AI-extracted from the 10-Q filed 2026-08-26 — Q2 FY2026 (quarter ended August 1, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Bath & Body Works Q2 revenue declined 2.3% to $1.514B, but operating income surged 37% to $216M on gross margin expansion from $80M in IEEPA tariff refunds and lower debt service.
Biggest Revenue Drivers
Stores - U.S. and Canada$1,131M-5.4% YoY
Decrease driven by lower transactions and average dollar sales.
Direct - U.S. and Canada$275M+3.0% YoY
Increase primarily driven by higher fulfilled orders, partially offset by lower average order size.
Biggest Revenue Drivers
Total revenue: $1,514M-2.3% YoY
Stores - U.S. and Canada$1,131M-5.4% YoY
Decrease driven by lower transactions and average dollar sales.
Direct - U.S. and Canada$275M+3.0% YoY
Increase primarily driven by higher fulfilled orders, partially offset by lower average order size.
International and Other$108M+24.9% YoY
Growth from expanded domestic wholesale distribution (Ulta, Amazon) and increased international product sales.
Largest Expense Items
Costs of Goods Sold, Buying and Occupancy$822M-9.6% YoY
Decrease due to approximately $80M IEEPA tariff refunds recognized as cost reduction, despite merchandise margin deleverage on lower sales.
General, Administrative and Store Operating Expenses$476M-1.4% YoY
Decrease primarily from $15M in prior-year leadership transition costs, offset by incremental marketing spend and business transformation costs in 2026.
Interest Expense$63M-7.4% YoY
Decrease driven by lower average daily borrowings following early extinguishment of 2027 Notes in Q1 2026.
Watch Items from the Filing
Store sales declined 5.4% YoY; transactions and average dollar sales both lower, suggesting consumer headwinds. Management attributes decline to macro uncertainty, but discretionary spending pressure evident.
Operating income benefited from one-time $80M IEEPA tariff refunds and $88M interchange settlement (year-to-date); adjusted operating income was $225M vs. $172M prior year, still +31% but less dramatic.
Company raised FY2026 capital expenditure guidance to ~$240M (from prior ~$200M estimate), focused on real estate and Consumer First Formula, signaling confidence but requiring cash deployment.
Long-term debt reduced from $3.892B to $3.614B year-to-date via $289M repurchase of 2027 Notes; subsequently redeemed $250M of 2029 Notes post-quarter-end, further deleveraging.
Company maintained negative equity position of $1.054B deficit as of August 1, 2026, though improving from $1.279B deficit at fiscal year-end 2025, reflecting capital allocation toward debt reduction rather than buybacks.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Lee Danielle M.DirectorGrant or award · Jun 11, 2026
Symancyk James KevinDirectorGrant or award · Jun 11, 2026
Congress trading in BBWI
1 transaction in BBWI reported by 1 member of Congress under the STOCK Act, most recent trade Nov 30, 2022. Reported transactions, not recommendations.
About Bath & Body Works, Inc. (BBWI): stock profile, AI score and financials
Bath & Body Works, Inc. (BBWI) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores BBWI at 59.3/100 on a composite quality score built from its SEC filings, placing it at rank #941 of 2,925 stocks — the top half of the AI-ranked universe. BBWI scores in the top quartile across balance sheet strength (93.5), revenue scale (82.8). Areas of concern include revenue growth (21.3), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2027), Bath & Body Works, Inc. reports quarterly revenue of $1.5B, net income of $118.0M, an operating margin of 14.3%. Top institutional holders of BBWI by reported 13-F value include FMR, BlackRock, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. BBWI trades on the NYSE exchange and files with the SEC under CIK 701985. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate BBWI daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Bath & Body Works, Inc. directly from SEC EDGAR.