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Bath & Body Works Posts Big Q2 Profit Beat but Stock Slides on Tariff Boost Concerns and Weak Sales Outlook

By Market Flux··1 min read

Bath & Body Works, Inc. $BBWI

$18.81+7.00%as of publication

5D Change
-3.74%
Volume
53
vs Average
26.5×
Market Cap
$3.86B

Bath & Body Works reported second-quarter adjusted earnings per share of $0.62, crushing the consensus estimate of $0.24 and rising 68% year over year, while net income hit $118 million against an estimate of $49.4 million, up 84% year over year. Net sales came in at $1.51 billion, down 2.3% from a year earlier but roughly in line with forecasts. A significant portion of the profit outperformance was driven by an $80 million tariff refund; Seeking Alpha noted that adjusted EPS without that benefit would have been approximately $0.31.

Within the business, U.S. and Canada store sales fell 5.4% to $1.1 billion, while direct sales rose 3% to $275 million, marking the first quarter of direct net sales growth since 2021. International and other revenue jumped 24.9% to $108 million. Management acknowledged that underlying business trends remain pressured.

For the full year, Bath & Body Works raised its adjusted EPS outlook to $2.60 to $2.80, up from prior guidance of $2.40 to $2.65, and narrowed net sales guidance to a decline of 4% to 2.5%. Free cash flow is expected at approximately $650 million. Third-quarter guidance was cautious, with net sales projected to fall 2.5% to 5% and adjusted EPS of just $0.07 to $0.12.

Shares fell roughly 3% to 4% in premarket trading despite the headline beat, with the stock recovering somewhat by afternoon, as investors weighed the one-time tariff benefit, continued store traffic weakness, and a path to revenue growth that management does not expect to materialize until 2027.

© AI-generated summary is provided by Market Flux

Sources

  1. WallstengineToday's Key Events (All EST) — 08/26/2026 07:00: US MBA Mortgage Applications 08:30: US Durable Goods Orders 08:30: US PCE Price Index 08:30: US Prelim GDP q/q 11:45: Fed's Barkin 13:00: US 5-Year Note Auction Before Open 04:00: UP Fintech Holding $TIGR 04:30: $LI Auto 06:00: Super Hi $HDL 06:00: Donaldson Company $DCI 06:45: Movado Group $MOV 06:50: Bath & Body Works $BBWI 06:50: JinkoSolar Holding Co. $JKS 07:00: Kohl's $KSS 07:00: Dycom Industries $DY 07:00: The J.M. Smucker $SJM 07:00: Photronics $PLAB 07:30: Abercrombie & Fitch $ANF 09:00: Williams-Sonoma $WSM After Hours 16:00: Salesforce $CRM 16:00: $OKTA 16:00: Nutanix $NTNX 16:05: CrowdStrike Holdings $CRWD 16:05: Synopsys $SNPS 16:05: Veeva Systems $VEEV 16:05: Agilent Technologies $A 16:05: Everpure $P 16:05: Urban Outfitters $URBN 16:05: Lantronix $LTRX 16:15: $HPQ 16:15: $OOMA 16:20: NVIDIA $NVDA 16:30: Phibro Animal Health $PAHC AMC: Standard Nuclear $STDN Follow @wallstengine for detailed earnings highlights from many of these companies throughout the day
  2. benzinga.comBath & Body Works Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
  3. MarketsdayUS #Earnings Calendar — August 26 Nvidia $NVDA CrowdStrike $CRWD Synopsys $SNPS Agilent Technologies $A Veeva Systems $VEEV Williams-Sonoma $WSM Okta $OKTA Nutanix $NTNX Five Below $FIVE Urban Outfitters $URBN Abercrombie & Fitch $ANF Bath & Body Works $BBWI #EarningsCalendar #USMarkets #Nvidia #CrowdStrike #Synopsys #Agilent #Veeva #WilliamsSonoma #Okta #Nutanix #FiveBelow #UrbanOutfitters #Abercrombie #BathBodyWorks
  4. ReutersBath & Body Works lifts annual profit forecast as digital demand offsets weak store traffic
  5. reuters.comBath & Body Works lifts annual profit forecast as digital demand offsets weak store traffic
  6. MikeZaccardiProbably some solid retailer tape bombs this morning $ANF $BBWI $KSS @wallsthorizon @christinelshort
  7. wsj.comBath & Body Works Raises Earnings Outlook on Higher Profit
  8. WsjBath & Body Works Raises Earnings Outlook on Higher Profit
Show 12 more
  1. ZerohedgePremarket movers Mag 7 stocks are mostly higher as Wall Street is eagerly anticipating Nvidia’s earnings on Wednesday afternoon, not so much for what the numbers will say about the chip giant, but for what they mean to artificial intelligence investors and the market itself. Nvidia (NVDA) climbs 0.2%; Meta Platforms +1.5%, Amazon +0.2%, Alphabet +0.1%, Apple 0.0%, Tesla -0.1%, Microsoft -0.7% Bath & Body Works (BBWI) falls 3% after the retailer posted second quarter results and providing a year forecast. Dycom Industries (DY) falls 4% after the builder of fiber-optic systems for cable TV operators posted second quarter results and provided a forecast. Intuit (INTU) declines 11% after the tax-preparation software company gave a full-year forecast for both adjusted earnings and revenue that was weaker than expected. JM Smucker (SJM) rises 3% after the food company boosted its adjusted earnings per share guidance for the full year. Kohl’s (KSS) falls 4% after the department-store chain posted second quarter results. Neogen (NEOG) gains 3% as Piper Sandler upgrades the food processing firm to overweight following several consecutive quarters of improving performance. NCino (NCNO) falls 6% after the midpoint forecast for subscription revenue in the third quarter missed the average analyst estimate. Photronics (PLAB) climbs 17% after the semiconductor supplier reported adjusted earnings per share for the third quarter that beat the average analyst estimate. Semtech (SMTC) gains 4% after the semiconductor device company reported second-quarter results that beat expectations and gave an outlook that was much stronger than the analyst consensus. SolarEdge Technologies (SEDG) gains 7% as UBS upgrades to buy, saying the solar company is positioned for market-share gains following the FCC ban on new inverter model imports. Spyre Therapeutics (SYRE) sinks 11% after the drug developer said a mid-stage trial of its experimental drug for rheumatoid arthritis, an autoimmune disease, fell short of the company’s internal bar to develop it as a monotherapy. Summit Therapeutics (SMMT) rises 8% after the cancer drug developer gave results from a late-stage trial of its experimental therapy, ivonescimab, as a treatment for biliary tract cancer. Analysts note that its the drug’s first success in a late-stage trial outside of lung cancer. Zoom Communications (ZM) falls 6% after the software company gave outlooks for adjusted third-quarter earnings and operating income that were weaker than expected.
  2. NasdaqBath & Body Works, Inc. Q2 Income Climbs
  3. BloombergBath & Body Works Narrows Guidance Amid Turnaround Push
  4. Seeking AlphaBath & Body Works falls despite Q2 earnings beat, raised outlook
  5. OpenOutcrier$BBWI (-3.9% pre) Bath & Body Works falls despite Q2 earnings beat, raised outlook
  6. Yahoo FinanceBath & Body Works lifts full-year earnings outlook after Q2 profit beats forecasts
  7. proactiveinvestors.comBath & Body Works results top expectations, lower third quarter earnings expected
  8. marketbeat.comBath & Body Works Q2 Earnings Call Highlights
  9. BarronsonlineBath & Body Works Stock Climbs on Earnings Beat. Guidance Is Mixed.
  10. MarketRebelsIncreasing unusual option volume: $DKS $VERA $CRON $BBWI $AS $ARDX $VSTM $ENR $MAIN $EWZ $XEL
  11. SeekingAlphaBath & Body Works $BBWI reported a Q2 earnings beat with adjusted EPS of $0.62, supported by $80M in tariff refunds! KEY HIGHLIGHTS: Q2 net sales fell 2.3% YoY to $1.51B as store traffic faced near-term headwinds Adjusted EPS of $0.62 includes an $80M tariff refund boost ($0.31 without the benefit) Raised FY26 EPS outlook to $3.13–$3.33 & narrowed sales guidance to -4% to -2.5% THE RATING: One-time tariff benefits counterbalance revenue contraction, keeping the Seeking Alpha Quant score for $BBWI at a HOLD.
  12. BusinessBath & Body Works expects full-year sales to decline slightly less that it previously did, a sign that attempts to revive growth and turn around its business might be gaining traction.