Bath & Body Works gains after Q1 results beat guidance, supported by improved profitability and stable outlook.
Stock Earnings Results
May 27, 2026
Table of Contents
May 27, 2026
Bath & Body Works, Inc. (NYSE: BBWI) rose 17.23% after reporting first-quarter 2026 results above guidance, with adjusted earnings ahead of expectations, stronger operating income, and reaffirmed full-year guidance.
Bath & Body Works is a specialty retailer focused on personal care, home fragrance, body care, soaps, sanitizers, candles, and fragrance products sold through stores and digital channels.
The company reported adjusted EPS of $0.32, above estimates of $0.29, representing a 10.3% earnings surprise. Revenue came in at $1.38 billion, above estimates of $1.36 billion, though revenue declined 3.2%.
Bath & Body Works reported first-quarter net sales of $1.38 billion, down from $1.42 billion in the prior-year quarter.
The decline shows the business is still under pressure, but sales came in above guidance and above analyst expectations.
Adjusted earnings per diluted share were $0.32.
Reported earnings per diluted share were $0.90, compared with $0.49 last year. Reported results included several one-time items, including an $88 million pre-tax gain related to payment card interchange fee litigation settlements and a $62 million tax benefit.
Operating income was $231 million, compared with $209 million in the prior-year quarter.
Adjusted operating income was $151 million, while adjusted net income was $65 million.
Bath & Body Works maintained its full-year 2026 outlook.
The company still expects net sales to decline 4.5% to 2.5% compared with fiscal 2025. It also maintained full-year adjusted EPS guidance of $2.40 to $2.65 and expects free cash flow of about $600 million.
For the second quarter, Bath & Body Works expects net sales to decline 5% to 3% from the prior-year period.
The company expects second-quarter EPS of $0.20 to $0.25, compared with EPS of $0.30 and adjusted EPS of $0.37 in the prior-year quarter.
Chief Financial Officer Eva Boratto will step down effective June 12 to pursue another opportunity.
Tom Javitch, a long-time finance executive at Bath & Body Works and L Brands, was appointed interim CFO while the company searches for a permanent replacement.
Investors are likely to watch whether Bath & Body Works can turn early turnaround progress into stronger sales growth.
The key areas are:
Bath & Body Works still faces declining sales, but the market reacted positively because Q1 results exceeded guidance and management reaffirmed the full-year outlook.
The stock move suggests investors were positioned for a weaker report. The next test is whether the company’s Consumer First Formula can move the business from better-than-feared results to sustainable growth.
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