Bath & Body Works raised its full-year adjusted earnings forecast on Wednesday after second-quarter results topped guidance, but the company's outlook for the current quarter fell short of analyst expectations, pushing its shares roughly 4% lower in premarket trading. The Columbus, Ohio-based company now expects full-year 2026 adjusted earnings per diluted share of $2.60 to $2.80, up from a prior forecast of $2.40 to $2.65. For the third quarter, Bath & Body Works projected a net sales decline of between 2.5% and 5%, compared with analyst expectations of a 2.9% drop, according to Reuters. Third-quarter adjusted earnings per share are forecast at 7 to 12 cents, against an analyst consensus of 26 cents. Second-quarter net sales reached $1.51 billion, down 2.3% from a year earlier, modestly exceeding the $1.50 billion that analysts had projected, according to Reuters. Adjusted earnings per diluted share were $0.62 for the quarter, boosted by approximately $80 million in tariff refunds; stripping out that one-time item, adjusted earnings per share would have landed at $0.31. Chief executive officer Daniel Heaf pointed to declining store traffic as a persistent drag, while direct online net sales grew 3% in the quarter, the first such increase since 2021, and international and other revenue rose nearly 25%. The company also announced a partnership with Ulta Beauty to sell its products in more than 600 Ulta stores across the U.S. and online, part of a broader push to reach new consumers through expanded retail distribution.
Bath & Body Works Inc.Raised full-year EPS forecast but Q3 guidance missed; shares fell premarket.
Ulta Beauty IncPartnership with Bath & Body Works brings new products to over 600 Ulta stores, boosting assortment.
