Q2 27 EPS
$0.32
BEAT +10.00%
Est. $0.29
Q2 27 Revenue
$1.38B
BEAT +1.31%
Est. $1.36B
vs S&P Since Q2 27
+13.0%
BEATING MARKET
BBWI +13.6% vs S&P +0.6%
Market Reaction
Did BBWI Beat Earnings? Q2 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 persis… Read more 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
BBWI 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
Q2 2027 vs Q2 2026, source: SEC Filings
BBWI Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Daniel Heaf, Q2 2027 Earnings Press Release
BBWI Earnings Trends
BBWI vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
BBWI EPS Trend
Earnings per share: estimate vs actual
BBWI Revenue Trend
Quarterly revenue: estimate vs actual
BBWI Quarterly Results
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 27 BEAT | $0.29 | $0.32 | +10.00% | $1.38B | +1.31% |
| Q1 27 BEAT | $0.29 | $0.32 | +10.00% | $1.38B | +1.31% |
| Q4 26 BEAT FY | $1.77 | $2.05 | +15.80% | $2.72B | +4.23% |
| FY Full Year | $2.95 | $3.21 | +8.70% | $7.29B | +1.55% |
| Q3 26 MISS | $0.40 | $0.35 | -11.88% | $1.59B | -2.37% |
| Q2 26 MISS | $0.38 | $0.37 | -1.88% | $1.55B | -0.37% |
| Q1 26 BEAT | $0.47 | $0.49 | +3.99% | $1.42B | -0.02% |
| Q4 25 BEAT FY | $2.04 | $2.09 | +2.23% | $2.79B | +0.42% |
| FY Full Year | — | $3.61 | — | $7.31B | — |