Bath & Body Works’ H1 2026 sales fell 2.7% to $2.892bn. Stores in the US and Canada fell 4.9% to $2.194bn. Online sales grew 0.8% to $521m, while international sales grew 18.1% to $177m. The US and Canada still made up 94% of sales and fell 3.9% when combining store and online sales.
Reported operating income rose to $447m from $367m and net income to $301m from $169m. But H1 includes an $88m Q1 interchange-fee settlement gain and a $62m tax benefit. On an adjusted basis, operating income was $376m versus $382m, adjusted net income was $190m versus $183m, and adjusted EPS was $0.94 versus $0.86.
Q2 sales fell 2.3%, an improvement on the first quarter. Stores in the US and Canada fell 5.4%, but online sales grew 3.0%, its first growth since 2021. International business rose 24.9%. Reported operating income was $216m versus $157m and adjusted EPS was $0.62 versus $0.37. Q2 adjusted EPS included about $80m of tariff refunds. Without that benefit, it would have been $0.31.
Management says underlying trends are still pressured, but Body Care improved sequentially. It also points to stronger AUR on new products, better brand discoverability and growth across marketplace partnerships. There is progress, but still no real turnaround.
Bath & Body Works narrowed full-year sales guidance to a decline of 4% to 2.5% against $7.291bn in FY25. Reported EPS is expected at $3.13-$3.33 and adjusted EPS at $2.60-$2.80, below last year’s $3.21. Free cash flow is expected at about $650m. Q3 sales are expected down 5% to 2.5%, with adjusted EPS of $0.07-$0.12 as the core US business still needs to recover.
