating earnings expectations while revenue landed essentially in line with Wall Street. The company reported adjusted earnings per diluted share of $0.49, ahead of the $0.47 consensus estimate by 3.99%, while net sales rose 2.9% year over year to $1.42 billion, finishing at the high end of its own guidance range. The earnings strength was underpinned by meaningful operating leverage, with gross profit expanding to $646 million from $606 million a year ago, even as interest expense declined to $71 million from $82 million thanks to ongoing debt reduction. U.S. and Canada stores led the top-line charge, with sales climbing 4.3% to $1.11 billion, though the direct channel slipped 4.3% to $250 million. The quarter also brought a notable leadership shift, as the company appointed former Nike executive Daniel Heaf as CEO. Looking ahead, Bath & Body Works reaffirmed its full-year guidance of 1% to 3% sales growth and EPS of $3.25 to $3.60, inclusive of current tariff assumptions.
- Positive customer response to fragrance innovation drove net sales growth
- U.S. and Canada store channel up 4.3%, outperforming e-commerce
- International sales grew 10.1% year-over-year
- Predominantly U.S.-based supply chain providing tariff insulation
- Interest expense declined to $71 million from $82 million due to debt reduction
“I'm honored to join this iconic brand with a deep sense of purpose and a powerful foundation. I have already had the privilege of meeting many associates across the company, and I'm incredibly impressed by the passion, dedication, and talent across our teams. I believe we're incredibly well positioned to define and lead the home fragrance and beauty categories globally and accelerate growth.”
Bath & Body Works CEO, on the earnings call
Forward Guidance & Outlook
Bath & Body Works maintains full-year fiscal 2025 net sales guidance of 1% to 3% growth (compared to $7,307 million in fiscal 2024) and earnings per diluted share of $3.25 to $3.60, inclusive of current tariff rates. The outlook includes approximately $300 million of cash deployed towards share repurchases and forecasted free cash flow of $750 million to $850 million. For Q2 2025, the company expects net sales flat to up 2% compared to $1,526 million in Q2 2024, and EPS of $0.33 to $0.38. Guidance excludes an estimated $0.05 negative EPS impact from the CEO transition.
BBWI YoY Financials
BBWI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.