Bath & Body Works, Inc. reported second-quarter 2026 net sales of $1.514 billion, down 2.3% from $1.549 billion a year earlier, while GAAP earnings per diluted share rose to $0.58 from $0.30. Adjusted earnings per diluted share reached $0.62, beating the $0.24 consensus estimate and including approximately $80 million of tariff refunds; excluding that benefit, adjusted earnings were $0.31. Direct U.S. and Canada sales increased 3.0% to $275 million, marking the company’s first direct-net-sales growth since 2021, while store sales declined 5.4% to $1.131 billion and international and other sales rose 24.9% to $108 million. Bath & Body Works raised its full-year 2026 GAAP earnings guidance to $3.13-$3.33 per share and adjusted earnings guidance to $2.60-$2.80, narrowed its sales outlook to $7.00 billion-$7.11 billion and forecast approximately $650 million in free cash flow. Management said store traffic remained under pressure and that Body Care was still performing below its potential. It plans to invest an additional $35 million, primarily in marketing, in its Consumer First Formula strategy, avoid increasing promotions in the second half and exit the Home Care category while focusing on core products.