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Bath & Body Works (MX:BBWI)
:BBWI
Mexico Market
EarningsQ2 2026 Earnings Report

Bath & Body Works (BBWI) Q2 2026 Earnings Report

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MX:BBWI Q2 2026 EPS Results

Actual EPS$10.54
Consensus EPS$4.13
Beat/MissBeat by +$6.41
One Year Ago EPS$6.29

MX:BBWI Q2 2026 Revenue Results

Actual Revenue$25.73B
Expected Revenue$25.45B
Beat/MissBeat by +$283.08M
YoY Revenue Growth-2.26%

Earnings Announcement Details

QuarterQ2 2026
Date08/26/2026
TimeBefore Open
Conference CallWednesday, August 26, 2026
MX:BBWI 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

MX:BBWI Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 26, 2026|
% Change Since:
|
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
Management narrowed full‑year net sales guidance to down 4.0% to down 2.5% and raised full‑year adjusted EPS to $2.60–$2.80 after Q2 outperformance (Q2 net sales $1.5B, down 2.3%; Q2 adjusted EPS $0.62, which included ≈$80M of tariff refunds that contributed ~530 bps to merchandise margin and would leave EPS ≈$0.31 ex‑refund). They now expect full‑year adjusted gross profit of ~43.3% (including the refund), adjusted SG&A rate ~29.6%, adjusted net non‑operating expense ≈$217M, adjusted tax rate ~26.8% and ~203M weighted average diluted shares; Q3 guidance is net sales down 5% to down 2.5%, gross profit ≈40%, SG&A ≈34.8%, adjusted net non‑operating expense ≈$54M, adjusted tax rate ≈26% and Q3 adjusted EPS $0.07–$0.12. Other updated metrics: capex ~$240M (YTD $98M), free cash flow ~$650M (up from $600M), Fuel for Growth savings ~ $200M (vs. $175M goal), $250M of 2029 notes redeemed, and management is accounting for ~ $30M (≈40 bps) of forward tariff/input cost pressure and ~$35M of incremental Consumer First Formula investments (about 70% of which are weighted to Q3).
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.

MX:BBWI Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 18, 2026
2026 (Q3)
1.95 / -
5.949
2026 (Q2)
4.13 / 10.54
6.28867.57% (+4.25)
2026 (Q1)
4.95 / 5.44
8.328-34.69% (-2.89)
2025 (Q4)
30.61 / 34.84
35.521-1.91% (-0.68)
2025 (Q3)
6.49 / 5.95
8.328-28.57% (-2.38)
2025 (Q2)
6.48 / 6.29
6.2880.00% (0.00)
2025 (Q1)
7.10 / 8.33
6.45828.95% (+1.87)
2024 (Q4)
34.76 / 35.52
35.0111.46% (+0.51)
2024 (Q3)
7.95 / 8.33
8.1582.08% (+0.17)
2024 (Q2)
6.05 / 6.29
6.798-7.50% (-0.51)
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