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

Bath & Body Works (NYSE:BBWI) released its quarterly earnings data on Wednesday. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03, FiscalAI reports. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The business had revenue of $1.38 billion during the quarter, compared to analysts’ expectations of $1.36 billion. During the same quarter last year, the business posted $0.49 EPS. The business’s revenue was down 3.2% on a year-over-year basis. Bath & Body Works updated its Q2 2026 guidance to 0.300-0.300 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 said Q1 net sales fell 3.2% to $1.4 billion and adjusted EPS was $0.32, both ahead of expectations but still below the company’s target performance.
• The company saw early signs that its Consumer First Formula is working, including stronger acceptance of new moisturizing/revitalizing hand soaps, double-digit AUR and SKU productivity gains, and about a 20% increase in White Barn Neutrals sales.
• Body care remained pressured, with sales down mid-teens in the quarter due to assortment issues in Everyday Luxuries and a mix shift toward accessories in the Disney collaboration.
• Management reaffirmed full-year 2026 guidance, including net sales of down 4.5% to down 2.5% and adjusted EPS of $2.40 to $2.65, citing early proof points in product, brand, and marketplace execution.
• The company is expanding distribution and improving the shopping experience through Amazon, a mobile-first website relaunch, and store-navigation upgrades across its fleet, while also noting a CFO transition with Eva Boratto departing and Tom Javitch stepping in as interim CFO.

Bath & Body Works Stock Up 4.5%

BBWI stock opened at $20.33 on Friday. The business has a 50 day moving average of $18.65 and a 200 day moving average of $20.22. The firm has a market cap of $4.09 billion, a PE ratio of 5.71, a price-to-earnings-growth ratio of 1.97 and a beta of 1.43. Bath & Body Works has a twelve month low of $14.27 and a twelve month high of $33.96.

Bath & Body Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 19th. Investors of record on Friday, June 5th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a yield of 3.9%. The ex-dividend date of this dividend is Friday, June 5th. Bath & Body Works’s dividend payout ratio (DPR) is 25.40%.

Key Bath & Body Works News

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

• Positive Sentiment: Bath & Body Works beat Q1 expectations, reporting adjusted EPS of $0.32 versus $0.29 expected and revenue of $1.38 billion versus $1.36 billion expected, while reaffirming its full-year outlook. The results eased fears about the turnaround and helped drive the stock higher. Article: Reuters – Bath & Body Works beats quarterly estimates on strong demand for ‘affordable luxury’
• Positive Sentiment: Management said its “Consumer First Formula” is gaining traction and suggested momentum could improve through 2026 and 2027, supporting investor optimism about a longer-term recovery. Article: Zacks – BBWI Stock Jumps 10% on Q1 Earnings Beat & Growth Strategy Optimism
• Positive Sentiment: TD Cowen raised its price target on BBWI to $25 from $20 and kept a buy rating, signaling more upside potential from current levels. Article: Benzinga – TD Cowen price target update
• Positive Sentiment: Wells Fargo also maintained an overweight rating and lowered its target only slightly to $25 from $29, which still implies meaningful upside. Article: Benzinga – Wells Fargo price target update
• Neutral Sentiment: Other firms trimmed targets as well, including Telsey Advisory Group to $22 and Goldman Sachs to $23, reflecting a more cautious view on the pace of the turnaround. Article: Benzinga – Analyst target revisions
• Neutral Sentiment: Brokerage consensus remains around Hold, suggesting analysts see improvement but not yet a clear, sustained growth story. Article: American Banking News – Consensus Recommendation of Hold
• Negative Sentiment: Revenue still fell 3.2% from a year ago, underscoring that Bath & Body Works is still working through a challenging turnaround and hasn’t returned to top-line growth yet. Article: WSJ – Bath & Body Works Sales Fall Amid Turnaround Efforts

Institutional Investors Weigh In On Bath & Body Works

A number of institutional investors have recently modified their holdings of the stock. Sivia Capital Partners LLC bought a new stake in shares of Bath & Body Works in the 2nd quarter worth $306,000. Atlas Capital Advisors Inc. bought a new stake in shares of Bath & Body Works in the 4th quarter worth $156,000. Stifel Financial Corp bought a new stake in shares of Bath & Body Works in the 4th quarter worth $209,000. Quadrant Capital Group LLC increased its holdings in shares of Bath & Body Works by 179.5% in the 4th quarter. Quadrant Capital Group LLC now owns 3,633 shares of the company’s stock worth $73,000 after purchasing an additional 2,333 shares in the last quarter. Finally, Commonwealth Equity Services LLC bought a new stake in shares of Bath & Body Works in the 4th quarter worth $211,000. 95.14% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Raymond James Financial restated a “market perform” rating on shares of Bath & Body Works in a research note on Wednesday. Citigroup cut Bath & Body Works from a “buy” rating to a “neutral” rating and raised their target price for the company from $21.00 to $25.00 in a research note on Tuesday, February 17th. Piper Sandler assumed coverage on Bath & Body Works in a research note on Friday, May 15th. They issued a “neutral” rating and a $20.00 target price for the company. Deutsche Bank Aktiengesellschaft raised their target price on 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, TD Cowen raised their target price on Bath & Body Works from $20.00 to $25.00 and gave the company a “buy” rating in a research note on Thursday. Three research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $21.93.

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.