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

Bath & Body Works (NYSE:BBWI) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 2.400-2.650 for the period, compared to the consensus estimate of 2.560. The company issued revenue guidance of $7.0 billion-$7.1 billion, compared to the consensus revenue estimate of $7.0 billion. Bath & Body Works also updated its Q2 2026 guidance to 0.300-0.300 EPS.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. The Goldman Sachs Group decreased their price target on shares of Bath & Body Works from $26.00 to $23.00 and set a “neutral” rating on the stock in a research note on Thursday. Piper Sandler assumed coverage on shares of Bath & Body Works in a research note on Friday, May 15th. They issued a “neutral” rating and a $20.00 price target on the stock. Deutsche Bank Aktiengesellschaft upped their price target 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. Citigroup lowered shares of Bath & Body Works from a “buy” rating to a “neutral” rating and upped their price target for the company from $21.00 to $25.00 in a research note on Tuesday, February 17th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Bath & Body Works in a research note on Monday, April 20th. Three equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the stock. According to MarketBeat.com, Bath & Body Works presently has an average rating of “Hold” and an average price target of $21.93.

Bath & Body Works Stock Performance

Shares of NYSE:BBWI opened at $20.33 on Friday. The company has a fifty day moving average of $18.65 and a 200-day moving average of $20.22. The company has a market capitalization of $4.09 billion, a PE ratio of 5.71, a price-to-earnings-growth ratio of 1.97 and a beta of 1.43. Bath & Body Works has a 52-week low of $14.27 and a 52-week high of $33.96.

Bath & Body Works (NYSE:BBWI) last announced its quarterly earnings results on Wednesday, May 27th. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.03. The company had revenue of $1.38 billion during the quarter, compared to the consensus estimate of $1.36 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The company’s revenue for the quarter was down 3.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.49 earnings per share. 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. On average, equities analysts forecast that Bath & Body Works will post 2.56 EPS for the current fiscal year.

Bath & Body Works Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 19th. Stockholders of record on Friday, June 5th will be issued a dividend of $0.20 per share. The ex-dividend date is Friday, June 5th. This represents a $0.80 annualized dividend and a dividend yield of 3.9%. Bath & Body Works’s dividend payout ratio is 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 Q1 expectations, reporting adjusted EPS of $0.32 versus $0.29 expected and revenue of $1.38 billion versus $1.36 billion expected, while reaffirming its full-year outlook. The results eased fears about the turnaround and helped drive the stock higher. Article: Reuters – Bath & Body Works beats quarterly estimates on strong demand for ‘affordable luxury’
• Positive Sentiment: Management said its “Consumer First Formula” is gaining traction and suggested momentum could improve through 2026 and 2027, supporting investor optimism about a longer-term recovery. Article: Zacks – BBWI Stock Jumps 10% on Q1 Earnings Beat & Growth Strategy Optimism
• Positive Sentiment: TD Cowen raised its price target on BBWI to $25 from $20 and kept a buy rating, signaling more upside potential from current levels. Article: Benzinga – TD Cowen price target update
• Positive Sentiment: Wells Fargo also maintained an overweight rating and lowered its target only slightly to $25 from $29, which still implies meaningful upside. Article: Benzinga – Wells Fargo price target update
• Neutral Sentiment: Other firms trimmed targets as well, including Telsey Advisory Group to $22 and Goldman Sachs to $23, reflecting a more cautious view on the pace of the turnaround. Article: Benzinga – Analyst target revisions
• Neutral Sentiment: Brokerage consensus remains around Hold, suggesting analysts see improvement but not yet a clear, sustained growth story. Article: American Banking News – Consensus Recommendation of Hold
• Negative Sentiment: Revenue still fell 3.2% from a year ago, underscoring that Bath & Body Works is still working through a challenging turnaround and hasn’t returned to top-line growth yet. Article: WSJ – Bath & Body Works Sales Fall Amid Turnaround Efforts

Hedge Funds Weigh In On Bath & Body Works

Large investors have recently added to or reduced their stakes in the business. Invesco Ltd. boosted its holdings in Bath & Body Works by 43.6% during the fourth quarter. Invesco Ltd. now owns 652,991 shares of the company’s stock worth $13,112,000 after purchasing an additional 198,324 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in Bath & Body Works by 475.8% during the fourth quarter. Corient Private Wealth LLC now owns 97,202 shares of the company’s stock worth $1,952,000 after purchasing an additional 80,322 shares during the last quarter. Alberta Investment Management Corp purchased a new position in Bath & Body Works during the fourth quarter worth about $1,135,000. Mercer Global Advisors Inc. ADV boosted its holdings in Bath & Body Works by 39.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 161,935 shares of the company’s stock worth $3,252,000 after purchasing an additional 45,713 shares during the last quarter. Finally, XTX Topco Ltd boosted its holdings in Bath & Body Works by 65.2% during the fourth quarter. XTX Topco Ltd now owns 80,548 shares of the company’s stock worth $1,617,000 after purchasing an additional 31,781 shares during the last quarter. Institutional investors own 95.14% of the company’s stock.

About Bath & Body Works

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.