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

Bath & Body Works (NYSE:BBWI) updated 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 earnings per share 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.

Bath & Body Works Stock Performance

Shares of NYSE BBWI opened at $17.58 on Wednesday. The firm’s 50 day moving average price is $20.39 and its 200-day moving average price is $20.03. Bath & Body Works has a 52-week low of $14.27 and a 52-week 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.

Bath & Body Works (NYSE:BBWI) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.38. Bath & Body Works had a net margin of 10.03% and a negative return on equity of 45.34%. The company had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.50 billion. 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. On average, analysts forecast that Bath & Body Works will post 2.63 earnings per share for the current fiscal year.

Bath & Body Works Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on BBWI. Citigroup upgraded Bath & Body Works from a “neutral” rating to a “buy” rating and set a $25.00 price target for the company in a research note on Tuesday, August 18th. The Goldman Sachs Group cut Bath & Body Works from a “neutral” rating to a “sell” rating and dropped their price objective for the company from $23.00 to $19.00 in a research report on Wednesday, July 8th. Piper Sandler initiated coverage on Bath & Body Works in a report on Friday, May 15th. They issued a “neutral” rating and a $20.00 price objective for the company. Raymond James Financial reissued a “market perform” rating on shares of Bath & Body Works in a research report on Wednesday, May 27th. Finally, JPMorgan Chase & Co. upped their target price on shares of Bath & Body Works from $22.00 to $24.00 and gave the company a “neutral” rating in a research note on Tuesday, August 18th. Four analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $22.57.

Trending Headlines about 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.

Institutional Trading of Bath & Body Works

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Global Retirement Partners LLC bought a new stake in Bath & Body Works during the 4th quarter worth approximately $31,000. Geneos Wealth Management Inc. lifted its holdings in Bath & Body Works by 217.7% during the first quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock valued at $35,000 after purchasing an additional 801 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of Bath & Body Works by 42.6% in the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock worth $38,000 after purchasing an additional 567 shares during the period. Danske Bank A S purchased a new stake in shares of Bath & Body Works in the third quarter worth $39,000. Finally, Advisory Services Network LLC purchased a new stake in shares of Bath & Body Works in the third quarter worth $48,000. Hedge funds and other 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.