Bath & Body Works Narrows Sales Guidance Amid Transformation

Bath & Body Works Inc. narrowed its full-year sales guidance to a projected decline between 4% and 2.5%, an improvement over its previous forecast of 4.5% to 2.5%. The company reported second-quarter revenue of $1.51 billion, which slightly exceeded consensus expectations.

To combat declining mall foot traffic and consumer favor, the retailer is implementing a transformation plan to diversify its sales channels. This strategy includes expanding partnerships with Amazon.com and Ulta Beauty, alongside growing its e-commerce presence. Non-store sales in the United States and Canada grew 3% to $275 million. The company also introduced the Reserve Collection, a new line of higher-priced home fragrances and decor.

CEO Daniel Heaf stated that the company is in the early stages of this transformation. He indicated that more significant impacts from these initiatives are expected during the second half of the year and into early 2027.