Bath & Body Works Q2 net sales fall amid weak underlying demand

Bath & Body Works reported Q2 2027 sales beat due to digital growth and expanded distribution. The company is shifting focus to enduring franchises and exiting the Home Care category. Digital sales improved, and management reinvested $35M in marketing. Guidance was narrowed, assuming macro pressures persist. Q2 results included an $80M tariff refund benefit. Management discussed sustainability of digital growth, store traffic strategies, and partnerships with Amazon and Ulta.

Bath & Body Works reported Q2 sales of $1.1 billion, down 5.4% YoY, with direct-channel sales up 3% and international revenue up 24.9%. The company's digital business grew, and new product launches exceeded expectations. Bath & Body Works plans to exit its home-care category and expand distribution with Amazon and Ulta. It narrowed its full-year sales outlook to a decline of 2.5% to 4% and raised adjusted EPS guidance to $2.60 to $2.80.

Bath & Body Works (BBWI) reported Q2 earnings of $0.62 per share, beating estimates of $0.24, with revenue at $1.5B, down 2.3% YoY. The company raised full-year EPS guidance to $2.60-$2.80 but issued a cautious Q3 outlook, expecting sales to decline 2.5%-5% and EPS to be $0.07-$0.12, below estimates of $0.26. CEO Daniel Heaf noted early progress in their Consumer First strategy.

Bath & Body Works (BBWI) reported Q2 2027 revenue of $1.5B, down 2.3% YoY. Adjusted EPS was $0.62, beating guidance. Tariff refunds contributed $80M. Full-year sales guidance narrowed to -4% to -2.5%, while adjusted EPS guidance raised to $2.60-$2.80. Digital sales grew 3%, first increase since 2021. International sales rose 24.9%. Management warned of future cost pressures and noted store traffic challenges.

Bath & Body Works (BBWI) reported Q2 metrics, including 1,937 total stores (vs. 1,928 estimate) and $1.13B U.S./Canada sales (vs. $1.15B estimate). International sales grew 25.6% YoY to $108M, beating estimates.

U.S. stocks closed lower on Wednesday due to elevated inflation data and caution ahead of the Fed's Jackson Hole symposium. The Dow fell 0.21%, S&P 500 dropped 0.02%, and Nasdaq declined 0.08%. Meta rose 1.07% after a $16.7B lawsuit settlement, while Abercrombie & Fitch surged 35.67% on revised guidance. Investors await Nvidia's earnings for AI sector insights.