Bath & Body Works (NYSE:BBWI) Releases Q3 2026 Earnings Guidance

Bath & Body Works (NYSE:BBWI) updated its third quarter 2026 earnings guidance on Wednesday. The company provided EPS guidance of 0.070-0.120 for the period, compared to the consensus estimate of 0.270. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.6 billion. Bath & Body Works also updated its FY 2026 guidance to 2.600-2.800 EPS.

Bath & Body Works Stock Up 7.6%

Shares of Bath & Body Works stock opened at $18.92 on Thursday. Bath & Body Works has a 12-month low of $14.27 and a 12-month high of $32.32. The stock has a market cap of $3.81 billion, a P/E ratio of 5.31, a P/E/G ratio of 1.73 and a beta of 1.38. The business’s 50 day moving average is $20.36 and its 200-day moving average is $20.01.

Bath & Body Works (NYSE:BBWI) last released its quarterly earnings data on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.24 by $0.38. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The firm’s revenue for the quarter was down 2.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.30 EPS. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. On average, sell-side analysts expect that Bath & Body Works will post 2.63 EPS for the current year.

Bath & Body Works Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be paid a $0.20 dividend. The ex-dividend date is Friday, August 21st. This represents a $0.80 dividend on an annualized basis and a yield of 4.2%. Bath & Body Works’s dividend payout ratio (DPR) is currently 22.47%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Jefferies Financial Group boosted their price objective on shares of Bath & Body Works from $22.00 to $23.00 and gave the stock a “hold” rating in a research note on Tuesday, July 28th. Raymond James Financial reiterated a “market perform” rating on shares of Bath & Body Works in a research note on Wednesday, May 27th. UBS Group reiterated a “neutral” rating on shares of Bath & Body Works in a report on Wednesday, August 19th. The Goldman Sachs Group downgraded Bath & Body Works from a “neutral” rating to a “sell” rating and lowered their price target for the stock from $23.00 to $19.00 in a research report on Wednesday, July 8th. Finally, Wells Fargo & Company upped their price objective on Bath & Body Works from $25.00 to $26.00 and gave the company an “overweight” rating in a research note on Tuesday, June 23rd. Four analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $22.57.

Bath & Body Works News Summary

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

• Positive Sentiment: BBWI reported adjusted earnings of $0.62 per share, well above the $0.24 consensus estimate, while revenue of $1.51 billion modestly exceeded expectations. Adjusted EPS also rose substantially from the year-ago period. Bath & Body Works Q2 earnings and revenues surpass estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80 from $2.40-$2.65 and expects revenue of approximately $7.5-$7.6 billion. The company cited digital demand, direct-sales growth and ongoing cost savings as key supports. Bath & Body Works lifts annual profit forecast
• Positive Sentiment: The company said its transformation is progressing, with improvements to the digital shopping experience supporting direct-channel sales. Strong cash generation and planned cost reductions could improve the balance sheet and create longer-term potential for debt repayment or buybacks. Bath & Body Works reports second-quarter results
• Neutral Sentiment: Despite the earnings beat, quarterly net sales fell 2.3% year over year. Digital demand offset, but did not fully eliminate, weaker store traffic, leaving investors focused on whether the turnaround can produce sustained top-line growth. Bath & Body Works results top expectations
• Negative Sentiment: BBWI’s third-quarter adjusted EPS outlook of just $0.07-$0.12 is well below the roughly $0.27 analyst consensus, although projected revenue of $1.6-$1.7 billion is broadly in line. This near-term profit warning appears to be the main reason the stock weakened following the results.
• Negative Sentiment: Unusually heavy put-option activity before earnings—23,399 puts, about 550% above average—signaled elevated downside hedging and may have amplified the negative reaction. Retail’s big Q2 beats came from Washington, not the consumer

Institutional Trading of Bath & Body Works

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

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.