COLUMBUS, Ohio, August 12, 2026, 14:45 EDT
Bath & Body Works, Inc. NYSE:BBWI shares fell 3.65% to $18.19 by 2:10 p.m. Eastern. New York trading remained open. The drop came as the retailer unveiled a Disney Tim Burton’s “The Nightmare Before Christmas” collection. The launch now faces a practical investor test: can seasonal buzz restore store traffic? Bath & Body Works announcement; MarketBeat quote
The gap is measurable. First-quarter U.S. and Canadian store sales dropped $48 million, or 4.3%. Direct sales fell another $4 million. International and other revenue rose $6 million, limiting the companywide decline.
| First-quarter sales channel | 2026 | 2025 | Change |
|---|---|---|---|
| U.S. and Canada stores | $1.062 billion | $1.110 billion | -4.3% |
| U.S. and Canada direct | $246 million | $250 million | -1.5% |
| International and other | $70 million | $64 million | +9.0% |
| Total | $1.378 billion | $1.424 billion | -3.2% |
The search signal arrived quickly. “Bath and Body Works Nightmare Before Christmas” became a new U.S. Google trend after the announcement, with more than 2,000 searches indicated at 10:50 a.m. Pacific. That is attention, not revenue. Google Trends U.S. feed
The Walt Disney Company NYSE:DIS collaboration gives BBWI recognizable seasonal characters. Yet licensing alone does not fix weak transactions. The company said lower transactions drove the first-quarter North American decline, partly offset by higher average spending.
| Market snapshot | Value |
|---|---|
| BBWI price at 2:10 p.m. EDT | $18.19 |
| Day change | -3.65% |
| Intraday range | $18.14–$18.80 |
| Market capitalization | $3.67 billion |
| Consensus target | $21.93 |
| Implied target upside | 20.55% |
Chief Executive Daniel Heaf has framed the turnaround in blunt terms. First-quarter results “remain below the standard our brand is capable of delivering,” he said in May. He expects the Consumer First Formula to build through 2026, then contribute more meaningfully in 2027. Bath & Body Works results
Reported profit obscured the operating pressure. An $88 million interchange-fee settlement lifted reported operating income. Adjusted operating income fell 27.8% to $151 million. Adjusted diluted earnings declined to $0.32 from $0.49.
| First-quarter profit measure | 2026 | 2025 | Change |
|---|---|---|---|
| Reported operating income | $231 million | $209 million | +10.5% |
| Adjusted operating income | $151 million | $209 million | -27.8% |
| Reported diluted EPS | $0.90 | $0.49 | +83.7% |
| Adjusted diluted EPS | $0.32 | $0.49 | -34.7% |
Management’s full-year targets leave little room for a soft holiday build. The company still expects sales to fall 2.5% to 4.5%. Adjusted EPS guidance implies a 17.4% to 25.2% decline from fiscal 2025.
| 2026 outlook | Company guidance | Fiscal 2025 base |
|---|---|---|
| Net sales | Down 4.5% to down 2.5% | $7.291 billion |
| Reported diluted EPS | $3.00–$3.25 | $3.11 |
| Adjusted diluted EPS | $2.40–$2.65 | $3.21 |
| Free cash flow | About $600 million | Not stated in guidance table |
Tariffs remain another drag. Bath & Body Works previously estimated about 130 basis points of gross-margin pressure from tariff-related product costs. It also cut product offerings by 10% while expanding on Amazon in the United States.
Analysts remain cautious. MarketBeat’s latest compilation shows 14 holds among 18 ratings. The average target sits above the stock, but the range spans $15 to $26.
| Analyst recommendation | Count | Share of 18 ratings |
|---|---|---|
| Buy | 3 | 16.7% |
| Hold | 14 | 77.8% |
| Sell | 1 | 5.6% |
| Consensus | Hold | |
Recent calls show the split. Wells Fargo & Company NYSE:WFC carried a $26 target and an overweight rating. The Goldman Sachs Group, Inc. NYSE:GS cut BBWI to sell with a $19 target. Jefferies Financial Group Inc. NYSE:JEF most recently kept hold and raised its target to $23.
The next hard checkpoint is earnings, expected on August 27. Investors will watch transactions, store sales and adjusted margin. A strong licensed launch matters only if those measures improve.
Risks: Search interest can fade before conversion data appears. Licensed products may lift traffic but compress margin through fees or promotions. Consumer weakness and tariff costs could also overwhelm a successful collection.
Related articles: Earnings
