Bath & Body Works (NYSE:BBWI) Issues Quarterly Earnings Results

Bath & Body Works (NYSE:BBWI) posted its quarterly earnings results on Wednesday. The company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38, FiscalAI reports. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. Bath & Body Works updated its Q3 2026 guidance to 0.070-0.120 EPS and its FY 2026 guidance to 2.600-2.800 EPS.

Bath & Body Works Trading Down 8.3%

Shares of NYSE BBWI opened at $17.58 on Wednesday. The firm’s 50-day moving average price is $20.39 and its 200-day moving average price is $20.03. The stock has a market capitalization of $3.54 billion, a price-to-earnings ratio of 4.94, a P/E/G ratio of 1.89 and a beta of 1.38. Bath & Body Works has a 12-month low of $14.27 and a 12-month high of $32.32.

Bath & Body Works Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be issued a $0.20 dividend. The ex-dividend date is Friday, August 21st. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.6%. Bath & Body Works’s payout ratio is 22.47%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in BBWI. Invesco Ltd. increased its position in shares of Bath & Body Works by 43.6% during the 4th quarter. Invesco Ltd. now owns 652,991 shares of the company’s stock valued at $13,112,000 after purchasing an additional 198,324 shares during the last quarter. Corient Private Wealth LLC raised its holdings in Bath & Body Works by 475.8% during the 4th quarter. Corient Private Wealth LLC now owns 97,202 shares of the company’s stock valued at $1,952,000 after buying an additional 80,322 shares during the period. Alberta Investment Management Corp bought a new stake in Bath & Body Works in the fourth quarter worth $1,135,000. Mercer Global Advisors Inc. ADV lifted its position in Bath & Body Works by 39.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 161,935 shares of the company’s stock worth $3,252,000 after buying an additional 45,713 shares during the last quarter. Finally, XTX Topco Ltd boosted its stake in Bath & Body Works by 65.2% during the fourth quarter. XTX Topco Ltd now owns 80,548 shares of the company’s stock worth $1,617,000 after buying an additional 31,781 shares during the period. Hedge funds and other institutional investors own 95.14% of the company’s stock.

Analysts Set New Price Targets

BBWI has been the topic of several recent analyst reports. Raymond James Financial restated a “market perform” rating on shares of Bath & Body Works in a research report on Wednesday, May 27th. Jefferies Financial Group boosted their price objective on Bath & Body Works from $22.00 to $23.00 and gave the company a “hold” rating in a research report on Tuesday, July 28th. UBS Group reaffirmed a “neutral” rating on shares of Bath & Body Works in a research note on Wednesday, August 19th. JPMorgan Chase & Co. lifted their target price on Bath & Body Works from $22.00 to $24.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Finally, Barclays dropped their price target on Bath & Body Works from $25.00 to $23.00 and set an “equal weight” rating for the company in a research note on Thursday, May 28th. Four research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $22.57.

Bath & Body Works News Summary

Here are the key news stories impacting Bath & Body Works this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Net sales were approximately $1.5 billion, while adjusted diluted EPS was $0.62, topping the $0.24 analyst consensus. The company said results exceeded its guidance, supported by demand for body-care products and home fragrances. Bath & Body Works Reports Second Quarter Results Exceeding Guidance
• Positive Sentiment: Full-year adjusted earnings guidance was raised. Bath & Body Works now expects adjusted EPS of $2.60 to $2.80, above the roughly $2.56 consensus estimate. Revenue guidance was set at $7.5 billion to $7.6 billion, also above the $7.0 billion consensus, while the company narrowed its expected annual sales decline to 2%–4%. Bath & Body Works lifts annual profit forecast
• Positive Sentiment: Digital and direct-channel demand is improving. Direct net sales grew as the company enhanced its digital shopping experience, helping offset weaker traffic in physical stores and supporting management’s transformation strategy.
• Neutral Sentiment: Analysts had revised expectations ahead of the report, and options markets indicated the potential for a sizable post-earnings move. This points to elevated volatility rather than a clear fundamental signal. Analysts revise forecasts ahead of earnings
• Negative Sentiment: Third-quarter guidance is well below consensus. The company forecast adjusted EPS of only $0.07 to $0.12 versus the $0.27 analyst estimate, although revenue guidance of $1.6 billion to $1.7 billion roughly matches expectations. The weak near-term profit outlook is likely the main reason investors are selling the stock.
• Negative Sentiment: Second-quarter sales fell 2.3%, and weak store traffic remains a concern. In addition, traders purchased 23,399 put options—about 550% above average daily volume—signaling increased bearish hedging or speculation ahead of the results.

Bath & Body Works Company Profile

Bath & Body Works, Inc is a leading specialty retailer focused on personal care, home fragrance and complementary products. Through its flagship Bath & Body Works brand, the company offers a diverse assortment of shower gels, lotions, fragrance mists, candles and home fragrance items. Its product portfolio also includes the White Barn Candle Co range of premium scented candles and diffusers. Bath & Body Works serves consumers through a combination of brick-and-mortar stores and e-commerce platforms, delivering seasonal collections, limited-edition releases and signature scent lines.

Founded in 1990 as part of Limited Brands (now L Brands), Bath & Body Works opened its first store in New Albany, Ohio, and quickly expanded across the United States.