Bath & Body Works (NYSE:BBWI) Shares Gap Up on Earnings Beat

Key Points

• Bath & Body Works shares jumped after the company beat first-quarter expectations, opening well above the prior close and trading sharply higher on the news.
• The retailer reported adjusted EPS of $0.32 versus the $0.29 consensus and revenue of about $1.38 billion, both ahead of estimates, though sales were still down year over year.
• Management sees improved near-term momentum, guiding Q2 EPS to $0.30 and reaffirming full-year 2026 EPS of $2.40 to $2.65; the company also announced a quarterly dividend of $0.20 per share.

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $17.73, but opened at $19.50. Bath & Body Works shares last traded at $20.45, with a volume of 3,124,451 shares.

The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.36 billion. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.The company's revenue for the quarter was down 3.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.49 EPS. 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.

Bath & Body Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 19th. Investors of record on Friday, June 5th will be paid a $0.20 dividend. The ex-dividend date is Friday, June 5th. This represents a $0.80 dividend on an annualized basis and a yield of 3.8%. Bath & Body Works's dividend payout ratio (DPR) is presently 25.40%.

Bath & Body Works News Summary

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

• Positive Sentiment: Bath & Body Works beat first-quarter estimates, reporting adjusted EPS of $0.32 versus the $0.29 consensus, while net sales of about $1.4 billion also came in above guidance. Article Title
• Positive Sentiment: The company said it expects Q2 EPS of $0.30, above the $0.20 consensus, suggesting near-term earnings momentum is better than analysts expected.
• Positive Sentiment: Bath & Body Works reaffirmed full-year 2026 guidance with adjusted EPS of $2.40 to $2.65, which is at or above market expectations, helping support sentiment around the turnaround.
• Neutral Sentiment: The company reiterated full-year sales guidance of roughly $7.0 billion to $7.1 billion, indicating management still expects a challenging but stable revenue backdrop.
• Negative Sentiment: First-quarter sales were still down 3% year over year, and the company is continuing to overhaul its strategy to return to growth. Article Title
• Negative Sentiment: Investors may also be watching the leadership transition, as CFO Eva Boratto is set to step down in June, with an interim CFO named and a search underway, adding some execution risk.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Raymond James Financial restated a "market perform" rating on shares of Bath & Body Works in a report on Wednesday. TD Cowen decreased their target price on Bath & Body Works from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, May 18th. Barclays lifted their price target on 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. UBS Group cut their target price on shares of Bath & Body Works from $22.00 to $19.00 and set a "neutral" rating for the company in a research note on Wednesday, May 20th. Finally, Piper Sandler initiated coverage on shares of Bath & Body Works in a report on Friday, May 15th. They issued a "neutral" rating and a $20.00 price target for the company. Three analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $21.21.

Institutional Trading of Bath & Body Works

A number of hedge funds have recently modified their holdings of BBWI. Global Retirement Partners LLC bought a new stake in shares of Bath & Body Works during the fourth quarter valued at approximately $31,000. Activest Wealth Management bought a new position in Bath & Body Works in the fourth quarter worth $32,000. Geneos Wealth Management Inc. boosted its stake in Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company's stock worth $35,000 after buying an additional 801 shares in the last quarter. Parallel Advisors LLC boosted its stake in Bath & Body Works by 42.6% during the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company's stock worth $38,000 after buying an additional 567 shares in the last quarter. Finally, Danske Bank A S bought a new stake in Bath & Body Works in the 3rd quarter valued at $39,000. Institutional investors own 95.14% of the company's stock.

Bath & Body Works Trading Up 17.4%

The stock has a market cap of $4.19 billion, a P/E ratio of 6.58, a price-to-earnings-growth ratio of 1.77 and a beta of 1.43. The company's fifty day simple moving average is $18.67 and its 200-day simple moving average is $20.26.

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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