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

Bath & Body Works (NYSE:BBWI) announced its earnings results on Wednesday. The company reported $2.05 earnings per share for the quarter, beating the consensus estimate of $1.77 by $0.28, FiscalAI reports. Bath & Body Works had a negative return on equity of 47.35% and a net margin of 9.50%.The company had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.59 billion. During the same period last year, the business posted $2.09 EPS. The company’s revenue was down 2.3% on a year-over-year basis. Bath & Body Works updated its Q1 2026 guidance to 0.240-0.300 EPS and its FY 2026 guidance to 2.400-2.650 EPS.

Here are the key takeaways from Bath & Body Works’ conference call:

• Bath & Body Works reported a better-than-expected Q4 with net sales down ~2.3% but adjusted EPS of $2.05 that exceeded expectations, signaling resilience versus the company’s prior guidance floor.
• Management frames 2026 as an “investment year” and expects full-year net sales down ~4.5% to 2.5% with gross-profit pressure (≈130 bps headwind) and adjusted EPS guidance of $2.40–$2.65, plus a Q1 comp headwind (net sales down 6%–4%).
• The new multi-year “Consumer First Formula” centers on product innovation (early success with a new moisturizing hand soap) and a refreshed brand/labeling strategy that management expects will drive renewed consumer acquisition and pricing power as new launches roll out in H2 2026 and into 2027.
• The company launched on Amazon (Feb 20) and is expanding international distribution—management expects ~$50M of growth from expanded distribution and sees international nearing $1B in retail sales, both positioned to broaden reach and new-to-brand acquisition.
• Management targets $250M of Fuel for Growth savings over two years (≈$175M in 2026) to fund innovation and digital investment, while planning ~$270M capex, ~$600M free cash flow for 2026 and no share repurchases assumed in the outlook.

Bath & Body Works Price Performance

BBWI traded up $0.93 during trading on Wednesday, reaching $23.36. 3,670,414 shares of the stock were exchanged, compared to its average volume of 5,007,699. The company has a market capitalization of $4.78 billion, a price-to-earnings ratio of 7.19, a P/E/G ratio of 0.97 and a beta of 1.48. Bath & Body Works has a 1 year low of $14.27 and a 1 year high of $35.21. The business’s 50 day moving average price is $22.25 and its two-hundred day moving average price is $23.59.

Bath & Body Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Investors of record on Friday, February 20th will be issued a dividend of $0.20 per share. The ex-dividend date of this dividend is Friday, February 20th. This represents a $0.80 annualized dividend and a yield of 3.4%. Bath & Body Works’s payout ratio is currently 24.62%.

Key Stories Impacting Bath & Body Works

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

• Positive Sentiment: Q4 results beat expectations — Bath & Body Works reported adjusted EPS of $2.05 and revenue of $2.72B, both topping street estimates, which drove an early positive reaction in premarket trading. Stronger-than-expected quarterly execution supports near-term earnings visibility. Bath & Body Works (BBWI) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management says strategic pivot is progressing — the company highlighted progress on its “Consumer First” formula (innovation, brand elevation, marketplace expansion), which investors may view as constructive for medium‑term margin and category focus. Company Press Release
• Neutral Sentiment: Analyst price target moves — Deutsche Bank and Barclays nudged price targets/rating levels (small adjustments, both maintain non‑buy stances), which suggests analysts are cautious despite the beat. Deutsche Bank Adjusts PT
• Neutral Sentiment: Earnings and slide materials available — company posted its press release and slide deck; useful for investors wanting detail on comps, margin drivers and channel performance. Slide Deck / Press Release
• Negative Sentiment: Guidance disappointed — FY2026 EPS guidance of $2.40–2.65 and Q1 guidance of $0.24–0.30 are below consensus (FY and Q1), reducing near‑term upside and tempering the positive surprise from the quarter. Guidance and Results
• Negative Sentiment: Company forecasts steeper annual sales decline — management flagged weaker demand for higher‑priced fragrance and candle items as consumers pull back, a drag on top‑line recovery. Reuters: Forecasts Steeper Sales Decline
• Negative Sentiment: Multiple securities‑class action notices — several law firms have filed or notified investors of class actions covering mid‑2024 to late‑2025 periods, creating potential legal overhang and headline risk. Deadlines for lead‑plaintiff motions are imminent. Levi & Korsinsky Notice
• Negative Sentiment: Institutional selling noted — a large stake was liquidated last quarter (Cooper Creek), which reduced an institutional position by roughly $129M and can add downward pressure on shares. Fool: Stake Liquidated

Institutional Investors Weigh In On Bath & Body Works

Several institutional investors and hedge funds have recently made changes to their positions in the business. Global Retirement Partners LLC purchased a new position in Bath & Body Works in the fourth quarter valued at approximately $31,000. Geneos Wealth Management Inc. grew its stake in Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock worth $35,000 after buying an additional 801 shares during the period. Parallel Advisors LLC grew its stake in Bath & Body Works by 42.6% during the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock worth $38,000 after buying an additional 567 shares during the period. Danske Bank A S acquired a new stake in shares of Bath & Body Works in the third quarter worth $39,000. Finally, Advisory Services Network LLC purchased a new position in shares of Bath & Body Works in the 3rd quarter valued at $48,000. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several brokerages have recently weighed in on BBWI. Morgan Stanley reaffirmed an “equal weight” rating and issued a $18.00 target price (down from $43.00) on shares of Bath & Body Works in a report on Friday, November 21st. Raymond James Financial restated a “market perform” rating on shares of Bath & Body Works in a research report on Wednesday, November 12th. Wells Fargo & Company lowered their price objective on Bath & Body Works from $33.00 to $25.00 and set an “overweight” rating on the stock in a report on Friday, November 21st. Citigroup cut Bath & Body Works from a “buy” rating to a “neutral” rating and boosted their target price for the stock from $21.00 to $25.00 in a research report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. reduced their price target on Bath & Body Works from $26.00 to $15.00 and set a “neutral” rating for the company in a report on Thursday, November 20th. Three equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat, Bath & Body Works presently has an average rating of “Hold” and a consensus price target of $23.86.

About Bath & Body Works

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.