Bath & Body Works Inc

Bath & Body Works fell just short of Wall Street's expectations in the second quarter of fiscal 2026, delivering adjusted earnings per diluted share of $0.37, a narrow 1.88% miss against the $0.38 consensus estimate, while revenue of $1.55 billion came in 0.37% below forecasts despite growing 1.5% year over year. The quarter's story was one of channel divergence, with a strong 4.9% gain in U.S. and Canadian store sales to $1.20 billion offset by a 10.1% slide in e-commerce to $267 million and a 2.9% decline in international revenue, leaving overall results in line with the high end of the company's own guidance. Higher general, administrative, and store operating expenses, which climbed to $483 million from $443 million a year ago and included $15 million in leadership transition costs, pressured operating income and contributed to the headline miss. The stock fell roughly 5% in premarket trading following the report. Looking ahead, management raised the low end of full-year adjusted EPS guidance to $3.35, keeping the high end at $3.60, while narrowing net sales growth guidance to 1.5% to 2.7% for fiscal 2025.