Bath & Body Works (NYSE:BBWI) Issues FY26 Earnings Guidance

Bath & Body Works (NYSE:BBWI) updated its FY26 earnings guidance on Tuesday. The company provided EPS guidance of $3.25-360 for the period, compared to the consensus EPS estimate of $3.61. Bath & Body Works also updated its Q1 guidance to $0.36-0.43 EPS.

Bath & Body Works Trading Down 2.3 %

BBWI opened at $29.75 on Wednesday. Bath & Body Works has a twelve month low of $26.20 and a twelve month high of $52.99. The firm has a market cap of $6.44 billion, a price-to-earnings ratio of 7.26, a PEG ratio of 0.92 and a beta of 1.89. The company has a fifty day simple moving average of $36.91 and a 200 day simple moving average of $34.10.

Bath & Body Works (NYSE:BBWI) last announced its earnings results on Thursday, February 27th. The company reported $2.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.04 by $0.05. The business had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.78 billion. Bath & Body Works had a negative return on equity of 44.03% and a net margin of 12.43%. On average, analysts forecast that Bath & Body Works will post 3.3 earnings per share for the current fiscal year.

Bath & Body Works Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, March 7th. Shareholders of record on Friday, February 21st were paid a dividend of $0.20 per share. This represents a $0.80 annualized dividend and a yield of 2.69%. The ex-dividend date of this dividend was Friday, February 21st. Bath & Body Works’s payout ratio is currently 21.98%.

Bath & Body Works declared that its board has initiated a stock buyback program on Thursday, February 27th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 6.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Piper Sandler lifted their price objective on shares of Bath & Body Works from $36.00 to $39.00 and gave the company a “neutral” rating in a research note on Monday, January 6th. Telsey Advisory Group reissued an “outperform” rating and set a $43.00 target price on shares of Bath & Body Works in a research note on Thursday, February 27th. Cowen reaffirmed a “buy” rating on shares of Bath & Body Works in a research note on Thursday, February 27th. Citigroup upgraded shares of Bath & Body Works from a “neutral” rating to a “buy” rating and increased their price objective for the company from $40.00 to $48.00 in a report on Friday, February 28th. Finally, JPMorgan Chase & Co. set a $47.00 target price on Bath & Body Works in a report on Thursday, February 27th. Five investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $45.06.

About Bath & Body Works

Bath & Body Works, Inc is a specialty retailers and home to America’s Favorite Fragrances, offering a breadth of exclusive fragrances for the body and home, including the selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap.