Bath & Body Works Inc. (BBWI) stock plummeted 8.21% in Thursday's trading session following the release of its second-quarter earnings report and weak guidance for the third quarter. The personal care and home fragrance retailer's performance fell short of analysts' expectations, triggering a significant sell-off.

The company reported adjusted earnings per share of $0.37 for the second quarter, missing the consensus estimate of $0.38. While net sales increased slightly to $1.55 billion from $1.53 billion a year earlier, it still fell short of the $1.56 billion expected by analysts. The marginal revenue growth was overshadowed by rising costs, with general, administrative, and store operating expenses climbing 9% to $483 million for the quarter.

Adding to investor concerns, Bath & Body Works provided a disappointing outlook for the third quarter. The company expects Q3 earnings per share to range between $0.37 and $0.45, significantly below the analyst consensus of $0.49. This weak guidance, coupled with narrowed full-year sales growth projections of 1.5% to 2.7% (down from the previous 1% to 3%), contributed to the negative market reaction. The company's exposure to ongoing tariff issues, despite sourcing predominantly from North America, may also be weighing on investor sentiment. As retailers grapple with uncertain discretionary consumer spending and inflationary pressures, Bath & Body Works' performance and outlook have clearly rattled the market, resulting in the sharp stock decline.