Bath & Body Works, Inc. (BBWI) reported its first-quarter fiscal 2026 results on October 24, 2023, showing adjusted earnings of 32 cents per share, exceeding the Zacks Consensus Estimate of 29 cents, but down 34.7% year-over-year. Net sales decreased 3.2% to $1,378 million, surpassing the estimate of $1,370 million. The company has 1,923 stores globally, closing 17 and opening 13 in North America during the quarter.
Despite the challenging retail environment, management saw potential in their Consumer First Formula strategy aimed at long-term growth. The adjusted gross profit dropped 9.1% to $588 million, with the adjusted operating income falling 27.6% year-over-year to $151 million. For Q2, Bath & Body Works anticipates net sales to decline by 5-3% from last year’s $1.55 billion, expecting earnings per share between 20-25 cents compared to 30 cents reported last year.
BBWI affirmed its fiscal 2026 outlook, projecting adjusted earnings per share of $2.40-$2.65, while total net sales are expected to decline 4.5-2.5% compared to fiscal 2025. The company ended Q1 with cash and cash equivalents of $820 million and long-term debt of $3.61 billion. Management emphasized ongoing investments in innovation and product transformation, positioning the firm for sustainable growth amidst macroeconomic uncertainties.
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