Bath & Body Works announced on Wednesday that it is raising its adjusted earnings‑per‑share outlook for the full year, reflecting a solid second‑quarter performance that beat analyst expectations. The company posted $1.51 billion in sales for the quarter, just above the $1.50 billion consensus, and reported earnings of 31 cents per share before a one‑time $80 million tariff refund.
Digital growth fuels the rebound
CEO Daniel Heaf said the firm’s turnaround strategy is beginning to bear fruit, especially through its digital platform. Younger shoppers are gravitating toward affordable, small‑ticket items such as scented lotions and room sprays – a phenomenon often called the “lipstick effect,” where discretionary purchases help cushion broader consumer weakness. By expanding distribution to third‑party sites like Amazon and partnering with Ulta Beauty, Bath & Body Works is reaching affluent younger consumers who prefer to shop online.
Challenges remain in brick‑and‑mortar locations
Despite the digital gains, Heaf acknowledged that declining store traffic and a broader slowdown in mall visitation continue to pressure the business. “The progress, because it’s early, has yet to offset the changes in the whole business,” he told Reuters. The company expects third‑quarter net sales to fall between 2.5% and 5%, compared with analysts’ forecast of a 2.9% decline.
Revised profit guidance
Bath & Body Works now projects adjusted earnings of $2.60 to $2.80 per share for the year, up from its prior range of $2.40 to $2.65. Analysts had estimated a profit of 24 cents per share for the quarter, so the company’s performance represents a notable beat.
Industry context
The retailer’s upbeat outlook comes as fellow cosmetics maker Coty warned that its upcoming quarter earnings will fall short of expectations, citing more selective consumer spending and higher oil prices. The contrast highlights how a focused digital push can help a brand navigate a strained consumer environment.
Overall, Bath & Body Works’ results illustrate the growing importance of e‑commerce and strategic partnerships for traditional retailers seeking to offset the challenges of reduced foot traffic in physical stores. The company’s ability to sustain profit growth will likely depend on how effectively it can continue to innovate its product line and expand its online reach while managing the ongoing decline in mall traffic.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
