Bath & Body Works (NYSE:BBWI) Releases FY 2026 Earnings Guidance

Key Points

• Bath & Body Works raised FY 2026 guidance to EPS of $2.60–$2.80 and revenue of $7.5–$7.6 billion, above consensus estimates of $2.56 EPS and $7.0 billion revenue. Q3 2026 EPS guidance was set at $0.07–$0.12.
• Analysts remain cautious, with a consensus “Hold” rating and average price target of $22.57; recent targets range from $20 to $26.
• The company declared a quarterly dividend of $0.20 per share, equivalent to $0.80 annually and a 4.6% yield. Institutional investors own approximately 95.14% of the stock.

Bath & Body Works (NYSE:BBWI - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 2.600-2.800 for the period, compared to the consensus estimate of 2.560. The company issued revenue guidance of $7.5 billion-$7.6 billion, compared to the consensus revenue estimate of $7.0 billion. Bath & Body Works also updated its Q3 2026 guidance to 0.070-0.120 EPS.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Piper Sandler assumed coverage on Bath & Body Works in a research note on Friday, May 15th. They issued a "neutral" rating and a $20.00 target price for the company. Wells Fargo & Company boosted their price objective on Bath & Body Works from $25.00 to $26.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Telsey Advisory Group dropped their target price on shares of Bath & Body Works from $25.00 to $22.00 and set a "market perform" rating on the stock in a report on Thursday, May 28th. Citigroup raised shares of Bath & Body Works from a "neutral" rating to a "buy" rating and set a $25.00 price target on the stock in a research note on Tuesday, August 18th. Finally, Raymond James Financial reiterated a "market perform" rating on shares of Bath & Body Works in a report on Wednesday, May 27th. Four equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $22.57.

Bath & Body Works Stock Performance

NYSE BBWI opened at $17.58 on Wednesday. Bath & Body Works has a 52 week low of $14.27 and a 52 week high of $32.32. The stock's 50 day moving average price is $20.39 and its two-hundred day moving average price is $20.03. The stock has a market capitalization of $3.54 billion, a price-to-earnings ratio of 4.94, a PEG ratio of 1.89 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.29 by $0.03. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The company had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.36 billion. During the same period last year, the business earned $0.49 EPS. The business's quarterly revenue was down 3.2% on a year-over-year basis. On average, equities research analysts forecast that Bath & Body Works will post 2.63 EPS for the current year.

Bath & Body Works Announces Dividend

The firm also recently declared 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. This represents a $0.80 annualized dividend and a yield of 4.6%. The ex-dividend date is Friday, August 21st. Bath & Body Works's payout ratio is presently 22.47%.

Institutional Trading of Bath & Body Works

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC raised its holdings in Bath & Body Works by 132.5% during the fourth quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company's stock worth $229,834,000 after acquiring an additional 6,523,960 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in Bath & Body Works during the fourth quarter valued at approximately $54,785,000. Bank of America Corp DE grew its stake in Bath & Body Works by 86.9% in the third quarter. Bank of America Corp DE now owns 3,399,390 shares of the company's stock valued at $87,568,000 after purchasing an additional 1,580,176 shares in the last quarter. Two Sigma Investments LP grew its stake in Bath & Body Works by 1,004.1% in the third quarter. Two Sigma Investments LP now owns 1,443,312 shares of the company's stock valued at $37,180,000 after purchasing an additional 1,312,586 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in shares of Bath & Body Works during the 3rd quarter worth approximately $31,942,000. Institutional investors and hedge funds 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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