By Nicholas G. Miller

Bath & Body Works reported lower first-quarter sales as the company overhauls its strategy in an attempt to return to growth.

The company posted net income of $183 million, or 90 cents a share, compared with $105 million, or 49 cents a share, the year prior.

The results included an $88 million pre-tax gain related to favorable settlements of payment card interchange fee litigation and a $62 million benefit from the resolution of certain tax matters.

Adjusted earnings were 32 cents a share. Analysts polled by FactSet expected 29 cents a share.

Net sales fell 3% to $1.38 billion. Wall Street expected $1.36 billion.

The company reiterated its guidance for fiscal-year 2026 net sales to be down 2.5% to 4.5% and adjusted earnings of $2.40 to $2.65 a share. Analysts see full-year adjusted earnings of $2.64 a share.

For the second quarter, the company is forecasting net sales to decline by 3% to 5% and earnings to be between 20 cents and 25 cents a share.

"Our first-quarter results exceeded guidance, but remain below the standard our brand is capable of delivering," said Chief Executive Daniel Heaf. "We believe that the foundation we are building will drive improved performance over time, with the impact expected to build through the balance of 2026 and more meaningfully into 2027, as we position the company to return to sustainable, durable growth."

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

May 27, 2026 07:14 ET (11:14 GMT)

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