Bath & Body Works (NYSE:BBWI) Releases Quarterly Earnings Results, Beats Expectations By $0.38 EPS

Posted by Francis Steltz on Aug 28th, 2026

Bath & Body Works (NYSE:BBWI – Get Free Report) released its quarterly earnings data on Wednesday. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.38, FiscalAI reports. Bath & Body Works had a net margin of 10.83% and a negative return on equity of 53.48%. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same quarter in the previous year, the business earned $0.30 EPS. Bath & Body Works’s quarterly revenue was down 2.3% compared to the same quarter last year. Bath & Body Works updated its Q3 2026 guidance to 0.070-0.120 EPS and its FY 2026 guidance to 2.600-2.800 EPS.

Here are the key takeaways from Bath & Body Works’ conference call:

Second-quarter results exceeded expectations: net sales declined 2.3% to $1.5 billion, ahead of guidance, while adjusted EPS was $0.62, including an approximately $80 million tariff-refund benefit.
Management raised full-year adjusted EPS guidance to $2.60-$2.80 and narrowed the sales outlook to a 4% to 2.5% decline, supported by cost savings, lower capital spending, and improved second-quarter performance.
Early initiatives under the Consumer First Formula showed traction, including a return to digital growth, sequential body-care improvement, strong Fruit Fusion demand, and rapid expansion through Amazon and Ulta. Amazon sales more than tripled sequentially, while the company reported no observed cannibalization of owned channels so far.
The underlying business remains pressured, with store traffic still weak and body care below expectations; management expects third-quarter sales to decline 5% to 2.5% and adjusted EPS of only $0.07-$0.12.
Tariff refunds provided a significant one-time second-quarter earnings lift, while forward tariffs and input-cost inflation are expected to create approximately $30 million of pressure in the second half. The company is also increasing Consumer First Formula investments by about $35 million, primarily in marketing.

Bath & Body Works Trading Down 1.2%

BBWI opened at $18.68 on Friday. The business has a 50 day moving average of $20.32 and a 200-day moving average of $19.97. The stock has a market capitalization of $3.76 billion, a price-to-earnings ratio of 4.86, a P/E/G ratio of 1.84 and a beta of 1.38. Bath & Body Works has a 1-year low of $14.27 and a 1-year high of $32.32.

Bath & Body Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, August 21st. Bath & Body Works’s dividend payout ratio is currently 20.83%.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Telsey Advisory Group lowered their price objective on Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating on the stock in a report on Thursday, May 28th. Raymond James Financial reiterated a “market perform” rating on shares of Bath & Body Works in a report on Wednesday, May 27th. Jefferies Financial Group raised their target price on shares of Bath & Body Works from $22.00 to $23.00 and gave the company a “hold” rating in a research note on Tuesday, July 28th. UBS Group dropped their target price on shares of Bath & Body Works from $19.00 to $17.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Citigroup raised shares of Bath & Body Works from a “neutral” rating to a “buy” rating and set a $25.00 target price for the company in a research report on Tuesday, August 18th. Four research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $22.29.

Get Our Latest Stock Report on Bath & Body Works

Institutional Trading of Bath & Body Works

Hedge funds have recently bought and sold shares of the stock. Global Retirement Partners LLC bought a new position in shares of Bath & Body Works during the 4th quarter worth about $31,000. Geneos Wealth Management Inc. increased its stake in Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after acquiring an additional 801 shares during the period. Parallel Advisors LLC raised its holdings in Bath & Body Works by 42.6% in the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after acquiring an additional 567 shares in the last quarter. Danske Bank A S bought a new stake in shares of Bath & Body Works in the 3rd quarter worth approximately $39,000. Finally, Advisory Services Network LLC acquired a new stake in shares of Bath & Body Works during the 3rd quarter worth approximately $48,000. 95.14% of the stock is owned by institutional investors.

Key Stories Impacting Bath & Body Works

Here are the key news stories impacting Bath & Body Works this week:

Positive Sentiment: BBWI reported second-quarter adjusted EPS of $0.62, well above the $0.24 consensus estimate, while revenue of $1.51 billion modestly exceeded expectations. The earnings beat was supported by demand for body-care and home-fragrance products and improved digital sales. BBWI Stock Jumps 7.5% on Q2 Earnings Beat, Fiscal 2026 Outlook Raised
Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80 from $2.40-$2.65 and projected revenue of $7.5-$7.6 billion. The company also cited progress in its transformation plan, with a goal of approximately $250 million in cost savings and stronger cash generation. Bath & Body Works lifts annual profit forecast
Neutral Sentiment: Analysts remain divided after the results. Morgan Stanley reduced its price target to $20 from $22 while keeping an Equal Weight rating; UBS cut its target to $17 from $19 and maintained a Neutral rating. These targets suggest limited upside or downside from recent trading levels. Analyst price-target changes
Negative Sentiment: Near-term performance remains pressured by weak store traffic and declining overall sales. Second-quarter revenue fell 2.3% year over year, and third-quarter adjusted EPS guidance of $0.07-$0.12 is substantially below the roughly $0.27 analyst consensus, raising concerns about promotional activity and continued softness in physical stores. Bath & Body Works results top expectations

Bath & Body Works Company Profile

(Get Free Report)

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.