US-based Bath & Body Works reported lower second quarter (Q2) net sales but higher operating income and net income, as the retailer continued to work through weak underlying demand.
The personal care and home fragrance retailer posted net sales of $1.51bn for the quarter ended 1 August, down 2.3% from a year earlier
Operating income rose to $216m from $157m while net income increased to $118m from $64m. Earnings per diluted share rose to $0.58 from $0.30 while adjusted earnings per share (EPS) increased to $0.62 from $0.37. Bath & Body Works CEO Daniel Heaf said the quarter came in ahead of the company’s sales and EPS guidance, but cautioned that “underlying business trends remain pressured”.
He commented: “We are seeing further evidence that elements of the Consumer First Formula are beginning to work.” He pointed to sequential improvement in body care, stronger average unit retail on new product innovation, improved brand discoverability and continued momentum in marketplace partnerships. A key marker for the quarter was growth in direct sales, which rose 3% to $275m in the US and Canada, the first increase since 2021, supported by digital investments made over the past year. Store sales in the US and Canada fell 5.4% to $1.13bn while international and other revenue rose 24.9% to $108m.