Bath & Body Works (NYSE:BBWI) Shares Down 8% – What’s Next?

Shares of Bath & Body Works, Inc. (NYSE:BBWI) were down 8% on Friday . The company traded as low as $20.47 and last traded at $20.51. Approximately 1,083,412 shares were traded during trading, a decline of 79% from the average daily volume of 5,124,963 shares. The stock had previously closed at $22.29.

Trending Headlines about Bath & Body Works

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

• Positive Sentiment: Q4 beat and growth plan — Bath & Body Works posted Q4 EPS of $2.05 vs. $1.77 expected and revenue above consensus; management rolled out its “Consumer First” strategy aimed at stabilizing growth. This supports near‑term fundamentals and prompted some analyst upgrades. Zacks: BBWI beats on Q4
• Positive Sentiment: Analysts lift forecasts and price targets — Several shops raised estimates/targets after results (Telsey raised its target to $25 with a market‑perform rating; Deutsche Bank and others nudged targets higher), signaling some confidence in the recovery trajectory. Benzinga: Analysts raise forecasts
• Neutral Sentiment: Mixed broker views — Barclays reaffirmed a “hold” on BBWI (neutral stance) even as some firms raised targets, leaving consensus sentiment cautious rather than outright bullish. Globe and Mail: Barclays hold
• Neutral Sentiment: Execution still in progress — Management says the strategy shift is making progress but “will take time,” so investors face a runway of execution risk before material improvement in top‑line trends. MSN: Strategy shift progress
• Negative Sentiment: Numerous securities‑fraud class actions and plaintiff‑firm solicitations — Multiple law firms (Schall, Rosen, Pomerantz, DJS, Bragar Eagel & Squire, Bernstein Liebhard, Bronstein, etc.) have filed or are soliciting lead plaintiffs for alleged misstatements covering June 4, 2024–Nov 19, 2025, with upcoming lead‑plaintiff deadlines. The proliferation of filings increases legal risk, potential future costs, and near‑term investor anxiety. PR Newswire: Schall Law Firm notice
• Negative Sentiment: Broad litigation reminders compound selling pressure — Additional prominent firms are actively recruiting claimants and noting short deadlines, keeping the litigation story front‑and‑center for investors and likely weighing on sentiment until resolved. GlobeNewswire: Rosen Law Firm deadline

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on BBWI shares. Robert W. Baird set a $20.00 price objective on shares of Bath & Body Works in a research report on Wednesday, December 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 report on Monday. The Goldman Sachs Group lowered shares of Bath & Body Works from a “buy” rating to a “neutral” rating and decreased their price target for the company from $39.00 to $17.00 in a research report on Thursday, November 20th. Bank of America set a $26.00 price target on shares of Bath & Body Works in a report on Monday, November 24th. Finally, JPMorgan Chase & Co. cut their price target on shares of Bath & Body Works from $26.00 to $15.00 and set a “neutral” rating on the stock in a research note on Thursday, November 20th. Three investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $24.00.

Bath & Body Works Stock Down 7.0%

The company has a market capitalization of $4.25 billion, a price-to-earnings ratio of 6.58, a P/E/G ratio of 0.97 and a beta of 1.48. The business’s 50-day moving average is $22.37 and its 200-day moving average is $23.58.

Bath & Body Works (NYSE:BBWI) 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. Bath & Body Works had a negative return on equity of 45.60% and a net margin of 8.90%.The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.59 billion. During the same quarter in the prior year, the firm posted $2.09 EPS. The business’s quarterly 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. As a group, analysts expect that Bath & Body Works, Inc. will post 3.3 EPS for the current year.

Bath & Body Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Friday, February 20th will be paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a dividend yield of 3.9%. The ex-dividend date of this dividend is Friday, February 20th. Bath & Body Works’s dividend payout ratio is presently 25.40%.

Hedge Funds Weigh In On Bath & Body Works

A number of large investors have recently bought and sold shares of the business. AQR Capital Management LLC grew its holdings in Bath & Body Works by 132.5% in the fourth 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. JPMorgan Chase & Co. lifted its position in shares of Bath & Body Works by 11.5% during the 2nd quarter. JPMorgan Chase & Co. now owns 7,080,106 shares of the company’s stock valued at $212,120,000 after buying an additional 733,000 shares in the last quarter. Alliancebernstein L.P. grew its stake in Bath & Body Works by 2.2% in the 3rd quarter. Alliancebernstein L.P. now owns 5,861,444 shares of the company’s stock valued at $150,991,000 after acquiring an additional 123,648 shares during the period. Cooper Creek Partners Management LLC increased its holdings in Bath & Body Works by 42.7% in the 2nd quarter. Cooper Creek Partners Management LLC now owns 5,409,919 shares of the company’s stock worth $162,081,000 after acquiring an additional 1,619,276 shares in the last quarter. Finally, American Century Companies Inc. raised its position in Bath & Body Works by 2,204.1% during the third quarter. American Century Companies Inc. now owns 5,174,370 shares of the company’s stock worth $133,292,000 after acquiring an additional 4,949,796 shares during the period. 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.