BBWI Stock Jumps 7.5% on Q2 Earnings Beat, Fiscal 2026 Outlook Raised

Bath & Body Works (BBWI) surged 7.5% after the retailer delivered a second-quarter earnings beat and upgraded its fiscal 2026 outlook. The company posted adjusted EPS of 62 cents, more than doubling the 24-cent consensus estimate, while net sales reached $1,514 million.

BBWI returned to direct sales growth for the first time since 2021, driven by improved digital conversion rates and expanded distribution channels. Management raised full-year adjusted EPS guidance to a range of $2.60 to $2.80 and lifted free cash flow expectations to $650 million.

The quarterly results mark a turnaround for the specialty retailer, which had struggled with declining direct sales for nearly two years. The digital performance improvement signals traction in the company's e-commerce strategy, while distribution expansion suggests successful store footprint optimization.