Bath & Body Works (NYSE:BBWI) Shares Up 8.5% - What's Next?

Key Points

• Bath & Body Works shares jumped 8.5% intraday to about $19.58 on Friday, though trading volume (~878,984 shares) was roughly 84% below its average daily volume.
• The company beat estimates with Q results of $2.05 EPS (vs. $1.77 expected) and $2.72B revenue (vs. $2.59B), and issued Q1 2026 EPS guidance of 0.240–0.300 and FY 2026 guidance of 2.400–2.650.
• Analysts' consensus is a Hold with an average target of $23; the stock trades at a P/E of 6.22 and pays a $0.20 quarterly dividend (annual yield ~4.1%).

Bath & Body Works, Inc. (NYSE:BBWI - Get Free Report)'s share price rose 8.5% during mid-day trading on Friday . The stock traded as high as $19.80 and last traded at $19.5790. Approximately 878,984 shares changed hands during trading, a decline of 84% from the average daily volume of 5,464,712 shares. The stock had previously closed at $18.04.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on BBWI. Telsey Advisory Group boosted their target price on Bath & Body Works from $23.00 to $25.00 and gave the stock a "market perform" rating in a research report on Thursday, March 5th. Jefferies Financial Group initiated coverage on Bath & Body Works in a research report on Wednesday, January 14th. They set a "hold" rating and a $24.00 target price on the stock. Citigroup downgraded Bath & Body Works from a "buy" rating to a "neutral" rating and raised their price target for the stock from $21.00 to $25.00 in a research report on Tuesday, February 17th. Zacks Research upgraded shares of Bath & Body Works from a "strong sell" rating to a "hold" rating in a research report on Tuesday, January 20th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of Bath & Body Works from $21.00 to $22.00 and gave the company a "hold" rating in a research note on Tuesday, March 3rd. Three equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to data from MarketBeat, Bath & Body Works presently has an average rating of "Hold" and a consensus target price of $23.00.

Bath & Body Works Price Performance

The firm has a market capitalization of $3.94 billion, a P/E ratio of 6.22, a P/E/G ratio of 1.79 and a beta of 1.50. The firm has a 50-day moving average price of $20.63 and a two-hundred day moving average price of $21.58.

Bath & Body Works (NYSE:BBWI - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The company reported $2.05 EPS for the quarter, topping the consensus estimate of $1.77 by $0.28. The company had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.59 billion. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.Bath & Body Works's quarterly revenue was down 2.3% on a year-over-year basis. During the same period last year, the business posted $2.09 EPS. 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. Sell-side analysts predict that Bath & Body Works, Inc. will post 3.3 earnings per share for the current fiscal year.

Bath & Body Works Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, March 6th. Stockholders of record on Friday, February 20th were issued a $0.20 dividend. The ex-dividend date was Friday, February 20th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 4.1%. Bath & Body Works's dividend payout ratio (DPR) is currently 25.40%.

Institutional Investors Weigh In On Bath & Body Works

A number of institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its holdings in shares of Bath & Body Works by 92.8% in the 1st quarter. Royal Bank of Canada now owns 59,877 shares of the company's stock valued at $1,815,000 after buying an additional 28,815 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Bath & Body Works by 15.7% during the first quarter. Goldman Sachs Group Inc. now owns 645,970 shares of the company's stock valued at $19,586,000 after acquiring an additional 87,529 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Bath & Body Works by 7.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 562,757 shares of the company's stock valued at $17,063,000 after acquiring an additional 36,684 shares in the last quarter. Intech Investment Management LLC purchased a new position in Bath & Body Works in the first quarter worth $1,155,000. Finally, Geneos Wealth Management Inc. increased its position in shares of 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 purchasing an additional 801 shares in the last quarter. Institutional investors own 95.14% of the company's stock.

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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