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

Bath & Body Works (NYSE:BBWI) issued its quarterly earnings results on Wednesday. The company reported $2.05 EPS for the quarter, beating analysts’ consensus estimates of $1.77 by $0.28, FiscalAI reports. The company had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.59 billion. Bath & Body Works had a negative return on equity of 47.35% and a net margin of 9.50%.The company’s quarterly revenue was down 2.3% compared to the same quarter last year. During the same period in the previous year, the company posted $2.09 earnings per share. Bath & Body Works updated its Q1 2026 guidance to 0.240-0.300 EPS and its FY 2026 guidance to 2.400-2.650 EPS.

Here are the key takeaways from Bath & Body Works’ conference call:

• Bath & Body Works reported a better-than-expected Q4 with net sales down ~2.3% but adjusted EPS of $2.05 that exceeded expectations, signaling resilience versus the company’s prior guidance floor.
• Management frames 2026 as an “investment year” and expects full-year net sales down ~4.5% to 2.5% with gross-profit pressure (?130 bps headwind) and adjusted EPS guidance of $2.40–$2.65, plus a Q1 comp headwind (net sales down 6%–4%).
• The new multi-year “Consumer First Formula” centers on product innovation (early success with a new moisturizing hand soap) and a refreshed brand/labeling strategy that management expects will drive renewed consumer acquisition and pricing power as new launches roll out in H2 2026 and into 2027.
• The company launched on Amazon (Feb 20) and is expanding international distribution—management expects ~$50M of growth from expanded distribution and sees international nearing $1B in retail sales, both positioned to broaden reach and new-to-brand acquisition.
• Management targets $250M of Fuel for Growth savings over two years (?$175M in 2026) to fund innovation and digital investment, while planning ~$270M capex, ~$600M free cash flow for 2026 and no share repurchases assumed in the outlook.

Bath & Body Works Stock Up 1.9%

Shares of NYSE BBWI traded up $0.43 during midday trading on Wednesday, hitting $22.86. 3,359,353 shares of the company’s stock were exchanged, compared to its average volume of 4,993,784. The firm has a market capitalization of $4.68 billion, a PE ratio of 7.03, a price-to-earnings-growth ratio of 0.97 and a beta of 1.48. Bath & Body Works has a 12 month low of $14.27 and a 12 month high of $35.21. The company’s 50 day moving average price is $22.25 and its 200 day moving average price is $23.59.

Bath & Body Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Stockholders of record on Friday, February 20th will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, February 20th. Bath & Body Works’s dividend payout ratio (DPR) is presently 24.62%.

Hedge Funds Weigh In On Bath & Body Works

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC lifted its stake in shares of Bath & Body Works by 42.6% during the 4th quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock worth $38,000 after buying an additional 567 shares during the last quarter. Meeder Asset Management Inc. raised its holdings in Bath & Body Works by 28.5% in the 4th quarter. Meeder Asset Management Inc. now owns 2,874 shares of the company’s stock valued at $58,000 after acquiring an additional 637 shares during the period. State of Wyoming raised its stake in Bath & Body Works by 6.2% in the 2nd quarter. State of Wyoming now owns 11,294 shares of the company’s stock worth $338,000 after purchasing an additional 661 shares in the last quarter. Vident Advisory LLC boosted its holdings in Bath & Body Works by 2.8% in the 2nd quarter. Vident Advisory LLC now owns 25,229 shares of the company’s stock valued at $756,000 after purchasing an additional 692 shares during the period. Finally, Geneos Wealth Management Inc. grew its position in shares of Bath & Body Works by 217.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 1,169 shares of the company’s stock worth $35,000 after purchasing an additional 801 shares in the last quarter. 95.14% of the stock is owned by institutional investors.

Bath & Body Works News Roundup

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

• Positive Sentiment: Q4 results beat expectations — Bath & Body Works reported adjusted EPS of $2.05 and revenue of $2.72B, both topping street estimates, which drove an early positive reaction in premarket trading. Stronger-than-expected quarterly execution supports near-term earnings visibility. Bath & Body Works (BBWI) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management says strategic pivot is progressing — the company highlighted progress on its “Consumer First” formula (innovation, brand elevation, marketplace expansion), which investors may view as constructive for medium?term margin and category focus. Company Press Release
• Neutral Sentiment: Analyst price target moves — Deutsche Bank and Barclays nudged price targets/rating levels (small adjustments, both maintain non?buy stances), which suggests analysts are cautious despite the beat. Deutsche Bank Adjusts PT
• Neutral Sentiment: Earnings and slide materials available — company posted its press release and slide deck; useful for investors wanting detail on comps, margin drivers and channel performance. Slide Deck / Press Release
• Negative Sentiment: Guidance disappointed — FY2026 EPS guidance of $2.40–2.65 and Q1 guidance of $0.24–0.30 are below consensus (FY and Q1), reducing near?term upside and tempering the positive surprise from the quarter. Guidance and Results
• Negative Sentiment: Company forecasts steeper annual sales decline — management flagged weaker demand for higher?priced fragrance and candle items as consumers pull back, a drag on top?line recovery. Reuters: Forecasts Steeper Sales Decline
• Negative Sentiment: Multiple securities?class action notices — several law firms have filed or notified investors of class actions covering mid?2024 to late?2025 periods, creating potential legal overhang and headline risk. Deadlines for lead?plaintiff motions are imminent. Levi & Korsinsky Notice
• Negative Sentiment: Institutional selling noted — a large stake was liquidated last quarter (Cooper Creek), which reduced an institutional position by roughly $129M and can add downward pressure on shares. Fool: Stake Liquidated

Analysts Set New Price Targets

Several brokerages have recently weighed in on BBWI. JPMorgan Chase & Co. decreased their price target on shares of Bath & Body Works from $26.00 to $15.00 and set a “neutral” rating for the company in a research note on Thursday, November 20th. UBS Group raised their target price on shares of Bath & Body Works from $21.00 to $22.00 and gave the company a “neutral” rating in a research report on Monday, February 23rd. Jefferies Financial Group initiated coverage on shares of Bath & Body Works in a research report on Wednesday, January 14th. They set a “hold” rating and a $24.00 price target on the stock. Barclays raised their price objective on Bath & Body Works from $20.00 to $21.00 and gave the company an “equal weight” rating in a report on Monday. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $18.00 target price (down from $43.00) on shares of Bath & Body Works in a report on Friday, November 21st. Three analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. According to data from MarketBeat.com, Bath & Body Works presently has a consensus rating of “Hold” and a consensus price target of $23.86.

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.