Bath & Body Works, Inc. (NYSE:BBWI) on Wednesday reported better-than-expected second-quarter financial results and raised its FY26 EPS guidance.

Adjusted earnings of 62 cents per share comfortably beat the 24-cent consensus estimate. Excluding a one-time tariff refund, adjusted earnings were 31 cents per share. Net sales fell 2.3% year over year to $1.51 billion but topped the $1.50 billion estimate.

Bath & Body Works raised its fiscal 2026 GAAP earnings forecast to between $3.13 and $3.33 per share. Its previous outlook called for $3 to $3.25 per share. Analysts expect $2.86 per share.

The company also raised its adjusted earnings forecast to between $2.60 and $2.80 per share from between $2.40 and $2.65. Wall Street expects $2.65 per share.

Daniel Heaf, chief executive officer of Bath & Body Works, said, “Our second-quarter results exceeded our sales and earnings per share guidance. Underlying business trends remain pressured, but we are seeing further evidence that elements of the Consumer First Formula are beginning to work. We delivered sequential improvement in Body Care, stronger AUR on new product innovation, improved brand discoverability, and continued momentum across our marketplace partnerships.”

Bath & Body Works shares fell 2.9% to trade at $18.36 on Thursday.

These analysts made changes to their price targets on Bath & Body Works following earnings announcement.

  • Morgan Stanley analyst Alex Straton maintained the stock with an Equal-Weight rating and lowered the price target from $22 to $20.
  • Wells Fargo analyst Ike Boruchow maintained the stock with an Overweight rating and lowered the price target from $26 to $24.
  • UBS analyst Jay Sole maintained the stock with a Neutral and lowered the price target from $19 to $17.

Considering buying BBWI stock? Here’s what analysts think:

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