Bath & Body Works (NYSE:BBWI) Issues 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 EPS 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.

Bath & Body Works Stock Down 1.2%

NYSE BBWI opened at $18.68 on Friday. The company has a market capitalization of $3.76 billion, a P/E ratio of 4.86, a P/E/G ratio of 1.84 and a beta of 1.38. Bath & Body Works has a 12-month low of $14.27 and a 12-month high of $32.32. The firm has a 50-day moving average price of $20.32 and a two-hundred day moving average price of $19.97.

Bath & Body Works (NYSE:BBWI) last released its quarterly earnings results on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.38. Bath & Body Works had a net margin of 10.83% and a negative return on equity of 53.48%. The company had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same quarter last year, the firm posted $0.30 earnings per share. The company’s quarterly revenue was down 2.3% compared to the same quarter last year. 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. Equities analysts expect that Bath & Body Works will post 2.67 EPS for the current year.

Bath & Body Works Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 4.3%. The ex-dividend date is Friday, August 21st. Bath & Body Works’s dividend payout ratio (DPR) is 20.83%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Barclays decreased their price target on shares of Bath & Body Works from $23.00 to $22.00 and set an “equal weight” rating for the company in a report on Thursday. Wells Fargo & Company dropped their price objective on Bath & Body Works from $26.00 to $24.00 and set an “overweight” rating on the stock in a research note on Thursday. The Goldman Sachs Group cut Bath & Body Works from a “neutral” rating to a “sell” rating and cut their price objective for the stock from $23.00 to $19.00 in a research report on Wednesday, July 8th. UBS Group decreased their target price on Bath & Body Works from $19.00 to $17.00 and set a “neutral” rating for the company in a research note on Thursday. Finally, Raymond James Financial reaffirmed a “market perform” rating on shares of Bath & Body Works in a report on Wednesday, May 27th. Four investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $22.29.

More Bath & Body Works News

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

• Positive Sentiment: BBWI reported second-quarter adjusted EPS of $0.62, well above the $0.24 consensus estimate, while revenue of $1.51 billion modestly exceeded expectations. The earnings beat was supported by demand for body-care and home-fragrance products and improved digital sales. BBWI Stock Jumps 7.5% on Q2 Earnings Beat, Fiscal 2026 Outlook Raised
• Positive Sentiment: Management raised fiscal 2026 adjusted EPS guidance to $2.60-$2.80 from $2.40-$2.65 and projected revenue of $7.5-$7.6 billion. The company also cited progress in its transformation plan, with a goal of approximately $250 million in cost savings and stronger cash generation. Bath & Body Works lifts annual profit forecast
• Neutral Sentiment: Analysts remain divided after the results. Morgan Stanley reduced its price target to $20 from $22 while keeping an Equal Weight rating; UBS cut its target to $17 from $19 and maintained a Neutral rating. These targets suggest limited upside or downside from recent trading levels. Analyst price-target changes
• Negative Sentiment: Near-term performance remains pressured by weak store traffic and declining overall sales. Second-quarter revenue fell 2.3% year over year, and third-quarter adjusted EPS guidance of $0.07-$0.12 is substantially below the roughly $0.27 analyst consensus, raising concerns about promotional activity and continued softness in physical stores. Bath & Body Works results top expectations

Institutional Investors Weigh In On Bath & Body Works

Hedge funds have recently made changes to their positions in the stock. Global Retirement Partners LLC bought a new position in Bath & Body Works during the fourth quarter valued at about $31,000. Geneos Wealth Management Inc. grew its holdings 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. Parallel Advisors LLC increased its position in shares of Bath & Body Works by 42.6% during the fourth quarter. Parallel Advisors LLC now owns 1,897 shares of the company’s stock valued at $38,000 after purchasing an additional 567 shares during the period. Danske Bank A S bought a new stake in shares of Bath & Body Works during the third quarter valued at approximately $39,000. Finally, Advisory Services Network LLC acquired a new position in shares of Bath & Body Works in the third quarter valued at $48,000. 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.