Bath & Body Works Q2 2026 Earnings Call Summary
In the second quarter of 2026, Bath & Body Works (BBWI) reported better-than-expected results. Net sales declined by 2.3%, which was ahead of its guidance range of a 5% to 3% drop. Adjusted earnings per diluted share came in at $0.62, surpassing the company's forecast of between $0.20 and $0.25. This performance included an unexpected benefit from approximately $80 million in tariff refunds received during the quarter. Despite these positive results, underlying business pressures remain evident. Sequential improvements were noted across key areas such as body care, digital sales returning to growth, and accelerated expansion of distribution channels. CEO Daniel Heaf emphasized that while progress is being made with their 'Consumer First Formula' strategy, it has not yet led to a significant turnaround in the overall performance. Based on Q2 results, Bath & Body Works revised its full-year guidance upward for adjusted earnings per diluted share and narrowed net sales expectations. The company reiterated that 2026 is an investment year as part of a multiyear transformation aimed at restoring sustainable growth.
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Topics: Conference Call Earnings Retail