Bath & Body Works Reports Digital Growth but Faces Overall Sales Decline
In Q2 2026, Bath & Body Works (BBWI) saw a modest recovery in its direct-to-consumer digital sales with a 3% year-over-year increase to $275 million. This marked the first growth since 2021 and was driven by improved e-commerce strategies such as lowering free-shipping thresholds and enhancing customer experience online. However, total net sales for the company declined by 2.3%, reaching $1.51 billion, with store sales in North America falling sharply by 5.4% to $1.13 billion. The digital gains were not enough to offset this significant drop in physical retail performance. CEO Daniel Heaf noted that while there are positive signs from the e-commerce channel and new customer acquisition through platforms like Amazon and Ulta Beauty, these improvements have yet to signal a broader turnaround. Despite progress in online sales and expanded distribution channels, core categories such as body care continue to underperform. The company now forecasts 2026 non-GAAP free cash flow of around $650 million, which will support ongoing digital investments but may not be sufficient to reverse the overall revenue decline.
Topics: digital transformation e-commerce sales decline store traffic