Bath & Body Works reported second-quarter earnings that exceeded analyst forecasts, prompting an upward revision to its annual outlook. The Columbus, Ohio-based retailer posted adjusted earnings per share of $0.62, well above the $0.24 consensus estimate, according to data compiled by Investing.com.
Revenue for the quarter totaled $1.5 billion, roughly in line with the $1.5 billion estimate, though down 2.3% from the same period last year. The decline in sales followed a prolonged period of contraction, marking the first instance of direct net sales growth since 2021, the company noted.
Chief Executive Officer Daniel Heaf attributed the improvement to the company’s Consumer First Formula, which focuses on enhancing the shopping experience. "Underlying business trends remain pressured, but we are seeing further evidence that elements of the Consumer First Formula are beginning to work," Heaf stated. He added that investments over the past year have strengthened the customer proposition, contributing to the sales rebound.
For the third quarter, Bath & Body Works forecast net sales to decline between 2.5% and 5% year-over-year, from $1.59 billion in the same period of 2024. Adjusted earnings per diluted share are projected in the range of $0.07 to $0.12, below the $0.26 consensus estimate.
The company narrowed its full-year 2026 net sales guidance to a decline of 2.5% to 4%, compared with $7.29 billion in fiscal 2025. Adjusted earnings per share guidance was raised to a range of $2.60 to $2.80, up from the prior $2.40 to $2.65 range and surpassing the $2.65 consensus estimate.
Shares of Bath & Body Works were indicated higher in premarket trading on Tuesday.
