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

Bath & Body Works (NYSE:BBWI) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 2.400-2.650 for the period, compared to the consensus estimate of 2.740. The company issued revenue guidance of -. Bath & Body Works also updated its Q1 2026 guidance to 0.240-0.300 EPS.

Wall Street Analyst Weigh In

BBWI has been the topic of several analyst reports. Guggenheim started coverage on Bath & Body Works in a research report on Tuesday, December 9th. They set a “neutral” rating on the stock. Morgan Stanley reiterated an “equal weight” rating and set a $18.00 price objective (down from $43.00) on shares of Bath & Body Works in a research note on Friday, November 21st. Zacks Research upgraded shares of Bath & Body Works from a “strong sell” rating to a “hold” rating in a research note on Tuesday, January 20th. Jefferies Financial Group started coverage on shares of Bath & Body Works in a report on Wednesday, January 14th. They set a “hold” rating and a $24.00 price target on the stock. Finally, UBS Group increased their price objective on shares of Bath & Body Works from $21.00 to $22.00 and gave the stock a “neutral” rating in a research note on Monday, February 23rd. Three analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $23.86.

Bath & Body Works Stock Up 3.6%

Shares of NYSE:BBWI opened at $23.23 on Wednesday. The firm has a fifty day simple moving average of $22.25 and a two-hundred day simple moving average of $23.59. Bath & Body Works has a 52 week low of $14.27 and a 52 week high of $35.21. The stock has a market capitalization of $4.76 billion, a P/E ratio of 7.15, a PEG ratio of 0.97 and a beta of 1.48.

Bath & Body Works (NYSE:BBWI) last released its quarterly earnings results on Wednesday, March 4th. The company reported $2.05 EPS for the quarter, topping the consensus estimate of $1.76 by $0.29. Bath & Body Works had a negative return on equity of 47.35% and a net margin of 9.50%.The company had revenue of $2.72 billion during the quarter, compared to analyst estimates of $2.59 billion. During the same quarter last year, the business posted $2.09 earnings per share. The firm’s revenue 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. On average, analysts expect that Bath & Body Works will post 3.3 earnings per share for the current year.

Bath & Body Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Friday, February 20th will be paid a $0.20 dividend. The ex-dividend date of this dividend is Friday, February 20th. This represents a $0.80 annualized dividend and a yield of 3.4%. Bath & Body Works’s dividend payout ratio (DPR) is presently 24.62%.

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

Hedge Funds Weigh In On Bath & Body Works

A number of hedge funds have recently added to or reduced their stakes in BBWI. AQR Capital Management LLC raised its position in Bath & Body Works by 132.5% during the 4th 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 in the last quarter. Balyasny Asset Management L.P. purchased a new position in Bath & Body Works during the 4th quarter valued at about $54,785,000. Bank of America Corp DE raised its holdings 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 purchasing an additional 1,580,176 shares in the last quarter. Two Sigma Investments LP lifted 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 worth $37,180,000 after purchasing an additional 1,312,586 shares during the period. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of Bath & Body Works during the third quarter valued at approximately $31,942,000. 95.14% of the stock is currently owned by institutional investors.

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.