Bath & Body Works drops on mixed earnings report

Bath & Body Works shares fell more than 4% in premarket trading Thursday after the lotion and soap maker posted mixed Q2 results.

Adjusted earnings per share landed at $0.37, below the Street’s estimate of $0.38 but at the high end of the company’s guidance range of $0.33 to $0.38. Revenue reached $1.55 billion, in line with the Street’s expectations for $1.55 billion. Comparable sales rose 1.4%, above analysts’ expectations of 1.1% growth.

Looking ahead, Bath & Body Works bumped up the bottom end of its full-year earnings forecast: it now expects adjusted EPS of $3.35 to $3.60, compared with a prior range of $3.25 to $3.60. The retailer also narrowed its full-year 2025 net sales guidance from 1% to 3% growth to 1.5% to 2.7% growth.

Operating expenses proved to be a drag on the quarter, with general, administrative, and store costs climbing 9%, weighing on profits. On the bright side, the company’s loyalty program drove increased spend, trip frequency, and retention among shoppers.

Shares were up 62% year to date heading into the earnings release.