Bath & Body Works Reports Q2 2025 Profit Meets Estimates, Raises Full-Year Earnings Outlook

Bath & Body Works (BBWI.US) reported solid results for the second quarter of 2025, with net sales reaching $1.549 billion USD, marking a 1.5% increase compared to the prior year. Adjusted earnings per diluted share stood at $0.37 USD, which was at the high end of the company's guidance range and met analyst estimates of $0.37 USD for the quarter. This performance reflects the company's ability to maintain stable profitability despite varying market conditions for the period ending August 2, 2025.

Operational Performance

The company's net sales growth was primarily driven by its U.S. and Canada Stores segment, which saw a 4.9% increase in sales to $1.196 billion USD for the quarter. This growth in physical stores helped offset a 10.1% decrease in Direct – U.S. and Canada sales, which totaled $267 million USD. International sales also experienced a slight decline of 2.9% to $86 million USD.

Adjusted operating income for the quarter was $172 million USD, compared to $183 million USD in the prior year. Adjusted net income was $78 million USD, a decrease from $83 million USD in the same period last year. Despite these modest declines in adjusted profitability, the results align with the company’s guidance and highlight ongoing efforts to manage costs and drive sales.

Management Outlook

Building on its strong first-half results, Bath & Body Works is raising the low end of its full-year 2025 adjusted earnings per diluted share guidance from $3.25-$3.60 USD to $3.35-$3.60 USD. This updated guidance includes the anticipated impact of current tariff rates and an increased share repurchase plan of $400 million USD, up from the previous expectation of $300 million USD.

For the third quarter of 2025, the company expects net sales to increase by 1% to 3% compared to the prior year, with earnings per diluted share projected to be between $0.37 USD and $0.45 USD. The company's management emphasized progress on strategic initiatives, including elevating the digital experience, amplifying product efficacy, and expanding distribution, which are expected to support durable long-term growth.