Bath & Body Works (NYSE:BBWI) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Bath & Body Works (NYSE:BBWI - Get Free Report) posted its earnings results on Thursday. The company reported $0.49 EPS for the quarter, beating analysts' consensus estimates of $0.47 by $0.02, RTT News reports. Bath & Body Works had a negative return on equity of 44.03% and a net margin of 12.43%. The firm had revenue of $1.40 billion for the quarter, compared to analysts' expectations of $1.42 billion. During the same period last year, the firm earned $0.38 EPS. The company's quarterly revenue was up 2.9% on a year-over-year basis. Bath & Body Works updated its Q2 2025 guidance to 0.330-0.380 EPS.

Bath & Body Works Stock Down 1.5%

Shares of Bath & Body Works stock traded down $0.42 on Friday, hitting $28.16. 6,154,657 shares of the company were exchanged, compared to its average volume of 4,999,252. The stock has a market capitalization of $6.00 billion, a price-to-earnings ratio of 6.87, a price-to-earnings-growth ratio of 0.92 and a beta of 1.87. The company has a 50-day moving average price of $30.07 and a 200 day moving average price of $33.94. Bath & Body Works has a 1-year low of $24.96 and a 1-year high of $52.99.

Bath & Body Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, June 20th. Stockholders of record on Friday, June 6th will be issued a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 2.84%. The ex-dividend date is Friday, June 6th. Bath & Body Works's dividend payout ratio is currently 21.33%.

Bath & Body Works declared that its Board of Directors has authorized a stock buyback program on Thursday, February 27th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 6.4% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Barclays dropped their target price on Bath & Body Works from $35.00 to $30.00 and set an "equal weight" rating on the stock in a research report on Friday. Morgan Stanley dropped their target price on Bath & Body Works from $49.00 to $43.00 and set an "overweight" rating on the stock in a research report on Tuesday, May 6th. Wells Fargo & Company raised their target price on Bath & Body Works from $40.00 to $44.00 and gave the company an "overweight" rating in a research report on Wednesday, May 14th. Piper Sandler set a $39.00 price objective on Bath & Body Works and gave the stock an "overweight" rating in a report on Thursday, May 15th. Finally, Robert W. Baird lifted their price objective on Bath & Body Works from $45.00 to $47.00 and gave the stock an "outperform" rating in a report on Friday, February 28th. Four research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $42.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in BBWI. Royal Bank of Canada boosted its holdings in shares of Bath & Body Works by 92.8% during the 1st quarter. Royal Bank of Canada now owns 59,877 shares of the company's stock worth $1,815,000 after purchasing an additional 28,815 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Bath & Body Works by 15.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 645,970 shares of the company's stock worth $19,586,000 after purchasing an additional 87,529 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Bath & Body Works by 7.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 562,757 shares of the company's stock worth $17,063,000 after purchasing an additional 36,684 shares during the last quarter. Intech Investment Management LLC acquired a new position in shares of Bath & Body Works during the 1st quarter worth approximately $1,155,000. Finally, Geneos Wealth Management Inc. boosted its holdings 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 during the last quarter. 95.14% of the stock is currently owned by institutional investors and hedge funds.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailers and home to America's Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap.