Bath & Body Works shares pointed down after the company’s quarterly outperformance was largely driven by a tariff refund. Bath & Body Works, Inc. traded at $17.27 ahead of Wednesday’s open, down 1.82% from Tuesday’s $17.58 close, as of 07:12 EDT.
Premarket snapshot: August 26, 2026, 07:12 EDT · Earnings data: quarter ended August 1, 2026
Stores still generated 74.7% of quarterly revenue. Direct and international growth offset about 46% of the $65 million store-sales decline.
| FY26 metric | May 27 | Aug. 26 | Change |
|---|---|---|---|
| Net-sales growth | −4.5% to −2.5% | −4.0% to −2.5% | Low end +0.5 pt |
| Adjusted EPS | $2.40-$2.65 | $2.60-$2.80 | Midpoint +6.9% |
| Adjusted gross margin | ~42.4% | ~43.3% | +90 bps |
| Free cash flow | ~$600M | ~$650M | +$50M |
| Capital spending | ~$270M | ~$240M | −$30M |
| Equity value | ~$3.48B |
| FY26 adjusted P/E | ~6.4× midpoint |
| FY26 free-cash-flow yield | ~18.7% |
| Annual dividend yield | ~4.6% |
| 52-week range | $14.28-$32.32 |
Calculated with $17.27, 201.56 million shares, $2.70 adjusted EPS midpoint and $650 million free-cash-flow guidance. No repurchases are assumed in management's outlook.
| Date | Firm | View | Target |
|---|---|---|---|
| Aug. 19 | Telsey | Hold | $22 |
| Aug. 18 | JPMorgan | Neutral | $24 |
| Aug. 18 | Citi | Buy | $25 |
| Jul. 8 | Goldman Sachs | Sell | $19 |
Consensus: Hold from 18 analysts; average target $25.33. Targets may change after the earnings call.
The report beat the company's guidance even after removing the refund. The valuation question is whether direct and international growth can offset a store channel that still supplies three-quarters of sales. The third-quarter guide keeps that test unresolved.
Sources: Bath & Body Works Q2 2026 earnings release and presentation; Yahoo Finance quotation at 07:12 EDT; StockAnalysis analyst record. Price data are indicative and may be delayed. Calculations are derived from disclosed inputs and rounded.
