BBWI Bath & Body Works, Inc.
Price Chart
Executive Summary
Bath & Body Works reported Q1 2026 adjusted EPS of $0.32, beating the $0.24 consensus by 33%, but net sales of $1.378B declined 3% YoY and missed the $1.49B estimate. Full-year 2026 guidance was reaffirmed (sales down 2.5%-4.5%, adjusted EPS $2.40-$2.65), while CFO Eva Boratto unexpectedly resigned effective June 12, with an interim CFO appointed. The combination of a top-line miss, reaffirmed weak guidance, and a sudden CFO departure creates a bearish outlook despite the headline EPS beat.
Key Financial Metrics
Actionable Insight
The revenue miss and reaffirmed weak guidance confirm the structural sales decline is not reversing. The sudden CFO resignation adds leadership uncertainty. Monitor Q2 results for further deterioration; the stock may re-test recent lows. The adjusted EPS beat is noise — focus on the declining top line and guidance.
Key Facts
- Q1 2026 net sales of $1.378B declined 3% YoY from $1.424B, missing the $1.49B consensus
- Adjusted EPS of $0.32 beat the $0.24 consensus by 33%, but GAAP EPS of $0.90 included $88M interchange fee settlement gain and $62M tax benefit
- Full-year 2026 guidance reaffirmed: sales down 2.5%-4.5%, GAAP EPS $3.00-$3.25, adjusted EPS $2.40-$2.65 (down from $3.21 adjusted in 2025)
- Q2 2026 guidance calls for sales down 3%-5% YoY and GAAP EPS of $0.20-$0.25, below the $0.30 prior-year GAAP EPS
- CFO Eva Boratto resigned effective June 12 to pursue another opportunity; interim CFO Tom Javitch appointed
- No share repurchases assumed in 2026 outlook; free cash flow guidance of ~$600M maintained
- U.S. and Canada store sales declined 4.3% YoY; direct channel sales fell 1.5%; international grew 9%
- Operating cash flow was $244M in Q1 2026 vs $188M in Q1 2025, but capital expenditures rose to $49M from $37M
Financial Impact
Revenue miss of ~$112M vs consensus and reaffirmed guidance for a 2.5%-4.5% full-year sales decline signal ongoing top-line pressure. The adjusted EPS beat is largely driven by one-time items (interchange settlement, tax benefit) and is not sustainable.
Risk Factors
- Continued sales decline in core U.S. and Canada stores and direct channels
- CFO transition creates execution risk during a transformation period
- No share repurchases assumed in 2026 removes a support mechanism for EPS
- Q2 guidance implies GAAP EPS of $0.20-$0.25, well below the $0.30 reported in Q2 2025
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000701985-26-000012 |
| Document: bbwi-20260520.htm | 0000701985-26-000012 |
| Document: 0000701985-26-000012-index-headers.html | 0000701985-26-000012 |
| Document: 0000701985-26-000012-index.html | 0000701985-26-000012 |
| Document: 0000701985-26-000012.txt | 0000701985-26-000012 |
| 8-K Data (Synthetic) | 0000701985-26-000012 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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Jun 11, 2026
1d ago
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Institutional Cluster
| $18.11 awaiting T+5 | awaiting T+5 | — | $19.40 (+7.15%) |
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May 27, 2026
16d ago
|
8-K
| $19.35 $18.00 | ▲ +6.98% | ▲ +7.44% | $19.40 (−0.24%) |
|
May 27, 2026
16d ago
|
Press Release
| $19.35 $18.00 | ▼ −6.98% | ▼ −7.44% | $19.40 (+0.24%) |
|
May 13, 2026
4w ago
|
Press Release
| $18.71 $16.85 | ▼ −9.94% | ▼ −9.80% | $19.40 (+3.67%) |
|
Mar 4, 2026
14w ago
|
Press Release
| $22.99 $19.98 | ▲ +13.09% | ▲ +11.76% | $19.40 (+15.63%) |
US Market Status
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