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Aug 02
Bath & Body Works Q2 2025 Earnings Report
Bath & Body Works posted modest revenue growth and met adjusted EPS guidance for Q2 2025.
Key Takeaways
Bath & Body Works delivered Q2 results with revenue reaching $1.549B, up 1.5% year-over-year. While GAAP earnings were lower due to one-time costs, adjusted EPS matched last year's result. The company also raised the low end of its FY25 guidance.
Revenue rose 1.5% YoY to $1.549B, led by in-store sales growth in the U.S. and Canada.
GAAP EPS declined to $0.30, while adjusted EPS remained steady at $0.37.
Net income was $64M, down from $152M the previous year due to leadership transition costs.
Company raised the low end of full-year adjusted EPS guidance from $3.25 to $3.35.
Bath & Body Works
Bath & Body Works
Bath & Body Works Revenue by Segment
Bath & Body Works Revenue by Geographic Location
Revenue by Segment
Stores – U.S. and Canada Revenue
CapyFin.comDirect – U.S. and Canada Revenue
CapyFin.comInternational Revenue
CapyFin.comRevenue by Geographic Location
U.S. and Canada Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The company raised the low end of its full-year adjusted EPS guidance and expects modest revenue growth as it executes its strategic priorities.
Positive Outlook
- Raised low end of full-year adjusted EPS guidance to $3.35
- Narrowed net sales growth guidance to 1.5%–2.7%
- Planned $400M in share repurchases, up from $300M
- Strong free cash flow expected between $750M–$850M
- Focused on strategic growth in digital, product efficacy, and distribution
Challenges Ahead
- Lower GAAP net income due to leadership transition costs
- Declining online sales in U.S. and Canada (-10.1%)
- International revenue down 2.9% YoY
- Q3 EPS forecast ($0.37–$0.45) lower than prior year ($0.49)
- Total net income and operating income both declined YoY
Revenue & Expenses
Visualization of income flow from segment revenue to net income