Bath & Body Works $BBWI reported first-quarter net sales of $1.38 billion on Wednesday, topping analyst expectations and sending its stock up 14% in premarket trading.
The candle and fragrance retailer posted adjusted earnings of 32 cents per share on revenue of $1.38 billion, topping Wall Street forecasts
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Bath & Body Works $BBWI reported first-quarter net sales of $1.38 billion on Wednesday, topping analyst expectations and sending its stock up 14% in premarket trading.
Adjusted earnings came in at 32 cents per share for the period ending May 2, surpassing the 29-cent consensus forecast tracked by Zacks Investment Research, as reported by The Associated Press. Quarterly revenue of $1.38 billion also came in ahead of the $1.36 billion that analysts had anticipated, according to The Associated Press.
On a reported basis, earnings per diluted share were 90 cents, compared with 49 cents in the same period a year ago. Net income rose to $183 million from $105 million. Net sales declined 3% from $1.42 billion in the year-earlier quarter, the company said.
The reported figures included an $88 million pretax gain from settlements of payment card interchange fee litigation, a $62 million tax benefit from the resolution of certain tax matters, and aggregate costs of $8 million tied to business transformation activities, the company said.
Bath & Body Works maintained its full-year 2026 guidance, forecasting net sales to decline between 4.5% and 2.5% from $7.29 billion in fiscal 2025. The company said it expects full-year adjusted earnings per diluted share of $2.40 to $2.65 and free cash flow of approximately $600 million. No share repurchases or tariff refunds are assumed in the outlook, the company said.
CEO Daniel Heaf said in a statement that first-quarter results exceeded guidance but "remain below the standard our brand is capable of delivering." He added that the company expects the impact of its strategic efforts to build through the rest of 2026 and more meaningfully in 2027.
Bath & Body Works also disclosed a leadership change, saying CFO Eva Boratto will step down on June 12. Tom Javitch, who has been with the company for more than 16 years, will serve as interim CFO while a permanent successor is identified. According to Reuters, Boratto has been appointed chief financial officer at drug distributor Cencora.
Even amid a sluggish broader consumer environment, shoppers have continued buying the company's candles and body care offerings, drawn to what analysts have described as an "affordable luxury" effect in home fragrance and self-care, according to Reuters. The company expanded its distribution to Amazon $AMZN earlier this year as part of an effort to reach younger, affluent customers seeking accessible indulgences, according to Reuters.
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