BATH & BODY WORKS INC (NYSE:BBWI) Posts Mixed Q2 Earnings, Shares Drop Over 6.6% in Pre-Market

BATH & BODY WORKS INC (NYSE:BBWI) reported second-quarter earnings for fiscal year 2026, delivering a mixed financial performance that has drawn a cautious response from investors in pre-market trading. The company posted revenue of $1.55 billion, which fell short of the analyst consensus estimate of $1.58 billion. Similarly, earnings per share came in at $0.37, slightly below the estimated $0.38. These results reflect modest top-line growth of 1.5% year-over-year but indicate some pressure on profitability relative to expectations.

In its official press release, management highlighted that both revenue and adjusted earnings per share landed at the high end of the company’s own guidance range. CEO Daniel Heaf characterized the quarter as “solid” and expressed confidence in the full-year outlook, noting that the low end of the adjusted EPS guidance range has been raised. This suggests internal optimism despite the slight misses against Wall Street forecasts. The company also provided next-quarter revenue guidance of approximately $1.64 billion, which aligns closely with analyst projections of $1.67 billion.

Market reaction has been notably negative in pre-market activity, with shares declining over 6.6%. This drop appears to reflect investor disappointment with the earnings and revenue shortfalls, as well as concerns about the company’s ability to exceed expectations in a competitive retail environment. Over recent weeks, the stock had been relatively stable, posting modest gains, but the earnings release has triggered a reassessment of near-term performance.

Key elements from the earnings release include:

• Net sales increased 1.5% year-over-year to $1.55 billion.
• GAAP earnings per diluted share were reported at $0.30, though adjusted EPS—which management emphasized—was likely higher, consistent with their positive commentary.
• The company updated its full-year adjusted EPS guidance, reflecting management’s confidence based on first-half results.

Looking ahead, Bath & Body Works faces the challenge of sustaining growth in both its brick-and-mortar and e-commerce segments, particularly as consumer spending patterns remain unpredictable. The guidance for the upcoming quarter suggests stability, but the market will be watching for improved execution against estimates in future reporting periods.

For further details on historical earnings, future estimates, and analyst projections, readers can review additional information here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.