Bath & Body Works, Inc. (NYSE:BBWI) Given Average Rating of "Hold" by Analysts

Key Points

• Analysts are cautious on BBWI: Bath & Body Works has an average rating of "Hold" from 18 analysts, with 15 holds and 3 buys. The consensus 12-month price target is about $21.21.
• Q1 results topped expectations, but sales still declined: The company reported adjusted EPS of $0.32 versus estimates of $0.29 and revenue of $1.38 billion versus $1.36 billion expected. However, revenue still fell 3.2% year over year, showing the turnaround is not yet back to growth.
• Management reaffirmed guidance and dividend remains attractive: Bath & Body Works kept its full-year outlook unchanged, with FY 2026 EPS guidance of $2.40 to $2.65, while also announcing a quarterly dividend of $0.20 per share for a 4.1% yield. The company is also undergoing a CFO transition, which adds some uncertainty.

Shares of Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) have earned an average rating of "Hold" from the eighteen ratings firms that are presently covering the company, MarketBeat.com reports. Fifteen research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $21.2143.

BBWI has been the topic of a number of recent analyst reports. Telsey Advisory Group boosted their price objective on shares of Bath & Body Works from $23.00 to $25.00 and gave the stock a "market perform" rating in a report on Thursday, March 5th. Raymond James Financial restated a "market perform" rating on shares of Bath & Body Works in a research note on Wednesday. UBS Group cut their target price on shares of Bath & Body Works from $22.00 to $19.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 20th. Weiss Ratings restated a "hold (c-)" rating on shares of Bath & Body Works in a research note on Monday, April 20th. Finally, Citigroup lowered shares of Bath & Body Works from a "buy" rating to a "neutral" rating and upped their target price for the company from $21.00 to $25.00 in a research note on Tuesday, February 17th.

Bath & Body Works News Summary

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

• Positive Sentiment: BBWI reported Q1 adjusted EPS and revenue above Wall Street expectations, suggesting the business is performing better than feared. Bath & Body Works Stock Pops As Management Signals Turnaround Momentum Building
• Positive Sentiment: Management reaffirmed full-year guidance, which helped reassure investors that the turnaround remains on track and reduced fears of a deeper slowdown. Bath & Body Works shares gain as Q1 beat and reaffirmed guidance reassure investors
• Neutral Sentiment: The company’s first-quarter sales still declined 3% year over year, showing that the turnaround is improving sentiment but has not yet returned the business to growth. Bath & Body Works Sales Fall Amid Turnaround Efforts
• Neutral Sentiment: Bath & Body Works also announced that CFO Eva Boratto will step down June 12, with an interim CFO and search process underway, adding some management transition risk. Bath-Body-Works-Reports-First-Quarter-Results-Exceeding-Guidance-and-Progress-Against-the-Consumer-First-Formula
• Negative Sentiment: While guidance was reaffirmed, full-year sales are still projected to decline, which may limit upside if the turnaround takes longer than expected. Bath-Body-Works-Reports-First-Quarter-Results-Exceeding-Guidance-and-Progress-Against-the-Consumer-First-Formula

Institutional Investors Weigh In On Bath & Body Works

A number of institutional investors have recently modified their holdings of BBWI. AQR Capital Management LLC raised its stake in shares of 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 valued at $229,834,000 after purchasing an additional 6,523,960 shares in the last quarter. American Century Companies Inc. raised its stake in shares of Bath & Body Works by 2,204.1% in the 3rd quarter. American Century Companies Inc. now owns 5,174,370 shares of the company's stock valued at $133,292,000 after purchasing an additional 4,949,796 shares in the last quarter. Jupiter Asset Management Ltd. raised its stake in shares of Bath & Body Works by 553.2% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 3,714,499 shares of the company's stock valued at $95,685,000 after purchasing an additional 3,145,797 shares in the last quarter. Norges Bank acquired a new stake in shares of Bath & Body Works in the 4th quarter valued at about $55,504,000. Finally, Balyasny Asset Management L.P. acquired a new stake in shares of Bath & Body Works in the 4th quarter valued at about $54,785,000. Institutional investors and hedge funds own 95.14% of the company's stock.

Bath & Body Works Trading Up 10.3%

NYSE:BBWI opened at $19.56 on Thursday. The firm has a market capitalization of $3.94 billion, a price-to-earnings ratio of 6.21, a PEG ratio of 1.76 and a beta of 1.43. The firm's fifty day simple moving average is $18.65 and its 200 day simple moving average is $20.24. Bath & Body Works has a twelve month low of $14.27 and a twelve month high of $33.96.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its quarterly earnings data on Wednesday, May 27th. The company reported $0.32 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.03. Bath & Body Works had a net margin of 8.90% and a negative return on equity of 45.60%. The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same quarter in the previous year, the business posted $0.49 EPS. The firm's revenue was down 3.2% compared to the same quarter last year. Bath & Body Works has set its Q2 2026 guidance at 0.300-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. On average, analysts predict that Bath & Body Works will post 2.61 earnings per share for the current year.

Bath & Body Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be paid a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Friday, June 5th. Bath & Body Works's dividend payout ratio is 25.40%.

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.

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