Bath & Body Works Q2 2026 sales decline narrows, EPS beats guidance

Bath & Body Works (NYSE: BBWI ) reported second-quarter financial results on Wednesday.

The transcript from the company's second-quarter earnings call has been provided below.

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View the webcast at Summary Bath & Body Works reported a 2.3% decline in net sales for Q2 2026, which was better than the projected decline of 5% to 3%.

Adjusted earnings per share were $0.62, surpassing the guidance of $0.20 to $0.25, aided by $80 million in tariff refunds.

The company is implementing the Consumer First formula, showing progress with sequential improvement in Body Care, digital growth, and expanded distribution.

Initiatives like the Fruit Fusion launch exceeded expectations and highlighted the integration of product innovation with marketing strategies.

Guidance for the year has been adjusted to a net sales decline of 4% to 2.5% and adjusted earnings per share of $2.60 to $2.80, reflecting Q2 performance and strategic investments in marketing and product innovation.

The company is exiting the Home Care category to focus on core areas like Body Care and Home Fragrance, which are performing better.

Expansion into digital and partnerships with platforms like Amazon and Ulta are seen as growth opportunities.

Management emphasizes the long-term goal of returning to sustainable growth by 2027, driven by product innovation, brand engagement, and expansion into new markets and platforms.

The store experience is being revamped to improve customer acquisition and conversion.

Full Transcript Melissa, Operator Good morning.

My name is Melissa, and I will be your conference operator today.

At this time, I'd like to welcome everyone to the Bath & Body Works second quarter 2026 earnings conference call.

Please be advised that today's conference is being recorded.

During the question-and-answer portion, you may ask a question from the phone by pressing star one.

I'll now turn the call over to Luke Long, Vice President of Investor Relations.

Luke, you may begin.

Luke Long, Vice President of Investor Relations Good morning and welcome to the Bath & Body Works second quarter 2026 earnings conference call.

Joining me on the call today are Daniel Heaf, Chief Executive Officer, and Tom Javits, Interim Chief Financial Officer.

In addition to this call and this morning's press release, we have posted a slide presentation on our website.

This summarizes the information in these prepared remarks and provides some related facts and figures regarding our operating performance and guidance.

As a reminder, some of the comments today may include forward-looking statements related to future events and expectations, or factors that could cause the actual results to differ materially from these forward-looking statements.

Please refer to the risk factors in Bath & Body Works' 2025 Form 10-K.

Today's call also contains certain non-GAAP financial measures.

Please refer to this morning's press release and supplemental materials for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measure.

With that, I'll turn the call over to Daniel.

Gina Boswell, Chief Executive Officer Thank you, Luke, and good morning, everyone.

Today I'll review our second quarter performance, provide an update on the progress we're making against our Consumer First formula, and share how we're positioning the business for the second half of the year.

Our second quarter results exceeded our expectations.

Net sales declined 2.3%, ahead of our guidance range of down 5 to down 3, and adjusted earnings per diluted share was $0.62, above our guidance range of $0.20 to $0.25.

Adjusted earnings per diluted share included the benefit from approximately $80 million of tariff refunds received in the quarter.

Excluding this benefit, adjusted earnings per diluted share would have been $0.31, $0.06 above the high end of our guidance range.

While the underlying business remains pressured and our performance is not yet where we want it to be, we are where we expected to be and our teams are moving at pace to execute our strategy.