EarningsQ2 2026 Earnings Report
CH:LTD0 Q2 2026 EPS Results
Actual EPSCHF0.50
Consensus EPSCHF0.20
Beat/MissBeat by +CHF0.31
One Year Ago EPSCHF0.30
CH:LTD0 Q2 2026 Revenue Results
Actual RevenueCHF1.23B
Expected RevenueCHF1.22B
Beat/MissBeat by +CHF13.55M
YoY Revenue Growth-2.26%
Earnings Announcement Details
QuarterQ2 2026
Date08/26/2026
TimeBefore Open
Conference CallWednesday, August 26, 2026
CH:LTD0 Upcoming Earnings
Bath & Body Works's next earnings date is estimated for November 18, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
CH:LTD0 Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call showcased several meaningful tactical wins—Q2 results beat guidance, adjusted EPS outperformed and full-year EPS guidance was raised; digital returned to growth, Fruit Fusion demonstrated the new go-to-market playbook, and expanded distribution (Amazon, Ulta) scaled quickly. However, many of the upside results were aided by a one-time tariff refund and the underlying business remains pressured: store sales are down, body care is still underperforming, and full-year and Q3 revenue are still guided to declines. Management emphasized multiyear transformation and prudent investment, but near-term headwinds (tariffs, store traffic, margin deleverage) temper the optimism.Company Guidance
Q2 Net Sales Ahead of Guidance
Net sales of $1.5 billion in Q2 declined 2.3% year-over-year but beat guidance (previously down 5% to down 3%), providing evidence of sequential improvement versus Q1.
Adjusted EPS Outperformance and Raised FY Guidance
Adjusted earnings per diluted share of $0.62 in Q2 exceeded guidance of $0.20–$0.25; company raised full-year adjusted EPS guidance to $2.60–$2.80 and narrowed net sales guide to down 4% to down 2.5%.
Tariff Refund Benefit Improved Near-Term Results
Approximately $80 million of tariff refunds were recognized in Q2, contributing roughly 530 basis points to merchandise margin and materially boosting reported gross profit rate to 45.7% (versus 40.4% excluding the refund).
Digital Returned to Growth
Owned digital net sales returned to growth in the quarter (direct channel net sales $275 million, +3% YoY) and digital improved ~4 percentage points sequentially from Q1, with better conversion, discovery and personalization cited as drivers.
Expanded Distribution Momentum
Amazon net sales more than tripled versus Q1 and Bath & Body Works became one of the largest candle brands on the platform; launched with Ulta in ~600 stores with encouraging early response—expanded distribution (International & Other) net sales $108 million, +24.9% YoY.
Successful New Product Franchise Launch
Fruit Fusion launch exceeded sales expectations, achieved higher AUR than core fragrance body care, sold out several forms, generated ~615 million campaign impressions and added over 50,000 social followers—positioned as an enduring franchise with follow-on launches planned.
Operational and Cashflow Improvements
Fuel for Growth savings tracking ~$200 million (exceeding $175 million goal by ~$25 million); inventory down 10% YoY; lowered capex guidance to ~$240 million; free cash flow guidance raised to ~$650 million (from $600 million); returned $40 million via dividends and redeemed $250 million of 2029 notes.
Store Fleet and Merchandising Initiatives
Completed a full-store merchandising reset across the fleet with positive initial feedback; opened 24 stores, closed 10, ended quarter with 1,937 North American company-owned stores (~60% off-mall) and 596 international locations.
International Growth Despite Headwinds
International retail sales increased ~9% YoY despite regional conflicts, early performance in Brazil was positive, and international net sales were up low double digits contributing to overall expanded distribution growth.
CH:LTD0 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed