Bath Body Works 2026 Q1 Earnings Strong Performance as Net Income Rises 20.7%

Bath & Body Works(BBWI) reported its fiscal 2026 Q1 earnings on May 28th, 2025. Bath & Body Works exceeded expectations with net income rising 20.7% year-over-year to $105 million, while EPS climbed to $0.49, beating prior guidance. The company maintained its full-year 2025 guidance, anticipating net sales growth between 1% and 3%, and earnings per diluted share ranging from $3.25 to $3.60. Bath & Body Works plans to continue navigating market challenges with its innovative product offerings and strategic adaptations.

Revenue
The total revenue for Bath & Body Works saw a 2.9% increase, reaching $1.42 billion in 2026 Q1, compared to $1.38 billion in the same quarter of the previous year.

Earnings/Net Income
Bath & Body Works's earnings per share (EPS) climbed significantly, up 26.4% to $0.49 in 2026 Q1 from $0.39 in 2025 Q1, reflecting ongoing earnings growth. The company's net income strengthened to $105 million in 2026 Q1, a 20.7% increase from $87 million in 2025 Q1. This performance signals a positive outlook for the company's profitability.

Post-Earnings Price Action Review
Investors adopting the strategy of buying Bath & Body Works shares after a revenue decline on reporting day and holding for 30 days experienced poor returns. This approach resulted in a loss of 20.87%, significantly underperforming against a benchmark return of 39.33%. The strategy incurred a substantial excess loss of 60.21% and a negative CAGR of 7.58%, indicating considerable financial setbacks over the three-year period. A notably high maximum drawdown of 50.06% and a negative Sharpe ratio of -0.16 were reported, emphasizing the strategy's high risk and unfavorable returns.

CEO Commentary
Daniel Heaf, CEO of Bath & Body Works, expressed his enthusiasm for joining the company, highlighting its strong foundation and the impressive dedication of its teams. He noted that the first quarter's performance was driven by positive customer feedback on innovative products and emphasized the company's ability to adapt to the evolving retail landscape. Heaf conveyed confidence in Bath & Body Works' positioning to lead in the home fragrance and beauty categories globally, aiming to accelerate growth while navigating current market challenges.

Guidance
Bath & Body Works maintains its full-year 2025 guidance, projecting net sales growth of 1% to 3% and earnings per diluted share between $3.25 and $3.60. For the second quarter of 2025, the company expects net sales to be flat to an increase of 2%, with EPS anticipated between $0.33 and $0.38. The guidance incorporates the impact of existing tariff rates and plans to allocate approximately $300 million towards share repurchases.

Additional News
Bath & Body Works recently appointed Daniel Heaf as Chief Executive Officer, effective May 16, 2025, following the unanimous decision by its independent directors. This strategic leadership change aims to propel the company forward, leveraging Heaf's vision and expertise in evolving the brand to meet global consumer demands. Additionally, Bath & Body Works has announced a quarterly dividend of $0.20 per share, payable on June 20th, reflecting its commitment to returning value to shareholders. The company has also authorized a stock repurchase program, enabling the buyback of $500 million in shares, signaling confidence in its long-term growth prospects and belief in the undervaluation of its shares.