Bath & Body Works (NYSE:BBWI) Shares Gap Up on Earnings Beat

Bath & Body Works, Inc. (NYSE:BBWI) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $17.73, but opened at $19.50. Bath & Body Works shares last traded at $20.45, with a volume of 3,124,451 shares trading hands.

The company reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.03. Bath & Body Works had a net margin of 8.90% and a negative return on equity of 45.60%. The business had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter in the previous year, the firm posted $0.49 earnings per share. The firm’s revenue for the quarter was down 3.2% on a year-over-year basis. Bath & Body Works has set its Q2 2026 guidance at 0.300-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS.

Bath & Body Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be paid a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Friday, June 5th. Bath & Body Works’s dividend payout ratio is currently 25.40%.

Key Headlines Impacting Bath & Body Works

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

• Positive Sentiment: Bath & Body Works beat first-quarter estimates, reporting adjusted EPS of $0.32 versus the $0.29 consensus, while net sales of about $1.4 billion also came in above guidance. Article Title
• Positive Sentiment: The company said it expects Q2 EPS of $0.30, above the $0.20 consensus, suggesting near-term earnings momentum is better than analysts expected.
• Positive Sentiment: Bath & Body Works reaffirmed full-year 2026 guidance with adjusted EPS of $2.40 to $2.65, which is at or above market expectations, helping support sentiment around the turnaround.
• Neutral Sentiment: The company reiterated full-year sales guidance of roughly $7.0 billion to $7.1 billion, indicating management still expects a challenging but stable revenue backdrop.
• Negative Sentiment: First-quarter sales were still down 3% year over year, and the company is continuing to overhaul its strategy to return to growth. Article Title
• Negative Sentiment: Investors may also be watching the leadership transition, as CFO Eva Boratto is set to step down in June, with an interim CFO named and a search underway, adding some execution risk.

Analyst Ratings Changes

BBWI has been the topic of several recent analyst reports. Piper Sandler initiated coverage on Bath & Body Works in a research note on Friday, May 15th. They issued a “neutral” rating and a $20.00 price target on the stock. TD Cowen dropped their price objective on Bath & Body Works from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, May 18th. Telsey Advisory Group lifted their price objective on Bath & Body Works from $23.00 to $25.00 and gave the company a “market perform” rating in a report on Thursday, March 5th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Bath & Body Works from $21.00 to $22.00 and gave the company a “hold” rating in a research note on Tuesday, March 3rd. Finally, Citigroup lowered shares of Bath & Body Works from a “buy” rating to a “neutral” rating and upped their target price for the stock from $21.00 to $25.00 in a report on Tuesday, February 17th. Three investment analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat, Bath & Body Works currently has a consensus rating of “Hold” and an average target price of $21.21.

Institutional Investors Weigh In On Bath & Body Works

A number of large investors have recently bought and sold shares of the business. AQR Capital Management LLC increased its holdings in Bath & Body Works by 132.5% during the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock valued at $229,834,000 after purchasing an additional 6,523,960 shares in the last quarter. Alliancebernstein L.P. boosted its stake in Bath & Body Works by 2.2% in the third quarter. Alliancebernstein L.P. now owns 5,861,444 shares of the company’s stock worth $150,991,000 after purchasing an additional 123,648 shares in the last quarter. American Century Companies Inc. grew its holdings in shares of Bath & Body Works by 2,204.1% during the third quarter. American Century Companies Inc. now owns 5,174,370 shares of the company’s stock worth $133,292,000 after purchasing an additional 4,949,796 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Bath & Body Works by 2.9% during the fourth quarter. Geode Capital Management LLC now owns 3,960,475 shares of the company’s stock worth $79,542,000 after purchasing an additional 110,602 shares during the last quarter. Finally, Jupiter Asset Management Ltd. increased its stake in shares of Bath & Body Works by 553.2% in the third quarter. Jupiter Asset Management Ltd. now owns 3,714,499 shares of the company’s stock valued at $95,685,000 after buying an additional 3,145,797 shares in the last quarter. 95.14% of the stock is currently owned by institutional investors.

Bath & Body Works Price Performance

The stock has a 50 day moving average price of $18.67 and a two-hundred day moving average price of $20.26. The company has a market capitalization of $4.19 billion, a price-to-earnings ratio of 6.58, a price-to-earnings-growth ratio of 1.77 and a beta of 1.43.

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.