Bath & Body Works

Q2 FY2027 EarningsQ2 FY26 results beat consensus on both top and bottom lines, with revenue of $1,514M vs. $1,497M expected and Adjusted EPS of $0.62 significantly exceeding the $0.24 consensus. The bottom-line beat was primarily driven by a $80M non-recurring tariff refund (~$0.31 per share impact). While core U.S. store sales remained soft (down 5.4%), Direct sales returned to growth (+3.0%) for the first time since 2021. Full-year FY26 Adjusted EPS guidance was narrowed and raised at the midpoint to $2.70, largely in line with underlying performance excluding one-time items.