Overview

• U.S. personal care retailer's Q1 net sales fell 3% but beat analyst expectations

• Adjusted EPS for Q1 was $0.32, beating analyst expectations

• CFO Eva Boratto to step down June 12; interim CFO appointed

Outlook

• Bath & Body Works maintains 2026 net sales guidance of down 4.5% to down 2.5%

• Company expects 2026 adj EPS of $2.40 to $2.65

• Bath & Body Works forecasts Q2 net sales to decline 5% to 3%

Result Drivers

• CORE CATEGORY INITIATIVES - Co said efforts to strengthen hero categories, modernize the brand, and expand reach are beginning to resonate with consumers, per CEO Daniel Heaf

• SALES DECLINE - Q1 net sales fell 3%, with U.S. and Canada store sales down 4.3% and direct sales down 1.5%, partially offset by 9% growth in international and other sales

Company press release: ID:nGNX71Rbbh

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$1.38 bln	$1.36 bln (15 Analysts)
Q1 Adjusted EPS	Beat	$0.32	$0.29 (15 Analysts)
Q1 EPS		$0.90

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."

• Wall Street's median 12-month price target for Bath & Body Works Inc is $25.00, about 41% above its May 26 closing price of $17.73

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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