Bank of New York Mellon Corp Acquires New Stake in Bath & Body Works, Inc. $BBWI

Key Points

• Bank of New York Mellon acquired 2.56 million Bath & Body Works shares worth approximately $59.3 million, giving it a 1.27% stake. Institutional investors and hedge funds collectively own 95.14% of the company.
• Bath & Body Works beat second-quarter earnings expectations, reporting adjusted EPS of $0.62 versus the $0.24 consensus and revenue of $1.51 billion, although sales declined 2.3% year over year.
• Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80 and maintained its revenue outlook, while declaring a quarterly dividend of $0.20 per share, representing a 4.2% annualized yield. Near-term risks include weak store traffic and below-consensus third-quarter EPS guidance of $0.07-$0.12.

Bank of New York Mellon Corp acquired a new position in shares of Bath & Body Works, Inc. (NYSE:BBWI - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 2,562,026 shares of the company's stock, valued at approximately $59,260,000. Bank of New York Mellon Corp owned approximately 1.27% of Bath & Body Works at the end of the most recent quarter.

Other hedge funds also recently modified their holdings of the company. Focus Partners Advisor Solutions LLC acquired a new position in shares of Bath & Body Works in the second quarter valued at approximately $572,000. State of Wyoming purchased a new position in Bath & Body Works in the second quarter valued at approximately $490,000. GSA Capital Partners LLP purchased a new stake in Bath & Body Works during the 2nd quarter worth $476,000. Oppenheimer Asset Management Inc. acquired a new stake in shares of Bath & Body Works in the second quarter valued at about $1,363,000. Finally, Handelsbanken Fonder AB raised its stake in shares of Bath & Body Works by 31.3% during the second quarter. Handelsbanken Fonder AB now owns 88,149 shares of the company's stock valued at $2,039,000 after purchasing an additional 21,000 shares during the period. 95.14% of the stock is owned by institutional investors and hedge funds.

Bath & Body Works Stock Performance

Shares of BBWI opened at $18.92 on Thursday. Bath & Body Works, Inc. has a one year low of $14.27 and a one year high of $32.32. The stock's fifty day moving average is $20.36 and its 200-day moving average is $20.01. The firm has a market capitalization of $3.81 billion, a price-to-earnings ratio of 5.31, a price-to-earnings-growth ratio of 1.73 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.38. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The company had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.50 billion. During the same period last year, the firm earned $0.30 EPS. The firm's revenue for the quarter was down 2.3% on a year-over-year basis. Bath & Body Works has set its Q3 2026 guidance at 0.070-0.120 EPS and its FY 2026 guidance at 2.600-2.800 EPS. Analysts forecast that Bath & Body Works, Inc. will post 2.63 EPS for the current fiscal year.

Bath & Body Works Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Shareholders of record on Friday, August 21st will be paid a $0.20 dividend. The ex-dividend date is Friday, August 21st. This represents a $0.80 dividend on an annualized basis and a yield of 4.2%. Bath & Body Works's payout ratio is 22.47%.

More Bath & Body Works News

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

• Positive Sentiment: Bath & Body Works reported second-quarter adjusted EPS of $0.62, well above the $0.24 analyst consensus, while revenue of $1.51 billion slightly exceeded expectations. Bath & Body Works Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80, above its previous range of $2.40-$2.65 and ahead of the roughly $2.56 consensus. The company also reiterated revenue expectations of approximately $7.5-$7.6 billion. Bath & Body Works Raises Earnings Outlook on Higher Profit
• Positive Sentiment: Digital demand and direct-channel sales growth are offsetting weaker physical-store traffic. Management also highlighted ongoing transformation initiatives, including planned cost savings, stronger cash flow and potential balance-sheet improvement that could support future shareholder returns. Bath & Body Works lifts annual profit forecast
• Neutral Sentiment: The earnings call and bullish commentary frame BBWI as a discounted turnaround opportunity, but investors will likely require sustained sales growth and execution before assigning a higher valuation.
• Negative Sentiment: Second-quarter net sales declined 2.3% year over year, and third-quarter adjusted EPS guidance of only $0.07-$0.12 is substantially below the approximately $0.27 consensus. The outlook reflects continued near-term pressure from store traffic and seasonality. Bath & Body Works falls despite earnings beat
• Negative Sentiment: Heavy put-option activity ahead of the report signaled elevated bearish hedging and helps explain the stock’s volatility despite the earnings beat.

Analysts Set New Price Targets

BBWI has been the subject of several research analyst reports. Weiss Ratings raised shares of Bath & Body Works from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, July 9th. Morgan Stanley reiterated an "equal weight" rating and issued a $22.00 price target on shares of Bath & Body Works in a report on Monday, July 6th. UBS Group reissued a "neutral" rating on shares of Bath & Body Works in a research report on Wednesday, August 19th. Barclays reduced their price objective on Bath & Body Works from $25.00 to $23.00 and set an "equal weight" rating on the stock in a research note on Thursday, May 28th. Finally, TD Cowen lifted their price objective on shares of Bath & Body Works from $20.00 to $25.00 and gave the stock a "buy" rating in a report on Thursday, May 28th. Four investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Bath & Body Works has an average rating of "Hold" and a consensus target price of $22.57.

Bath & Body Works 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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