Retail / news
Bath & Body Works Tops Q2 Expectations Despite Sales Slip
Bath & Body Works reported a 2.3 percent decline in second-quarter sales to $1.5 billion, but still beat Wall Street estimates. Digital sales grew 3 percent, the first increase since 2021, while in-store sales fell 5.4 percent.
The retailer's quarterly net sales came in at $1.5 billion, down 2.3 percent from a year earlier, yet ahead of analyst forecasts on both revenue and profit. The performance was driven by a long-awaited turnaround in digital sales, which climbed 3 percent in the quarter, marking the first growth in that channel since 2021.
That progress, however, was offset by continued weakness in physical retail, where sales dropped 5.4 percent. Chief Executive Officer Daniel Heaf acknowledged the company is still not operating at its full potential, noting that its U.S. and Canadian stores are not attracting enough customers.
Heaf said the transformation is on track but will take time, and pointed to a strong sequential improvement in body care as evidence of progress. He has been focused on upgrading Bath & Body Works' digital capabilities and expanding distribution through partners such as Amazon and Ulta Beauty.
The company also plans to increase marketing activity in the second half of the year, a shift Heaf said will make the brand more visible than ever.