Bath & Body Works beats earnings estimates despite weaker sales

Bath & Body Works reported Q2 revenue of $1.5B, down 2.3% year over year, while adjusted EPS reached $0.62 versus the $0.24 expected.
Net income rose 84% to $118M, significantly above estimates.
However, management said underlying business trends remain pressured and expects full-year net sales to decline between 2.5% and 4%.
One positive sign was direct U.S. and Canadian sales, which grew 3% and recorded their first net sales growth since 2021.
$BBWI now expects full-year adjusted EPS of $2.60-$2.80 and roughly $650M in free cash flow.