Bath & Body Works reported second‑quarter net sales of $1.5 billion, a 2.3% decline from a year earlier, yet the figure topped internal forecasts and marked the first rise in direct‑to‑consumer revenue since 2021.
Quarterly performance and guidance
The retailer said full‑year net sales are now expected to fall between 2.5% and 4%, tightening the previous outlook of a 2.5%‑4.5% drop.
Amazon sales surged dramatically.
Executives noted the platform is pulling in younger, higher‑spending shoppers, a demographic the brand has struggled to capture in brick‑and‑mortar stores.
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In the same period, the company placed its products in roughly 600 Ulta Beauty locations, expanding physical reach beyond its own storefronts. The move is intended to make the brand more accessible to shoppers who prefer one‑stop beauty destinations.
Chief executive Daniel Heaf said on the earnings call, “Create products that people want, tell stories that people remember and make it easier to discover and buy.”
Strategic shifts and product innovation
The retailer completed its largest merchandising overhaul in a decade, reorganizing scents by fragrance family and aligning product walls with body care, hand soaps and home fragrance categories. The redesign aims to simplify the shopping experience, though Heaf warned that “stores remain under pressure, and we don’t expect it to just improve by putting new products in there.”
The firm fully exited the home‑care segment, which included laundry and kitchen items and contributed less than 1% of annual revenue. That decision, first hinted at in the spring, was framed as a focus on core categories that drive the bulk of sales.
Earlier this summer, the company launched the Fruit Fusion line with brand ambassador and creative partner Hilary Duff. The collection surpassed internal sales expectations, prompting plans to add two more fragrances in the next quarter.
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Analyst Neil Saunders of GlobalData observed that the Fruit Fusion range helped lift average selling prices and improve body‑care performance, calling the innovation “the right remedy for breaking through the growth barriers.”
While new scents arrive on shelves, the retailer acknowledges that store traffic will not rebound simply by refreshing inventory. Heaf emphasized the need to “earn a visit,” suggesting that experiential elements and digital integration will play larger roles.
The outlook for 2026 remains an “investment year,” part of a multiyear transformation plan unveiled last November. The blueprint calls for sustained spending on product development, channel expansion and brand storytelling.
Heaf said the company is delivering against the strategy and is exactly where it expects to be at this stage, showing confidence in the ongoing plan.
