Bath & Body Works (NYSE:BBWI) Stock Price Down 3.3% – Should You Sell?

Shares of Bath & Body Works, Inc. (NYSE:BBWI) fell 3.3% during trading on Tuesday . The company traded as low as $18.52 and last traded at $18.5390. Approximately 1,114,994 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 5,640,770 shares. The stock had previously closed at $19.17.

Key Stories Impacting Bath & Body Works

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

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. 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 report on Thursday, May 28th. JPMorgan Chase & Co. lifted their price objective on shares of Bath & Body Works from $22.00 to $24.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Weiss Ratings raised shares of Bath & Body Works from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, July 9th. Piper Sandler initiated coverage on shares of 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. Finally, Telsey Advisory Group lowered their price target on shares of Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating for the company in a report on Thursday, May 28th. Four research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $22.57.

Bath & Body Works Stock Up 7.6%

The firm has a market capitalization of $3.81 billion, a price-to-earnings ratio of 5.31, a P/E/G ratio of 1.73 and a beta of 1.38. The company has a 50-day moving average price of $20.36 and a 200-day moving average price of $20.01.

Bath & Body Works (NYSE:BBWI) last announced its earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.38. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same quarter in the prior year, the firm posted $0.30 EPS. Bath & Body Works’s revenue was down 2.3% compared to the same quarter last year. 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. As a group, analysts forecast that Bath & Body Works, Inc. will post 2.63 earnings per share for the current year.

Bath & Body Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 4th. Stockholders of record on Friday, August 21st will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date is Friday, August 21st. Bath & Body Works’s dividend payout ratio is 22.47%.

Institutional Trading of Bath & Body Works

Several institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Bath & Body Works in the 2nd quarter valued at approximately $449,065,000. AQR Capital Management LLC increased its position in Bath & Body Works by 132.5% in the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock worth $229,834,000 after purchasing an additional 6,523,960 shares during the last quarter. Alliancebernstein L.P. raised its position in Bath & Body Works by 5.8% during the second quarter. Alliancebernstein L.P. now owns 5,737,796 shares of the company’s stock valued at $171,904,000 after acquiring an additional 315,738 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of Bath & Body Works by 2,145.0% during the 2nd quarter. California State Teachers Retirement System now owns 5,363,801 shares of the company’s stock valued at $124,065,000 after purchasing an additional 5,124,881 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Bath & Body Works by 2.9% in the fourth quarter. Geode Capital Management LLC now owns 3,960,475 shares of the company’s stock worth $79,542,000 after buying an additional 110,602 shares during the last quarter. Institutional investors and hedge funds own 95.14% of the company’s stock.

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.