Bath & Body Works 2.3% sales decline in Q2 prompts lowered full-year guidance

By Alessandro Carrara | Published: 27-Aug-2026

The US beauty and personal care brand and retailer reported net sales of $1.5bn for Q2 2026, and anticipates lower sales for the third quarter of trading as well

Bath & Body Works has decreased its full-year guidance for 2026 after recording a 2.3% slump in net sales during the second quarter of trading.

The US beauty and personal care brand and retailer reported net sales of US$1.51bn for the second quarter ended 1 August 2026, compared with $1.54bn in the same period last year.

Direct net sales were supported by ongoing enhancements to the digital offering over the past year, however.

As a result of the overall decline, Bath & Body Works is narrowing its full-year 2026 guidance, expecting net sales to decline between 4% and 2.5%, compared with $7.2bn in 2025.

Bath & Body Works remains upbeat as the financial results largely beat analyst estimates for the second quarter, with the company’s turnaround strategy beginning to show shoots.

This led Bath & Body Works to raise its full-year 2026 earnings per diluted share guidance between $3.13 and $3.33, compared with $3.11 in 2025.

Daniel Heaf, CEO of Bath & Body Works, said: “Our second quarter results exceeded our sales and earnings per share guidance.

“Underlying business trends remain pressured, but we are seeing further evidence that elements of the [company’s] ‘Consumer First Formula’ are beginning to work.

“We delivered sequential improvement in body care, stronger AUR (Average Unit Retail) on new product innovation, improved brand discoverability, and continued momentum across our marketplace partnerships.

“Additionally, this quarter marks the first direct net sales growth since 2021.

“The investments we have made over the past year are strengthening the customer proposition through a more seamless and engaging shopping experience, and these improvements are resonating with consumers.”

Although confidence remains high, Bath & Body Works is forecasting a rocky third quarter of trading for 2026 and expects net sales to decline between 5% and 2.5%.

Heaf continued: “These proof points strengthen our confidence in the strategy, but we remain in the early stages of the transformation.

“Our priority remains improving the trajectory of the business, while continuing to build the product, brand and marketplace capabilities that we believe will position Bath & Body Works for sustainable, durable growth in 2027.”