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Bath & Body Works Raises 2026 Guidance on Direct Sales and Digital Improvements

Aug 26, 2026, 6:59 AM EDT3 sourcesAI-analyzed

Why it may matterVerify against the original reporting

Guidance raise and evidence of Direct net sales growth imply improved profitability trajectory, potential multiple expansion, and stronger cash generation in 2026, despite near-term macro headwinds.

AI summary

What happened, with direct paths to the underlying reporting

BBWI reported Q2 2026 results ahead of guidance, with net sales of $1.514B (-2.3%) and diluted EPS of $0.58 (adjusted $0.62), aided by roughly $80M in tariff refunds. Direct net sales grew as the Consumer First Formula advances, supported by digital enhancements and marketplace partnerships. The company raised 2026 guidance to $3.13-$3.33 per share (GAAP) and $2.60-$2.80 (adjusted), signaling a improving trajectory into 2027 despite ongoing revenue headwinds.

Q2 net sales $1,514M, down 2.3%; diluted EPS $0.58; adjusted $0.62.
Direct net sales grew; digital enhancements and marketplace partnerships lifting mix.
2026 guidance raised: EPS $3.13-$3.33; adjusted $2.60-$2.80; sales decline narrowed to 4%–2.5%.
Tariff refunds ~ $80M boosted Q2; ex-refund, adjusted EPS would be $0.31.
First direct net sales growth since 2021; transformation progress noted.

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