Bath & Body Works (NYSE: BBWI) Quarterly Earnings Preview

Bath & Body Works (NYSE:BBWI) delivered better-than-expected first-quarter earnings, posting adjusted EPS of $0.49, above the $0.42 consensus and marking a 29% increase year-over-year. Revenue rose 2.9% to $1.4 billion, aligning with the high end of company guidance but slightly missing the $1.42 billion Street estimate. Shares fell more than 6% intra-day today following the report.

The company reaffirmed its full-year 2025 outlook, projecting net sales growth of 1–3% and EPS between $3.25 and $3.60. Guidance accounts for existing tariff impacts and roughly $300 million in planned share repurchases.

For Q2, Bath & Body Works expects flat to 2% revenue growth and EPS in the range of $0.33–$0.38. CFO Eva Boratto cited strong consumer response to product innovation and emphasized the advantage of a U.S.-centric supply chain amid ongoing trade uncertainty.

Bath & Body Works, Inc. (NYSE:BBWI) is a well-known retailer specializing in personal care and home fragrance products. The company, which also owns Victoria's Secret, operates numerous chain stores across the United States. BBWI is set to release its fiscal first-quarter earnings on May 29, 2025, with analysts projecting earnings of $0.47 per share on revenue of $1.42 billion. This marks a 21% increase in earnings and a 3% rise in sales compared to the previous year.

On May 29, 2025, BBWI reported earnings per share of $0.49, surpassing the estimated $0.46. The company generated revenue of $1.4 billion, slightly below the estimated $1.42 billion. Despite the revenue shortfall, the earnings per share exceeded expectations, which could lead to a positive movement in the stock price. Historically, BBWI stock has risen 60% of the time following earnings announcements, with a median one-day increase of 4.8%.

In the previous quarter, BBWI faced challenges, including a 4% decrease in net sales and an 18% decline in earnings per diluted share. These were attributed to a shifted fiscal calendar and reduced consumer demand. Looking ahead, the company faces challenges from U.S. tariffs on Chinese imports, sluggish discretionary spending, and increased competition from lower-cost private-label options. Persistently high interest rates and economic uncertainties continue to exert pressure on the company.

BBWI's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 8.25, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 0.89, suggesting the company's market value relative to its sales. The enterprise value to sales ratio is around 1.47, reflecting the company's total valuation compared to its revenue. The enterprise value to operating cash flow ratio is approximately 12.16, indicating how well the company can generate cash from its operations relative to its valuation.

The company's current ratio is about 1.48, suggesting its ability to cover short-term liabilities with short-term assets. However, BBWI has a negative debt-to-equity ratio of approximately -3.58, which may indicate a higher reliance on debt financing. Investors are keenly observing these developments for insights into the company's strategic direction, especially in light of the upcoming earnings report.

Bath & Body Works, Inc. (NYSE:BBWI) is a well-known specialty retailer in the beauty and personal care industry. The company is recognized for its wide range of fragrant products, including body care, home fragrances, and soaps. Competing with other beauty retailers like ULTA, BBWI focuses on a niche market, offering a unique investment opportunity with promising earnings growth.

Over the past year, BBWI's consensus price target has experienced fluctuations. Last month, the average price target was $41, slightly higher than the previous quarter's $40. However, it was lower than last year's $45.88. This trend suggests that analysts have become more conservative in their expectations for BBWI's stock performance.

Earnings reports play a significant role in shaping analysts' price targets. BBWI is set to release its fiscal first-quarter earnings on May 29, 2025, with analysts projecting earnings of 47 cents per share, a 21% increase from the previous year. Revenue is expected to reach $1.42 billion, a 3% rise from last year's $1.38 billion. Positive earnings surprises could lead to upward revisions in price targets.

Market conditions also impact stock evaluations. The retail sector, including BBWI, faces challenges like supply chain disruptions and changing consumer preferences. Despite these hurdles, BBWI's strategic initiatives, such as expanding product lines and enhancing its digital presence, could influence future earnings potential and analysts' price targets.

Analyst ratings are another factor affecting the consensus price target. Credit Suisse analyst Michael Binetti has set a price target of $49 for BBWI, indicating a positive outlook for the stock. This suggests confidence in BBWI's ability to surpass earnings expectations and achieve future growth, despite the recent decrease in the consensus price target.

Bath & Body Works, Inc. (NYSE:BBWI) is a well-known retailer specializing in personal care and home fragrance products. The company operates a vast network of stores and an online platform, offering a wide range of products such as body lotions, candles, and hand soaps. BBWI competes with other major retailers in the personal care industry, including The Body Shop and Lush.

BBWI has shown a strong performance recently, with a monthly gain of 8.49%. This indicates that investors have confidence in the company's ability to perform well in the market. Despite a slight decline of 1.80% over the past 10 days, this dip might be a good opportunity for investors to buy the stock at a lower price, anticipating a potential rebound.

The company's growth potential is impressive, with a projected stock price increase of 37.95%. This suggests that there is significant room for the stock to grow, supported by BBWI's strategic initiatives and strong market position. Analysts have set a target price of $43, reflecting their optimism about the company's future performance.

BBWI's strong fundamentals are highlighted by its Piotroski Score of 8. This score indicates that the company is financially healthy and operates efficiently. The Piotroski Score is a measure of a company's financial strength, taking into account factors like profitability, liquidity, and operational efficiency. A high score suggests that BBWI is well-managed and financially stable.

Overall, BBWI's recent performance, growth potential, and solid fundamentals make it an attractive investment option. The recent dip in stock price could be a strategic entry point for investors looking to benefit from the company's long-term growth prospects. As BBWI continues to execute its strategic plans and capitalize on market opportunities, it is well-positioned to deliver value to its shareholders.

• Raymond James reaffirms an "Outperform" rating for Bath & Body Works, Inc. (NYSE:BBWI), with a price target increase from $42 to $46.
• BBWI is expected to report a slight decline in earnings and revenue for the fourth quarter, with earnings of $2.04 per share and revenue of $2.78 billion.
• The company declares a regular quarterly dividend of 20 cents per share, showcasing its commitment to shareholder value.

Bath & Body Works, Inc. (NYSE:BBWI) is a well-known retailer specializing in personal care and home fragrance products. The company operates primarily in North America and is recognized for its wide range of scented products. BBWI competes with other major retailers in the personal care industry, such as The Body Shop and Lush.

On February 26, 2025, Raymond James reaffirmed their "Outperform" rating for BBWI, with the stock priced at $41.08. This rating suggests confidence in the company's future performance. Analyst Olivia Tong from Raymond James also increased the price target from $42 to $46, indicating a positive outlook for the stock.

BBWI is set to release its fourth-quarter financial results on February 27, 2025. Analysts expect earnings of $2.04 per share, slightly down from $2.06 per share in the same period last year. The anticipated quarterly revenue is $2.78 billion, a decrease from $2.91 billion a year ago. These figures suggest a slight decline in financial performance.

On February 7, BBWI declared a regular quarterly dividend of 20 cents per share, payable on March 7. This dividend reflects the company's commitment to returning value to shareholders. The stock recently saw a 1.1% increase, closing at $41.08, with a trading range between $40.75 and $41.87 during the day.

BBWI's market capitalization is approximately $8.9 billion, with a trading volume of 7,208,354 shares on the NYSE. Over the past year, the stock has fluctuated between a high of $52.99 and a low of $26.21. This volatility highlights the dynamic nature of the stock market and the potential for future growth.

• Raymond James reaffirms an "Outperform" rating for Bath & Body Works, Inc. (NYSE:BBWI), with a price target increase from $42 to $46.
• BBWI is expected to report a slight decline in earnings and revenue for the fourth quarter, with earnings of $2.04 per share and revenue of $2.78 billion.
• The company declares a regular quarterly dividend of 20 cents per share, showcasing its commitment to shareholder value.

Bath & Body Works, Inc. (NYSE:BBWI) is a well-known retailer specializing in personal care and home fragrance products. The company operates primarily in North America and is recognized for its wide range of scented products. BBWI competes with other major retailers in the personal care industry, such as The Body Shop and Lush.

On February 26, 2025, Raymond James reaffirmed their "Outperform" rating for BBWI, with the stock priced at $41.08. This rating suggests confidence in the company's future performance. Analyst Olivia Tong from Raymond James also increased the price target from $42 to $46, indicating a positive outlook for the stock.

BBWI is set to release its fourth-quarter financial results on February 27, 2025. Analysts expect earnings of $2.04 per share, slightly down from $2.06 per share in the same period last year. The anticipated quarterly revenue is $2.78 billion, a decrease from $2.91 billion a year ago. These figures suggest a slight decline in financial performance.

On February 7, BBWI declared a regular quarterly dividend of 20 cents per share, payable on March 7. This dividend reflects the company's commitment to returning value to shareholders. The stock recently saw a 1.1% increase, closing at $41.08, with a trading range between $40.75 and $41.87 during the day.

BBWI's market capitalization is approximately $8.9 billion, with a trading volume of 7,208,354 shares on the NYSE. Over the past year, the stock has fluctuated between a high of $52.99 and a low of $26.21. This volatility highlights the dynamic nature of the stock market and the potential for future growth.