Bath & Body Works (NYSE:BBWI) Issues FY 2026 Earnings Guidance

Bath & Body Works (NYSE:BBWI) updated its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 2.600-2.800 for the period, compared to the consensus earnings per share estimate of 2.560. The company issued revenue guidance of $7.5 billion-$7.6 billion, compared to the consensus revenue estimate of $7.0 billion. Bath & Body Works also updated its Q3 2026 guidance to 0.070-0.120 EPS.

Analysts Set New Price Targets

A number of research firms recently issued reports on BBWI. Weiss Ratings upgraded shares of Bath & Body Works from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, July 9th. UBS Group restated a “neutral” rating on shares of Bath & Body Works in a report on Wednesday, August 19th. The Goldman Sachs Group downgraded shares of Bath & Body Works from a “neutral” rating to a “sell” rating and decreased their price target for the company from $23.00 to $19.00 in a research note on Wednesday, July 8th. Telsey Advisory Group dropped their price objective on shares of Bath & Body Works from $25.00 to $22.00 and set a “market perform” rating on the stock in a report on Thursday, May 28th. Finally, Piper Sandler began coverage on shares of Bath & Body Works in a research report on Friday, May 15th. They set a “neutral” rating and a $20.00 price objective on the stock. Four analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Bath & Body Works presently has an average rating of “Hold” and an average price target of $22.57.

Bath & Body Works Trading Up 7.6%

NYSE BBWI opened at $18.92 on Thursday. The company has a market cap of $3.81 billion, a P/E ratio of 5.31, a PEG ratio of 1.73 and a beta of 1.38. The company has a fifty day simple moving average of $20.36 and a 200 day simple moving average of $20.01. Bath & Body Works has a 12-month low of $14.27 and a 12-month high of $32.32.

Bath & Body Works (NYSE:BBWI) last released its quarterly earnings data on Wednesday, August 26th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the company posted $0.30 earnings per share. The business’s revenue was down 2.3% on a year-over-year basis. 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. Sell-side analysts predict that Bath & Body Works will post 2.63 EPS for the current year.

Bath & Body Works Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be issued a $0.20 dividend. 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 currently 22.47%.

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

Hedge Funds Weigh In On Bath & Body Works

A number of hedge funds have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC bought a new stake in Bath & Body Works during the 4th quarter worth approximately $31,000. Geneos Wealth Management Inc. lifted its holdings in shares of Bath & Body Works by 217.7% in the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after purchasing an additional 801 shares in the last quarter. Parallel Advisors LLC lifted its holdings 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 purchasing an additional 567 shares in the last quarter. Danske Bank A S purchased a new position in shares of Bath & Body Works during the third quarter valued at approximately $39,000. Finally, Advisory Services Network LLC purchased a new position in shares of Bath & Body Works during the third quarter valued at approximately $48,000. 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.