Bath & Body Works Inc (NYSE:BBWI) jumped 12.8% in Wednesday morning trading after the retailer posted first-quarter results above both its own guidance and Wall Street estimates, while reaffirming its full-year outlook, easing concerns about the trajectory of the business.
Adjusted EPS of $0.32 beat consensus of $0.29 and topped the guided range of $0.24 to $0.30
Net sales of $1.38 billion, down 3.2% year-over-year, came in ahead of the $1.36 billion consensus and the company’s guided range of down 4% to 6%. Adjusted operating income of $151 million significantly topped estimates of $141 million. The company reaffirmed full-year 2026 guidance for net sales down 4.5% to 2.5%, adjusted EPS of $2.40 to $2.65, and free cash flow of approximately $600 million.
For Q2, it guided net sales down 5% to 3% and adjusted EPS of $0.20 to $0.25, with the midpoint coming in ahead of the $0.21 consensus. CEO Daniel Heaf said the results exceeded guidance but remained below the standard the brand is capable of delivering. “That reality reinforces the urgency with which we are executing the Consumer First Formula,” he said. “Our efforts to strengthen our hero categories, modernize the brand, and expand our reach are beginning to resonate with consumers.” By segment, US and Canada store sales fell 4% year-over-year, international rose 9%, and e-commerce declined 2%. Jefferies called the quarter a beat on both sales and earnings and said it would be listening on the call for updates on strategic initiatives, the $250 million cost savings plan, and early reads on the company’s Amazon launch.