Companies /Consumer Cyclical

Bath & Body Works Inc

NYSE: BBWI Specialty Retail
$16.73
▲ $0.01 (+0.06%) today
Markets closed · 7:28pm ET

Q1 2027 Earnings

Reported May 27, 2026, 7:12am ET · SEC source
$0.32
Beat +10.00%
EPS · est. $0.29
$1.4B
Beat +1.31%
Revenue · est. $1.4B
+22.1%
Beating market
BBWI vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−15%−10%−5%0May 27May 28report 7:12am ETearnings+0.2%−1.8%
−15%−10%−5%0May 27May 28earnings+0.2%−1.8%
BBWI −1.8%S&P 500 +0.2%
−15%−10%−5%0May 27May 28report 7:12am ETearnings+0.1%−1.8%
−15%−10%−5%0May 27May 28earnings+0.1%−1.8%
BBWI −1.8%NASDAQ +0.1%
−10%−5%0+5%May 26Jun 4report 7:12am ETearnings+0.1%−7.4%
−10%−5%0+5%May 26Jun 4earnings+0.1%−7.4%
BBWI −7.4%S&P 500 +0.1%
−10%−5%0+5%May 26Jun 4report 7:12am ETearnings+0.2%−7.4%
−10%−5%0+5%May 26Jun 4earnings+0.2%−7.4%
BBWI −7.4%NASDAQ +0.2%
+9.70%
Day of report
+4.68%
Next session
−7.35%
One week
+20.82%
30 days

S&P 500 over the same 30 days: −1.26%.

Did BBWI Beat Earnings? Q1 2027 Results

Bath & Body Works delivered a cleaner-than-expected first quarter, with adjusted EPS of $0.32 beating the $0.29 consensus by 10.00% and revenue of $1.38 billion edging past estimates by 1.31%, even as net sales slipped 3.2% year-over-year amid persistent softness in body care. The headline story, however, was the gap between GAAP results and underlying performance: one-time gains, including an $88 million litigation settlement and a $62 million tax benefit, pushed GAAP EPS to $0.90, while adjusted operating income fell to $151 million from $209 million a year ago, underscoring real margin pressure on the core business. CEO Daniel Heaf acknowledged results remain below the brand's potential, framing progress within a multi-year transformation that he expects to gain traction through the balance of 2026 and more meaningfully into 2027. The company reaffirmed full-year adjusted EPS guidance of $2.40 to $2.65, though its Q2 outlook, calling for net sales to decline 3% to 5%, landed below analyst expectations, tempering some of the post-earnings enthusiasm.

Key Takeaways
  • Payment card interchange fee litigation settlements contributed $88 million pre-tax gain
  • Resolution of certain tax matters provided $62 million tax benefit
  • Net sales declined 3.2% year-over-year driven by weakness in Stores and Direct channels
  • International segment grew 9.0% year-over-year
  • Gross profit margin compressed as COGS increased despite lower sales
  • Debt extinguishment resulted in $8 million pre-tax loss
  • Business transformation costs of $8 million related to Consumer First Formula execution

“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

Forward Guidance & Outlook

Bath & Body Works reaffirmed full-year fiscal 2026 guidance: net sales expected 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 of approximately $600 million (operating cash flow of $870 million less capital expenditures of $270 million). No share repurchases or tariff refunds are assumed. For Q2 2026, net sales are expected to decline 5% to 3% compared to $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

Q1 2027 vs Q1 2026 · SEC filings Q1 2026 Q1 2027
$0$400.0M$800.0M$1.2B$1.4B$1.4BRevenue$646.0M$587.0MGross Profit$209.0M$231.0MOperating Income$105.0M$183.0MNet Income
$0$400.0M$800.0M$1.2BRevenueGross ProfitOperating IncomeNet Income

BBWI Revenue by Segment

Stores - U.S. and Canada$1.1B−4.3%
Direct - U.S. and Canada$246.0M−1.5%
International$70.0M+9.0%

Figures from SEC filings and company reports. Not investment advice.