Bath & Body Works (NYSE:BBWI) Updates Q3 2026 Earnings Guidance

Bath & Body Works (NYSE:BBWI) issued an update on its third quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.070-0.120 for the period, compared to the consensus earnings per share estimate of 0.270. The company issued revenue guidance of $1.6 billion-$1.7 billion, compared to the consensus revenue estimate of $1.6 billion. Bath & Body Works also updated its FY 2026 guidance to 2.600-2.800 EPS.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on BBWI shares. UBS Group reiterated a “neutral” rating on shares of Bath & Body Works in a research note on Wednesday, August 19th. Piper Sandler started coverage on shares of Bath & Body Works in a research note on Friday, May 15th. They set a “neutral” rating and a $20.00 price objective on the stock. Weiss Ratings raised Bath & Body Works from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, July 9th. Morgan Stanley reiterated an “equal weight” rating and issued a $22.00 price target on shares of Bath & Body Works in a research note on Monday, July 6th. Finally, JPMorgan Chase & Co. upped their price target 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 assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $22.57.

Bath & Body Works Stock Performance

Shares of NYSE BBWI opened at $17.58 on Wednesday. Bath & Body Works has a 52-week low of $14.27 and a 52-week high of $32.32. The company’s 50 day moving average price is $20.39 and its 200-day moving average price is $20.03. The company has a market capitalization of $3.54 billion, a P/E ratio of 4.94, a price-to-earnings-growth ratio of 1.89 and a beta of 1.38.

Bath & Body Works (NYSE:BBWI) last posted its quarterly earnings data on Wednesday, August 26th. The company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.38. Bath & Body Works had a negative return on equity of 45.34% and a net margin of 10.03%.The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates 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. Analysts forecast that Bath & Body Works will post 2.63 earnings per share for the current 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. This represents a $0.80 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date is Friday, August 21st. Bath & Body Works’s payout ratio is presently 22.47%.

Bath & Body Works News Roundup

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 Investors Weigh In On Bath & Body Works

Several hedge funds and other institutional investors have recently bought and sold shares of BBWI. Global Retirement Partners LLC bought a new position in shares of Bath & Body Works during the 4th quarter worth about $31,000. Geneos Wealth Management Inc. raised 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 worth $35,000 after buying an additional 801 shares during the last quarter. Parallel Advisors LLC lifted its stake 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 valued at $38,000 after buying an additional 567 shares in the last quarter. Danske Bank A S bought a new position in shares of Bath & Body Works in the third quarter valued at $39,000. Finally, Advisory Services Network LLC acquired a new position in shares of Bath & Body Works during the third quarter valued at about $48,000. 95.14% of the stock is owned by institutional investors.

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.