Quarterly ResultMay 27, 2026, 04:28 PM
Bath & Body Works Q1 Net Income Jumps 74% to $183M; Sales Down 3.2%
AI Summary
Bath & Body Works reported a significant increase in first-quarter net income and diluted EPS, primarily driven by an $88 million pre-tax gain from payment card interchange fee settlements and a $62 million tax benefit from resolving certain tax matters. This occurred despite a 3.2% decrease in net sales to $1.378 billion. The company also repurchased $289 million of its 2027 Notes, incurring an $8 million loss on extinguishment of debt, and continues its multi-year Consumer First Formula transformation plan.
Key Highlights
- Net Income increased 74.3% to $183 million in Q1 2026 from $105 million in Q1 2025.
- Diluted EPS rose to $0.90 in Q1 2026, up from $0.49 in Q1 2025.
- Net Sales decreased 3.2% to $1.378 billion in Q1 2026 from $1.424 billion in Q1 2025.
- Operating Income increased 10.5% to $231 million, benefiting from an $88 million interchange fee settlement gain.
- Recognized a $62 million tax benefit from the resolution of certain tax matters in Q1 2026.
- Repurchased $289 million of 2027 Notes, resulting in an $8 million pre-tax loss on debt extinguishment.
- Paid ordinary cash dividends of $0.20 per share, totaling $40 million in Q1 2026.
- U.S. and Canada Stores sales were $1.062 billion, while International and Other sales increased to $70 million.
Price Impact
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