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

Bath & Body Works (NYSE:BBWI) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 2.600-2.800 for the period, compared to the consensus earnings per share estimate of 2.560. The company issued revenue guidance of $7.5 billion-$7.6 billion, compared to the consensus revenue estimate of $7.0 billion. Bath & Body Works also updated its Q3 2026 guidance to 0.070-0.120 EPS.

Analysts Set New Price Targets

A number of brokerages have weighed in on BBWI. Piper Sandler assumed coverage on Bath & Body Works in a report on Friday, May 15th. They set a “neutral” rating and a $20.00 price target for the company. TD Cowen lifted their target price on Bath & Body Works from $20.00 to $25.00 and gave the stock a “buy” rating in a report on Thursday, May 28th. The Goldman Sachs Group lowered Bath & Body Works from a “neutral” rating to a “sell” rating and dropped their price target for the company from $23.00 to $19.00 in a research note on Wednesday, July 8th. Robert W. Baird reduced their price objective on shares of Bath & Body Works from $25.00 to $23.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Morgan Stanley dropped their price objective on shares of Bath & Body Works from $22.00 to $20.00 and set an “equal weight” rating on the stock in a report on Thursday. Four analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $22.29.

Bath & Body Works Price Performance

BBWI opened at $18.68 on Friday. Bath & Body Works has a fifty-two week low of $14.27 and a fifty-two week high of $32.32. The firm has a market capitalization of $3.76 billion, a PE ratio of 4.86, a P/E/G ratio of 1.84 and a beta of 1.38. The company’s 50-day moving average is $20.32 and its 200 day moving average is $19.97.

Bath & Body Works (NYSE:BBWI) last issued its quarterly earnings data on Wednesday, August 26th. The company reported $0.62 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.38. The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. Bath & Body Works had a negative return on equity of 53.48% and a net margin of 10.83%.The company’s revenue for the quarter was down 2.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.30 EPS. 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. As a group, analysts expect that Bath & Body Works will post 2.67 EPS for the current year.

Bath & Body Works Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 4th. Investors of record on Friday, August 21st will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend is Friday, August 21st. Bath & Body Works’s dividend payout ratio is presently 20.83%.

Hedge Funds Weigh In On Bath & Body Works

Several institutional investors have recently bought and sold shares of BBWI. AQR Capital Management LLC boosted its position in Bath & Body Works by 132.5% during the fourth quarter. AQR Capital Management LLC now owns 11,445,928 shares of the company’s stock worth $229,834,000 after purchasing an additional 6,523,960 shares during the period. Balyasny Asset Management L.P. purchased a new stake in shares of Bath & Body Works in the fourth quarter worth $54,785,000. Bank of America Corp DE increased its stake in 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 worth $87,568,000 after acquiring an additional 1,580,176 shares during the last quarter. Two Sigma Investments LP raised its stake in Bath & Body Works by 1,004.1% in the third quarter. Two Sigma Investments LP now owns 1,443,312 shares of the company’s stock valued at $37,180,000 after purchasing an additional 1,312,586 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in Bath & Body Works during the third quarter valued at about $31,942,000. Hedge funds and other institutional investors own 95.14% of the company’s stock.

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.