Bath & Body Works (NYSE:BBWI) Announces Quarterly Earnings Results

Bath & Body Works (NYSE:BBWI) announced its earnings results on Wednesday. The company reported $0.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38, FiscalAI reports. The firm had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.50 billion. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. Bath & Body Works updated its Q3 2026 guidance to 0.070-0.120 EPS and its FY 2026 guidance to 2.600-2.800 EPS.

Bath & Body Works Price Performance

NYSE:BBWI opened at $17.58 on Wednesday. Bath & Body Works has a one year low of $14.27 and a one year high of $32.32. The company has a market cap of $3.54 billion, a PE ratio of 4.94, a P/E/G ratio of 1.89 and a beta of 1.38. The firm’s 50 day simple moving average is $20.39 and its 200 day simple moving average is $20.03.

Bath & Body Works Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be given a dividend of $0.20 per share. The ex-dividend date is Friday, August 21st. This represents a $0.80 annualized dividend and a yield of 4.6%. Bath & Body Works’s dividend payout ratio (DPR) is currently 22.47%.

Key Headlines Impacting Bath & Body Works

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

• Positive Sentiment: Second-quarter results exceeded expectations. Net sales were approximately $1.5 billion, while adjusted diluted EPS was $0.62, topping the $0.24 analyst consensus. The company said results exceeded its guidance, supported by demand for body-care products and home fragrances. Bath & Body Works Reports Second Quarter Results Exceeding Guidance
• Positive Sentiment: Full-year adjusted earnings guidance was raised. Bath & Body Works now expects adjusted EPS of $2.60 to $2.80, above the roughly $2.56 consensus estimate. Revenue guidance was set at $7.5 billion to $7.6 billion, also above the $7.0 billion consensus, while the company narrowed its expected annual sales decline to 2%–4%. Bath & Body Works lifts annual profit forecast
• Positive Sentiment: Digital and direct-channel demand is improving. Direct net sales grew as the company enhanced its digital shopping experience, helping offset weaker traffic in physical stores and supporting management’s transformation strategy.
• Neutral Sentiment: Analysts had revised expectations ahead of the report, and options markets indicated the potential for a sizable post-earnings move. This points to elevated volatility rather than a clear fundamental signal. Analysts revise forecasts ahead of earnings
• Negative Sentiment: Third-quarter guidance is well below consensus. The company forecast adjusted EPS of only $0.07 to $0.12 versus the $0.27 analyst estimate, although revenue guidance of $1.6 billion to $1.7 billion roughly matches expectations. The weak near-term profit outlook is likely the main reason investors are selling the stock.
• Negative Sentiment: Second-quarter sales fell 2.3%, and weak store traffic remains a concern. In addition, traders purchased 23,399 put options—about 550% above average daily volume—signaling increased bearish hedging or speculation ahead of the results.

Wall Street Analyst Weigh In

Several brokerages have weighed in on BBWI. Morgan Stanley reaffirmed an “equal weight” rating and issued a $22.00 price objective on shares of Bath & Body Works in a report on Monday, July 6th. Citigroup upgraded 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 report on Tuesday, August 18th. 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 objective on the stock. UBS Group restated a “neutral” rating on shares of Bath & Body Works in a research note on Wednesday, August 19th. Finally, Weiss Ratings raised Bath & Body Works from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Thursday, July 9th. Four investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $22.57.

Institutional Trading of Bath & Body Works

Institutional investors have recently modified their holdings of the business. AQR Capital Management LLC increased 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. Balyasny Asset Management L.P. bought a new stake in shares of Bath & Body Works in the 4th quarter valued at about $54,785,000. Bank of America Corp DE grew its position in shares of Bath & Body Works by 86.9% in the 3rd quarter. Bank of America Corp DE now owns 3,399,390 shares of the company’s stock valued at $87,568,000 after buying an additional 1,580,176 shares during the last quarter. Two Sigma Investments LP grew its position in shares of Bath & Body Works by 1,004.1% in the 3rd quarter. Two Sigma Investments LP now owns 1,443,312 shares of the company’s stock valued at $37,180,000 after buying an additional 1,312,586 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Bath & Body Works in the third quarter valued at about $31,942,000. 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.