Investing.com -- Bath & Body Works reported second-quarter earnings well ahead of analyst expectations and raised its full-year earnings outlook, while its third-quarter earnings forecast fell short of consensus.

The company reported second-quarter earnings per share of $0.62, smashing the analyst estimate of $0.24. Revenue came in at $1.5 billion, down 2.3% year-over-year and roughly in line with the $1.5 billion consensus estimate.

“Our second-quarter results exceeded our sales and earnings per share guidance. Underlying business trends remain pressured, but we are seeing further evidence that elements of the Consumer First Formula are beginning to work," said CEO Daniel Heaf.

“Additionally, this quarter marks the first direct net sales growth since 2021. The investments we’ve made over the past year are strengthening the customer proposition through a more seamless and engaging shopping experience, and these improvements are resonating with consumers," he added.

For the third quarter of 2026, Bath & Body Works expects net sales to decline 2.5% to 5% compared with $1.59 billion in the same period last year. Adjusted earnings per diluted share are expected in a range of $0.07 to $0.12, well below the $0.26 consensus estimate.

The company narrowed its full-year 2026 net sales guidance to a decline of 2.5% to 4%, compared with $7,291 million in fiscal 2025. Bath & Body Works raised its full-year earnings per share guidance to $2.60 to $2.80, up from a prior range of $2.40 to $2.65 and above the $2.65 consensus estimate.