Bath & Body Works Reports Q2 Fiscal 2026 Results with $1.514 Billion in Net Sales

Bath & Body Works, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a net sales figure of $1,514 million, a decrease of $35 million or 2.3% compared to the same period in 2025. The decline in sales was primarily attributed to a drop in transactions and average dollar sales in North America, which saw a decrease of $57 million. However, international and other sales increased by $22 million, driven by expanded distribution and increased international product sales. The company's operating income for the quarter was $216 million, reflecting a significant increase of $59 million or 37.0% from the previous year, largely due to an improved merchandise margin rate and approximately $80 million in tariff refunds.

In terms of profitability, Bath & Body Works reported a net income of $118 million for the second quarter, up from $64 million in the prior year, resulting in a net income per diluted share of $0.58 compared to $0.30. The increase in net income was supported by a reduction in general, administrative, and store operating expenses, which totaled $476 million, down from $483 million in the second quarter of 2025. The effective tax rate for the quarter was 28.0%, a decrease from 32.3% in the previous year, primarily due to the resolution of certain tax matters.

The company has been actively pursuing its "Consumer First Formula," a multi-year transformation plan aimed at revitalizing the brand and attracting younger consumers. This initiative has led to improvements in product innovation, brand building, and digital engagement. As part of this strategy, Bath & Body Works opened 37 new stores and closed 27, bringing the total number of company-operated stores to 1,937 as of August 1, 2026. The international footprint also expanded, with 596 partner-operated stores, reflecting a commitment to growth in both domestic and international markets.

Looking ahead, Bath & Body Works faces macroeconomic challenges, including global energy market volatility and inflationary pressures that may impact consumer demand. Despite these challenges, the company remains focused on executing its transformation strategy and investing in capabilities to support sustainable growth. The outlook for the remainder of the fiscal year suggests continued emphasis on operational efficiency and strategic investments, with expectations for capital expenditures of approximately $240 million, primarily directed towards high-return real estate and enhancements related to the Consumer First Formula.