Corrected: Bath & Body Works Q2 profit beats on online shopping; lifts EPS guidance

Bath & Body Works

26/08/2026 12:04

Corrects adjusted EPS figure in table to $0.31 from $0.62 to exclude tariff refund benefit, and drops estimate figure for adjusted net income

Overview
U.S. personal care retailer's Q2 net sales fell 2.3% but met analyst expectations
Adjusted EPS for Q2 beats analyst expectations
Company raised full-year adjusted EPS guidance, narrowed net sales outlook to a decline of 4% to 2.5%

Outlook
Company narrows 2026 net sales guidance to a decline of 4% to 2.5%
Bath & Body Works raises 2026 EPS guidance to $3.13-$3.33; adjusted EPS to $2.60-$2.80
Company expects Q3 net sales to decline 5% to 2.5% and adjusted EPS of $0.07-$0.12

Result Drivers
DIGITAL ENHANCEMENTS - Co said growth in Direct net sales was driven by improvements to the digital shopping experience
BODY CARE IMPROVEMENT - Co cited sequential improvement in Body Care category as a positive factor
TARIFF REFUNDS - Co said Q2 adjusted earnings benefited from $80 mln in tariff refunds received in the quarter

Company press release: ID:nGNX8GqtZq

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Meet
$1.50 bln
$1.50 bln (15 Analysts)
Q2 Adjusted EPS
Beat
$0.31
$0.24 (16 Analysts)
Q2 EPS
 
$0.58
 
Q2 Adjusted Net Income
 
$125 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for Bath & Body Works, Inc. is $23.00, about 30.8% above its August 25 closing price of $17.58
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

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Aug 25 - China's Cheerwin Group H1 revenue jumps, helped by online channel growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)