Bath & Body Works (NYSE:BBWI) Releases Earnings Results, Beats Expectations By $0.03 EPS

Bath & Body Works (NYSE:BBWI) released its quarterly earnings results on Wednesday. The company reported $0.32 EPS for the quarter, topping analysts’ consensus estimates of $0.29 by $0.03, FiscalAI reports. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.Bath & Body Works’s revenue was down 3.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.49 earnings per share. 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 Performance

Shares of Bath & Body Works stock opened at $19.56 on Thursday. The business’s 50 day simple moving average is $18.65 and its 200 day simple moving average is $20.24. Bath & Body Works has a 52-week low of $14.27 and a 52-week high of $33.96. The firm has a market cap of $3.94 billion, a PE ratio of 6.21, a P/E/G ratio of 1.76 and a beta of 1.43.

Bath & Body Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Investors of record on Friday, June 5th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Friday, June 5th. Bath & Body Works’s dividend payout ratio (DPR) is currently 25.40%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Bath & Body Works in a research report on Monday, April 20th. TD Cowen dropped their price target on Bath & Body Works from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, May 18th. Citigroup lowered Bath & Body Works from a “buy” rating to a “neutral” rating and raised their price target for the stock from $21.00 to $25.00 in a research report on Tuesday, February 17th. Telsey Advisory Group lifted their target price on Bath & Body Works from $23.00 to $25.00 and gave the company a “market perform” rating in a research report on Thursday, March 5th. Finally, Piper Sandler began coverage on Bath & Body Works in a research report on Friday, May 15th. They issued a “neutral” rating and a $20.00 target price on the stock. Three investment analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company’s stock. According to MarketBeat, Bath & Body Works presently has an average rating of “Hold” and an average price target of $21.21.

Bath & Body Works News Roundup

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

• Positive Sentiment: Bath & Body Works topped Q1 estimates with adjusted EPS of $0.32 versus $0.29 expected and revenue of $1.38 billion versus $1.36 billion forecast, helping drive a sharp rally in the stock. Bath & Body Works beats quarterly estimates on strong demand for ‘affordable luxury’
• Positive Sentiment: Management said turnaround momentum is building and reaffirmed full-year 2026 guidance, which suggests the business is performing better than feared despite lower sales year over year. Bath & Body Works Reports First Quarter Results Exceeding Guidance and Progress Against the Consumer First Formula
• Positive Sentiment: The company also guided Q2 adjusted EPS to $0.30, above the $0.20 consensus, reinforcing confidence in near-term profitability. Bath & Body Works, Inc. (NYSE:BBWI) Receives Consensus Recommendation of “Hold” from Brokerages
• Neutral Sentiment: Analyst sentiment remains cautious overall, with brokerages maintaining a consensus “Hold” rating on the stock.
• Negative Sentiment: Revenue still fell 3.2% year over year in the quarter, showing the turnaround is not complete and sales pressure remains a headwind for the stock.
• Negative Sentiment: Bath & Body Works also disclosed that CFO Eva Boratto will step down in June, adding some leadership uncertainty even as the company searches for an interim replacement.

Institutional Investors Weigh In On Bath & Body Works

Hedge funds and other institutional investors have recently bought and sold shares of the company. 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 worth $13,112,000 after purchasing an additional 198,324 shares during the last quarter. Corient Private Wealth LLC increased its position in shares of Bath & Body Works by 475.8% during the 4th quarter. Corient Private Wealth LLC now owns 97,202 shares of the company’s stock worth $1,952,000 after purchasing an additional 80,322 shares during the last quarter. Alberta Investment Management Corp acquired a new position in shares of Bath & Body Works during the 4th quarter worth approximately $1,135,000. Mercer Global Advisors Inc. ADV increased its position in shares of Bath & Body Works by 39.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 161,935 shares of the company’s stock worth $3,252,000 after purchasing an additional 45,713 shares during the last quarter. Finally, XTX Topco Ltd increased its position in shares of Bath & Body Works by 65.2% during the 4th quarter. XTX Topco Ltd now owns 80,548 shares of the company’s stock worth $1,617,000 after purchasing an additional 31,781 shares during the last quarter. 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.