Bath & Body Works, Inc. (BBWI) on Q2 2021 Results - Earnings Call Transcript

Operator: Good morning. My name is Cedric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bath & Body Works Second Quarter 2021 Earnings Conference Call. Please be advised that today’s conference is being recorded. I would now like to turn today’s call over to Ms. Wendy Arlin, Chief Financial Officer at Bath & Body Works. Wendy, you may begin. Wendy Arlin: Thank you. Good morning, and welcome to Bath & Body Works’ second quarter earnings conference call for the period ending July 31, 2021. I’m excited to be with you today on my first earnings call as the Bath & Body Works’ CFO. As a matter of formality, I need to remind you that any forward-looking statements we may make today are subject to our safe harbor statement found in our SEC filings and in our press releases. Joining me on the call today are CEO, Andrew Meslow; and SVP of Investor Relations, Amie Preston. All results we discuss on the call today are adjusted results and exclude the 2020 special items described in our press release. Our second quarter results include the Victoria’s Secret business. Consistent with our previously disclosed intention to reduce debt by up to $500 million, this morning, we announced a tender offer to purchase $500 million of our 2023, 2025 and 2027 outstanding notes, which commences today. Thank you. And now I’ll turn the call over to Andrew. Andrew Meslow: Thanks, Wendy, and good morning, everyone. Welcome to our first earnings call as a stand-alone public company. We are thrilled to have reached this milestone and to launch Bath & Body Works as a stand-alone company. Innovation remains at the foundation of Bath & Body Works. And with our leadership positions across key product categories, strong performance across channels and a highly loyal and growing customer base, we are poised to continue our track record of industry-leading growth and profitability. On behalf of the management team and the Board, I’d like to extend our sincere appreciation to all the associates who have worked so hard on the successful spin-off of Victoria’s Secret. I am grateful to all of our associates for their contributions to the success of our business as we look forward to capturing the opportunities ahead, and we wish the Victoria’s Secret business and associates well as they embark on their journey as a stand-alone public company. Turning to our second quarter performance. We delivered record results, and we could not have done so without the continued hard work and commitment of all of our associates and partners. We’d like to express our deep appreciation for their dedication and efforts. We reported record second quarter earnings of $1.34 per share compared to adjusted earnings of $0.25 per share last year. These bottom line results were driven by continued strong sales and better-than-expected margin rates at both Bath & Body Works and Victoria’s Secret. At Bath & Body Works, we continue to deliver record results, with sales growth of 54% compared to 2019. All categories achieved solid growth, and strong sales demand continued to allow us to pull back on promotional activity versus 2019. The Bath & Body Works’ segment operating income in the second quarter was $431 million, an increase of 135% or $247 million compared to 2019 and an increase of 24% or $82 million compared to last year. Our operating income rate for the quarter of 25.3% increased 870 basis points compared to 2019, driven by merchandise margin rate expansion and leverage in both buying and occupancy and SG&A on the high sales growth. We expect that the remainder of 2021 will not be easy as the world, the real environment and our business continue to evolve and as we lap extraordinary 2020 results. We are optimistic about our fall and holiday product assortment and our continued ability to execute against our plans in stores and online. Risks related to COVID do persist, and we will continue to operate both of our channels in a safe manner for our customers and our associates. With continued smart and disciplined management of the business, I know we can proactively accelerate to our next phase of growth. Thank you very much, and I’ll turn it over to Amie Preston. Amie Preston: Thanks, Andrew. That concludes our prepared comments. At this time, we’d be happy to take any questions that you might have. We plan to end this call shortly before 9:30 in order to allow you to join the Victoria’s Secret earnings call. Thanks. And I’ll turn it back over to the operator. Operator: That first question comes from Kimberly Greenberger with Morgan Stanley. Kimberly Greenberger: Okay, great. Very nice quarter, and congratulations on the separation. I wanted to ask about the sort of look forward, if we could, into Q3 and Q4 and how we should think about -- if you have any way for us to think about the stand-alone business and the financials. And any comment you thought about how Q3 started, that would be very helpful. Amie Preston: Thanks, Kimberly. We’ll go to Andrew. Andrew Meslow: Kimberly, thanks for the question. So to the second part of your question, in terms of how the quarter has gotten started and our guidance for the third quarter, as we said in our prepared remarks, the first couple of weeks of August, we’ve been very satisfied with, and those results are incorporated in our forecast. Again, those first 2 weeks, we’ve seen momentum that’s quite similar to the performance we were seeing in the second quarter. So that will potentially imply upside to the up 40% to 45% that we’ve guided at quarter 2. But again, those are 2 weeks out of 13 weeks and relatively small weeks relative to the overall quarter. So again, that guidance that we’ve provided of up 40% to 45% on a 2-year basis for Q3 is a forecast that we feel very good about at this point. I wasn’t sure at the first part of your question. You had questions around the financial structure of the business going forward? Kimberly Greenberger: Just now that we’re getting past the separation, any additional color you could give us on the incremental overhead or the sort of all-in SG&A burden and interest expense of the stand-alone company, that would be great. Amie Preston: Sure. So we’ll go to Wendy for that, Kimberly. Wendy Arlin: Yes. So as we talked about in our remarks, the go-forward company will have 2 pieces. So we’ll have the Bath & Body Works operating segment that we’ve reported extensively historically. And also, as we’ve disclosed, we’ll have about $25 million per quarter of corporate overhead expense. It was previously reported in the other segment. The vast majority of that $25 million is SG&A, so it will be included in SG&A. But the guidance we shared last night is all-inclusive of those 2 pieces, so the BBW segment and the corporate overhead. The other point I would make, go forward, is we’ve also disclosed that, as we look to separate the 2 businesses, one of the key areas of focus is in the technology area. We do anticipate over a multiyear period that we will incur $100 million to $150 million of costs that will be both capital and expense. That will be a multiyear period. And we’ll be working with Victoria’s to make sure that we separate the technology in a way that doesn’t disrupt either business and minimizes the deleverage, but that will be incorporated into our guidance as we go forth into 2022. Amie Preston: Thanks, Kimberly. Operator: Our next question comes from Matthew Boss with JP Morgan. Matthew Boss: Great. Congrats on a nice quarter. So Andrew, on the top line, and as we think about the consistency and trend that you continue to show, I guess my question is, beyond this year, is there anything preventing revenue growth that you outlined, mid- to high single-digit revenue growth algorithm, as we think about next year and beyond? And then, Wendy, just more near term on gross margin, what have you embedded from a promotional backdrop in the gross margin guidance for the third quarter and back half of the year? Amie Preston: Thanks, Matt. We’ll actually go to Andrew for both those questions. Andrew Meslow: Thanks, Matt. So on the top line growth aspect, again, we feel very comfortable with those 3- to 5-year targets that we provided as part of the investor meeting and road shows over the last month or so. Obviously, 2022, much like 2021, will be an interesting year as we lap extraordinary results. So it’s a little hard to predict exactly what quarter-to-quarter might look like next year. But again, we feel very comfortable in those long-term mid- to high single-digit revenue growth rate targets that we provided. On the promotional side, what I would say there is, consistent with how we plan every season, we go into a season with what we hope is a conservative plan, intending to essentially anniversary similar promotional activity from prior year. And then we use our in-season read-and-react capability around testing and constant analysis of our results to determine whether or not we need to increase or have the opportunity to decrease levels of promotion. As you’ll remember, in the back half of last year, we were in chase mode for the entire time frame and had very little promotional activity, record-low levels of promotional activity, and that’s what we’re lapping. So our forecast does assume both a return to a slightly more promotional environment than what we would have experienced last year. And as we delineated in our prepared remarks, we are also seeing some inflationary pressures that will impact our margin as well. Both of those factors are embedded in our guidance. Amie Preston: Great. Thanks, Matt. Operator: The Next question comes from Steph Wissink with Jefferies. Sydney Wagner: This is Sydney on for Steph. My question is regarding Bath & Body Works. I’m just wondering kind of how the rebalancing of spend across stores versus digital that we saw in the Q2 results compared to internal expectations. And then just as a follow-up, could you provide some color on what’s assumed in the guidance in terms of sales for the core sanitization categories? Amie Preston: Thanks, Sydney. Andrew? Andrew Meslow: Yes. So to your question on channel mix within the second quarter versus our expectations, again, our total sales performance for the quarter was slightly above our expectations with, I would say, direct more or less in line -- or digital more or less in line with our expectations and stores continuing to perform slightly above our expectations. But again, strong results out of both. As a reminder, our digital business in the second quarter on a 2-year basis was up 128% to 2019. That was actually slightly better than the performance it saw in Q1, and our stores were up around 39% in Q2, very close to what we achieved in Q1. In terms of the soap and sanitizer business, as we think about that, as we mentioned in our prepared remarks, it did decline on a 1-year basis in Q2 of this year. However, on a 2-year basis, it’s continued to be up strongly, up 58% to 2 years ago, which was higher than the total business at up 54% to 2 years ago. Again, as expected, it declined year-over-year, where, last year, it was experiencing explosive growth. Our forecast, go forward, does assume that we’ll continue to see some softening in that business on a year-over-year basis. As we talked about at the end of last year, soaps and sanitizer, in total, had gotten to be about 20% of the total business, up from roughly 14% of the business in the prior 5-year time frame. We would expect that it will normalize somewhere in the mid-teens, and that’s consistent with what we’ve seen here through the first 2 quarters of the year. But again, what I would highlight is we were very pleased that, even as that business, as expected, softened year-over-year, we were able to more than overcome that, offset that with strong growth out of our other categories, leading to the total growth that we articulated. Amie Preston: Great. Thank you, Sydney. Operator: The next question comes from Roxanne Meyer with MKM Partners. Roxanne Meyer: Great. Let me add my congratulations on a really strong quarter, and congrats on the separation. My question is on free cash flow. I’m just wondering if you could give us a sense of what the free cash flow that just Bath & Body Works alone has grown off over the past few years. How much you expect it to generate? And how you’re looking to deploy excess cash going forward? Obviously, you’ve got the debt buyback announced today, but just generally, what you’re thinking about. Amie Preston: Thanks, Roxanne. Wendy? Wendy Arlin: Sure, Roxanne. Yes, you commented about cash flow, I mean, you know our business well. We are a seasonal business. And so typically, as this business looks to Q3, it’s a period of cash usage for us as we build our inventory going into the fourth quarter. The fourth quarter is extremely important to us in terms of cash flow generation. And I’m not sure, history is the best guide here, just given that the business has grown so much as you look at it over a multiyear basis. So I’d say, what we’re planning to do is we’ll get through the important fourth quarter period to generate cash. We -- as we flip the calendar to 2022, we will look at our cash flow, and we’ll think about capital allocation and what that means go forward. In terms of our plans for the fall season, we -- as we announced today, we’re executing a tender offer for the $500 million. In addition, we have about $770 million remaining on our $1.5 billion authorization that we announced in July. So our intent is to execute that $770 million over the fall season in a balanced way. And again, as we get to the end of the holiday period, we’ll work with our Board of Directors to determine capital allocation prospectively. Amie Preston: Great. Thanks, Roxanne. Operator: Our next question comes from Omar Saad, Evercore. Omar Saad: I wanted to follow up on the category discussion, maybe get a little bit more detail around home fragrance. Some of the consumer trends you’re seeing in that business, obviously, if soaps and sanitizers are down, that’s doing really well. And especially any signs on what the new customers at the franchise are attracted? How they’re continuing to shop in the home fragrance category? Especially as back-to-school and return-to-office and the world reopens, is that customer staying sticky? Amie Preston: Thanks, Omar. Andrew? Andrew Meslow: Thanks, Omar. So on the category side, you’re right to infer that home fragrance continues to be strong. And in the second quarter, where we saw the decline in soaps and sanitizers, obviously, that was true. I do think it’s important to point out, though, that body care, our other big category, are actually seeing very strong year-over-year growth as well as on a 2-year growth basis as well, which really gets, I think, to the heart of your question around what have we seen in terms of the customers that we’ve gained through the pandemic and how has their behavior compare relative to our prior-to-pandemic existing customer base. And I think the good news there is a couple of points. So one, after seeing a year in 2020 where we actually saw fewer customers than we had in the prior year because of the 90-day closure of all of our stores in the first half of 2020, we have now seen 4 quarters in a row of customer growth. And so on a rolling 12 basis, we’re now up in customers pretty significantly to where we had finished the year in 2019 and, obviously, in 2020. And in terms of the behavior and the profile of those customers, I would say the good news is that the new customers that we’ve gained along that journey, while early in their spending habits with Bath & Body Works, do appear to be performing very similarly to historical new customers. And our existing customers, as we’ve talked about on prior calls and in our Investor Days, we’ve continued to see improvement in their engagements in terms of both their willingness to shop across our 2 channels, digital and in-store, as well as to shop across all 3 of our major categories. So again, we continue to see higher and higher ratios of our customers performing in those 2 ways. And when that occurs, as we’ve shared, customer spend is significantly higher than either a single-channel or a single-category customer. So very pleased with what we’ve been able to see so far in terms of the customer behavior that we’re experiencing here as we move in through 2021. Amie Preston: Great. Thanks, Omar. Operator: Your next question comes from Susan Anderson with B. Riley. Susan Anderson: I was wondering if maybe you could talk about product category expansion at BBW, particularly as it relates to beauty when you would expect to maybe start expanding more into beauty and then also in the other categories. And then also, I’m not sure if you mentioned AUR versus unit sales in the quarter. Amie Preston: Thanks, Susan. Andrew? Andrew Meslow: Yes. So on the first part of your question, as we talked about pretty thoroughly in our Investor Day, as we laid out our multiyear path to driving Bath & Body Works to become a $10 billion business over the next 3 to 5 years, we’re really not all that reliant on seeing a yet-to-be-determined category emerge as a strong driver of growth. That said, we have lots of different ideas in the pipeline that we will be looking to test over the next several years. And from a testing standpoint, different than where we may have done things historically, which would have been small cells of store groups. We’ll also be looking to test new product categories in our online digital business as well. As we’ve talked about, those ideas run the gamut from potentially getting into the skin care business, getting into the hair care business, looking at further line extensions within the home business, whether that’s into cleaning products or laundry products, et cetera. So lots of different ideas that are, again, in the pipeline. We will be testing those, as we had discussed prior, in both a organic internal development way as well as partnering with third-party brands to sell in our stores, to understand which of those categories might emerge as something that the Bath & Body Works’ customer has the most interest in. So again, lots of different things in the pipeline. Most of those tests that I’m describing will be ramping up a little bit more in the back half of this year, but much more in 2022 and beyond. In terms of your question on AUR. So AUR, on a 2-year basis, for the business, up over 20%, and units up a comparable amount on a 2-year basis. On a 1-year basis, we did see more expansion out of units with, obviously, the stores having been closed last year. AUR was still up slightly to last year, but more similar, in line, on a 1-year basis. Hopefully that helps. Amie Preston: Thanks. Operator: Our next question comes from Ike Boruchow, Wells Fargo. Irwin Boruchow: Two quick ones. The cost inflation guided for the $40 million to $60 million. I’m just curious, are you embedding -- are you kind of just flowing those costs into the P&L? Or are you embedding any kind of offset on pricing or anything? I’m just kind of curious how you’re planning the business from a margin perspective. And then, Wendy, just the $600 million cash in escrow, can you just explain exactly what that is and what’s going on there? Amie Preston: Okay. Thanks. We’ll go to Andrew first. Andrew Meslow: Thanks, Ike. So on the inflation forecast range, part of the reason why it’s a range is it will -- we’re working hard to obviously mitigate and offset as much of that pressure as we can. But there will be -- there are and will be real cost increases that the business faces, and they run the gamut from product input costs to wage pressure, to transportation pressure, to supply pressure. On the product input portion, we work very hard on our ticketing strategy and our promotional strategies, historically, to try to offset cost increases. And we’ll certainly try to do that again this quarter and the rest of this year. I think it’s important to understand, though, that the base from which we’re coming is one where there was so much less promotional activity in the history last year already, that curtailing even more promotional activity will be that much more challenging. So a long-winded way to say that our margin forecasts do assume that quite a bit of that inflationary pressure will actually come through to the bottom line. Amie Preston: Thanks, Andrew. Wendy? Wendy Arlin: Yes, the $600 million. So as Victoria’s Secret has disclosed, they issued $1 billion of debt, $600 million of it was actually issued and completed prior to the spin and prior to quarter end. So it’s essentially -- if you look at our reported consolidated balance sheet, it’s essentially a gross up. So we have the cash from the proceeds of the issuance sitting in escrow on a restricted basis, and then the offset is down in long-term debt. Both at those -- both items went to Victoria’s Secret as part of the spin. But since we had the cash and the bank, so to speak, at the quarter end, it’s sitting on the consolidated balance sheet. Amie Preston: Great. Thanks. Unfortunately, that’s all the time we have this morning, but we’d like to thank you for your continuing interest in Bath & Body Works. Operator: Thank you. And that concludes today’s conference. You may disconnect at this time.
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Bath & Body Works Tops Q1 EPS Estimates, But Shares Fall 6% on Revenue Miss

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) Earnings Overview and Financial Health

  • Earnings Beat: BBWI reported earnings per share of $0.49, surpassing the estimated $0.46, indicating potential positive stock price movement.
  • Revenue Shortfall: Despite exceeding earnings expectations, BBWI's revenue of $1.4 billion fell slightly short of the estimated $1.42 billion.
  • Financial Metrics: BBWI's financial ratios such as a P/E ratio of 8.25 and a current ratio of 1.48 provide insights into its market valuation and financial health.

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) Stock Analysis: A Niche Market Player with Promising Earnings Growth

  • Analysts have adjusted BBWI's price target, reflecting a more conservative outlook compared to last year.
  • BBWI's upcoming fiscal first-quarter earnings are anticipated to show a 21% increase in earnings per share and a 3% rise in revenue.
  • Strategic initiatives and positive analyst ratings suggest potential for BBWI to surpass earnings expectations and achieve future growth.

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 (NYSE: BBWI) Quarterly Earnings Preview

  • Analysts expect earnings per share (EPS) of $0.46 and revenue of $1.42 billion, reflecting a 21% increase in earnings and a 3% rise in sales year-over-year.
  • The company's stock has a 60% chance of rising post-earnings, with a historical median one-day increase of 4.8%.
  • BBWI faces challenges such as U.S. tariffs, sluggish discretionary spending, and increased competition, yet its financial metrics like the P/E ratio of 8.27 and earnings yield of 12.10% are key indicators for investors.

Bath & Body Works (NYSE: BBWI) is a well-known retailer specializing in personal care products, including fragrances, lotions, and candles. The company is set to release its quarterly earnings on May 29, 2025. Analysts expect earnings per share (EPS) of $0.46 and revenue of $1.42 billion. This anticipated performance reflects a 21% increase in earnings and a 3% rise in sales compared to the previous year.

The company's stock has historically shown positive movement following earnings announcements, with a 60% chance of rising and a median one-day increase of 4.8%. The maximum recorded surge post-earnings is 25%. However, in the fourth quarter of 2024, BBWI faced challenges, including a 4% decline in net sales and an 18% drop in earnings per diluted share. These declines were attributed to a shifted fiscal calendar and reduced consumer demand.

Looking ahead, Bath & Body Works faces several challenges, including U.S. tariffs on Chinese imports, sluggish discretionary spending, and increased competition from lower-cost private-label options. Additionally, high interest rates and economic uncertainties continue to exert pressure on the company. Despite these challenges, the market is keenly watching to see if BBWI can surpass current estimates, as this could positively influence the stock's price.

BBWI's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 8.27, indicating how the market values its earnings. Its price-to-sales ratio is about 0.89, suggesting the company's market value relative to its revenue. The enterprise value to sales ratio is around 1.48, reflecting the company's total valuation compared to its sales. The enterprise value to operating cash flow ratio is approximately 12.18, indicating how the company's valuation compares to its cash flow from operations.

The company's earnings yield is about 12.10%, providing insight into the return on investment for shareholders. BBWI has a negative debt-to-equity ratio of approximately -3.58, which may indicate a higher level of debt compared to its equity. Lastly, the current ratio is approximately 1.48, suggesting the company's ability to cover its short-term liabilities with its short-term assets. These financial metrics are crucial for investors as they assess the company's financial health and potential for future growth.

Bath & Body Works, Inc. (NYSE:BBWI) Shows Promising Growth and Strong Fundamentals

  • Bath & Body Works, Inc. (NYSE:BBWI) has experienced a monthly gain of 8.49%, indicating strong investor confidence.
  • The company's stock has a projected increase of 37.95%, highlighting significant growth potential.
  • BBWI's Piotroski Score of 8 underscores its financial health and operational efficiency.

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.

Bath & Body Works, Inc. (NYSE:BBWI) Maintains "Outperform" Rating Amid Financial Forecasts

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.

Bath & Body Works, Inc. (NYSE:BBWI) Maintains "Outperform" Rating Amid Financial Forecasts

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.