Bath & Body Works (NYSE:BBWI) Shares Down 5% - Here's Why

Key Points

• Shares fell about 5%, closing near $19.08 on Monday with intraday volume of ~586,208 shares, roughly 89% below the average session volume.
• Mixed quarter but beat expectations: Bath & Body Works reported EPS of $2.05 versus $1.77 expected and revenue of $2.72B (down 2.3% YoY), and provided Q1 2026 guidance of $0.240–0.300 and FY 2026 guidance of $2.400–2.650 EPS.
• Analyst and investor backdrop: The consensus rating is "Hold" with an average target of $23, the stock yields ~4.2% annually, and ~95% of shares are institutionally owned after large purchases by several major funds.

Shares of Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) traded down 5% during trading on Monday . The stock traded as low as $19.20 and last traded at $19.0840. 586,208 shares traded hands during mid-day trading, a decline of 89% from the average session volume of 5,536,135 shares. The stock had previously closed at $20.09.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Bath & Body Works from $21.00 to $22.00 and gave the stock a "hold" rating in a research report on Tuesday, March 3rd. Citigroup downgraded shares of Bath & Body Works from a "buy" rating to a "neutral" rating and boosted their target price for the stock from $21.00 to $25.00 in a research report on Tuesday, February 17th. Barclays boosted their target price on shares of Bath & Body Works from $20.00 to $21.00 and gave the stock an "equal weight" rating in a research report on Monday, March 2nd. Jefferies Financial Group assumed coverage on shares of Bath & Body Works in a research report on Wednesday, January 14th. They issued a "hold" rating and a $24.00 target price for the company. Finally, Zacks Research raised shares of Bath & Body Works from a "strong sell" rating to a "hold" rating in a research report on Tuesday, January 20th. Three equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $23.00.

Bath & Body Works Stock Performance

The business's 50 day moving average is $20.31 and its 200-day moving average is $21.29. The firm has a market capitalization of $3.86 billion, a price-to-earnings ratio of 6.08, a price-to-earnings-growth ratio of 2.01 and a beta of 1.50.

Bath & Body Works (NYSE:BBWI - Get Free Report) last posted its earnings results on Wednesday, March 4th. The company reported $2.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.77 by $0.28. Bath & Body Works had a net margin of 8.90% and a negative return on equity of 45.60%. The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.59 billion. During the same period last year, the business posted $2.09 EPS. Bath & Body Works's revenue was down 2.3% compared to the same quarter last year. Bath & Body Works has set its Q1 2026 guidance at 0.240-0.300 EPS and its FY 2026 guidance at 2.400-2.650 EPS. Equities research analysts forecast that Bath & Body Works, Inc. will post 2.6 EPS for the current fiscal year.

Bath & Body Works Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 6th. Investors of record on Friday, February 20th were paid a $0.20 dividend. The ex-dividend date was Friday, February 20th. This represents a $0.80 dividend on an annualized basis and a yield of 4.2%. Bath & Body Works's dividend payout ratio (DPR) is presently 25.40%.

Institutional Trading of Bath & Body Works

A number of hedge funds have recently bought and sold shares of BBWI. AQR Capital Management LLC boosted its holdings 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 valued at $229,834,000 after purchasing an additional 6,523,960 shares during the period. American Century Companies Inc. boosted its holdings in 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 during the period. Jupiter Asset Management Ltd. boosted its holdings in 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 during the period. Norges Bank bought a new stake in Bath & Body Works in the 4th quarter valued at $55,504,000. Finally, Balyasny Asset Management L.P. bought a new stake in Bath & Body Works in the 4th quarter valued at $54,785,000. 95.14% of the stock is owned by institutional investors.

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.

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