Bath & Body Works (NYSE:BBWI) Updates Q1 2026 Earnings Guidance

Bath & Body Works (NYSE:BBWI) updated its first quarter 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 0.240-0.300 for the period, compared to the consensus earnings per share estimate of 1.170. The company issued revenue guidance of -. Bath & Body Works also updated its FY 2026 guidance to 2.400-2.650 EPS.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. The Goldman Sachs Group downgraded shares of Bath & Body Works from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $39.00 to $17.00 in a research report on Thursday, November 20th. Citigroup downgraded shares of Bath & Body Works from a “buy” rating to a “neutral” rating and increased their price objective for the company from $21.00 to $25.00 in a research note on Tuesday, February 17th. JPMorgan Chase & Co. cut their target price 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. UBS Group increased their price target on shares of Bath & Body Works from $21.00 to $22.00 and gave the stock a “neutral” rating in a research report on Monday, February 23rd. Finally, Morgan Stanley reiterated an “equal weight” rating and issued a $18.00 price target (down from $43.00) on shares of Bath & Body Works in a research note on Friday, November 21st. Three research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $24.00.

Bath & Body Works Stock Performance

Shares of BBWI opened at $22.27 on Friday. Bath & Body Works has a one year low of $14.27 and a one year high of $35.21. The stock’s fifty day moving average is $22.37 and its 200-day moving average is $23.58. The firm has a market capitalization of $4.56 billion, a price-to-earnings ratio of 7.07, a price-to-earnings-growth ratio of 0.97 and a beta of 1.48.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings data on Wednesday, March 4th. The company reported $2.05 EPS for the quarter, beating analysts’ consensus estimates of $1.77 by $0.28. Bath & Body Works had a net margin of 8.90% and a negative return on equity of 45.60%. The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.59 billion. During the same quarter last year, the business earned $2.09 earnings per share. The business’s revenue for the quarter was down 2.3% on a year-over-year basis. 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. Analysts forecast that Bath & Body Works will post 3.3 EPS for the current fiscal 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 given a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Friday, February 20th. Bath & Body Works’s dividend payout ratio (DPR) is 25.40%.

Bath & Body Works News Summary

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

• Positive Sentiment: Q4 beat — BBWI reported Q4 EPS of $2.05 vs. $1.77 consensus and revenue of $2.72B vs. $2.59B, which pushed shares higher as investors rewarded the upside and management highlighted progress on its “Consumer First” strategy. Read More.
• Positive Sentiment: Analysts lift forecasts and price targets — multiple shops raised estimates and outlooks after the print; Telsey raised its price target to $25 (market perform), supporting near?term upside. Read More.
• Neutral Sentiment: Research stance mixed — some firms (e.g., Barclays) kept non?bullish/hold ratings despite the beat, indicating cautious sentiment among parts of the sell?side. Read More.
• Neutral Sentiment: Minor price target tweaks — a few banks nudged targets modestly higher (Deutsche Bank/others), but changes are incremental relative to the stock’s volatility. Read More.
• Negative Sentiment: Weaker forward guidance — management set FY?2026 EPS of $2.40–$2.65 (below the ~2.74 consensus) and Q1 EPS guidance of $0.24–$0.30 (well under street expectations), which undercuts the positive Q4 print and pressures forward valuation. Read More.
• Negative Sentiment: Soft sales outlook — the company warned of a steeper annual sales decline as customers pare back discretionary spending on premium scented products, signaling demand risks for the coming year. Read More.
• Negative Sentiment: Legal overhang — multiple law firms have filed or announced investigations into potential securities claims covering purchases between June 4, 2024 and Nov 19, 2025 and are soliciting lead plaintiffs ahead of deadlines in mid?March; this increases uncertainty and could be a near?term drag. Read More.

Institutional Trading of Bath & Body Works

Several large investors have recently added to or reduced their stakes in BBWI. AQR Capital Management LLC grew its stake in shares of Bath & Body Works by 132.5% in the 4th quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock valued at $229,834,000 after buying an additional 6,523,960 shares in the last quarter. Balyasny Asset Management L.P. bought a new stake in Bath & Body Works in the fourth quarter worth approximately $54,785,000. Bank of America Corp DE increased its stake in shares of Bath & Body Works by 86.9% during the 3rd quarter. Bank of America Corp DE now owns 3,399,390 shares of the company’s stock worth $87,568,000 after purchasing an additional 1,580,176 shares during the last quarter. Two Sigma Investments LP increased its stake in shares of Bath & Body Works by 1,004.1% during the 3rd quarter. Two Sigma Investments LP now owns 1,443,312 shares of the company’s stock worth $37,180,000 after purchasing an additional 1,312,586 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of Bath & Body Works during the 3rd quarter valued at $31,942,000. 95.14% of the stock is owned by institutional investors and hedge funds.

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.