Bath & Body Works reports Q1 results above guidance, CFO to depart

Bath & Body Works Inc. (NYSE: BBWI) reported first quarter net sales of $1.38 billion, down 3% from the prior year period, while delivering earnings per diluted share of $0.90 compared to $0.49 in the same quarter last year.

The company's adjusted earnings per diluted share reached $0.32 for the quarter, exceeding guidance expectations. The reported results included several one-time items, including an $88 million pre-tax gain from payment card interchange fee litigation settlements and $8 million in costs related to business transformation activities.

Chief Financial Officer Eva Boratto will step down from her role effective June 12 to pursue another professional opportunity. Tom Javitch, who has been with Bath & Body Works for more than 16 years, will serve as interim CFO while the company conducts a search for a permanent replacement.

The company maintained its full-year 2026 guidance, projecting net sales to decline between 4.5% to 2.5% compared to fiscal 2025's $7.29 billion. Full-year earnings per diluted share are expected to range from $3.00 to $3.25, while adjusted earnings per diluted share are forecast between $2.40 and $2.65.

For the second quarter, Bath & Body Works expects net sales to decline between 5% to 3% compared to $1.55 billion in the second quarter of 2025. Second quarter earnings per diluted share are projected between $0.20 and $0.25.

The company ended the quarter with $820 million in cash and cash equivalents, compared to $636 million in the prior year period. Bath & Body Works expects to generate approximately $600 million in free cash flow for fiscal 2026.

Store count remained relatively stable with 1,923 company-operated locations at quarter-end, including 1,810 in the United States and 113 in Canada. The company opened 13 new stores and closed 17 during the quarter.

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