10-Q · May 27, 2026
Bath & Body Works, Inc. reported Q1 2026 results featuring higher than anticipated earnings and revenues, outpacing consensus estimates despite a year-over-year revenue decline. Operating income improved by 10.4% due to…
Earnings analysis · 10-Q
BBWI earnings analysis
Filed August 26, 2026 · Our reading of the company's report
The latest report
Bath & Body Works delivered a strong Q2 beat, with $1.514 billion of revenue and $0.62 reported EPS versus consensus estimates of $1.4897 billion and $0.21, respectively. Management raised FY2026 reported EPS guidance…
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Bath & Body Works delivered a strong Q2 beat, with $1.514 billion of revenue and $0.62 reported EPS versus consensus estimates of $1.4897 billion and $0.21, respectively. Management raised FY2026 reported EPS guidance to $3.13-$3.33 and expects approximately $650 million of free cash flow, but core store sales fell 5.4% and Q3 EPS guidance is only $0.05-$0.10. The overall setup is mixed: earnings and capital structure improved, while sales trends and the near-term outlook remain pressured.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.62
What stood out
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Revenue exceeded consensus
Q2 revenue was $1.514 billion, $24.3 million above the $1.4897 billion consensus estimate, a 1.63% beat.
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EPS materially beat estimates
Reported Q2 EPS was $0.62 versus the $0.21 consensus estimate, a $0.41 beat and 195.2% upside to consensus.
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Full-year EPS outlook raised
FY2026 reported EPS guidance was raised to $3.13-$3.33 from $3.11 in fiscal 2025, while adjusted EPS guidance is $2.60-$2.80.
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Positive full-year cash outlook
Management expects approximately $650 million of FY2026 free cash flow, although current-quarter free cash flow is not disclosed in the provided 10-Q extract.
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Debt balance decreased
Debt principal declined to $3.632 billion as of August 1, 2026 from $3.916 billion at January 31, 2026, a $284 million reduction.
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Limited share repurchases
The company repurchased 95 thousand shares during Q2 2026, while $117.341 million remained available under the repurchase program at quarter-end.
What to watch
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Core store sales remain pressured
Core store sales declined 5.4%, indicating continued pressure in the company's principal store channel despite the Q2 earnings beat.
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Weak third-quarter outlook
Q3 reported EPS guidance of $0.05-$0.10 is substantially below Q2 reported EPS of $0.62, signaling a sharp near-term earnings slowdown.
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Sales outlook remains negative
FY2026 net sales guidance implies a decline of 4.0% to 2.5% versus fiscal 2025 sales of $7.291 billion. The filing also states that the risk factors in the 2025 10-K continue to apply, with no material new risk-factor changes identified in the provided text.
Management's outlook
FY2026 reported EPS guidance was raised to $3.13-$3.33 from $3.11 in fiscal 2025. Adjusted EPS guidance is $2.60-$2.80, Q3 reported EPS guidance is $0.05-$0.10, and FY2026 free cash flow is expected to be approximately $650 million. Net sales guidance was narrowed to a decline of 4.0% to 2.5% versus fiscal 2025 sales of $7,291 million.
Earlier filings 4
10-K · March 12, 2026
The 10-K centers Bath & Body Works’ multi-year “Consumer First Formula” transformation (launched Q3 2025) to drive product, brand, marketplace and operating improvements while acknowledging short-term investment and…
10-Q · November 20, 2025
Bath & Body Works reported third-quarter net sales of $1,594 million, down from $1,610 million a year ago, with gross profit of $658 million and diluted EPS of $0.37 (down from $0.49). Gross and operating margins…
10-K · March 14, 2025
Bath & Body Works positions itself as a global leader in personal care and home fragrance focused on accelerating top-line growth via product innovation, marketing, digital personalization and international expansion.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.