Bath & Body Works (NYSE:BBWI) Releases Q1 2025 Earnings Guidance

Bath & Body Works (NYSE:BBWI) issued an update on its first quarter 2025 earnings guidance on Monday morning. The company provided earnings per share guidance of 0.490-0.490 for the period, compared to the consensus earnings per share estimate of 0.420. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion. Bath & Body Works also updated its FY 2025 guidance to 3.250-3.600 EPS.

Bath & Body Works Stock Down 1.2%

NYSE BBWI traded down $0.42 on Monday, reaching $33.34. The company had a trading volume of 1,728,197 shares, compared to its average volume of 4,831,763. The company’s fifty day moving average is $29.97 and its 200 day moving average is $34.00. Bath & Body Works has a 52-week low of $24.96 and a 52-week high of $52.99. The stock has a market capitalization of $7.10 billion, a P/E ratio of 8.13, a P/E/G ratio of 0.92 and a beta of 1.87.

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

Bath & Body Works Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, June 20th. Stockholders of record on Friday, June 6th will be given a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 2.40%. Bath & Body Works’s dividend payout ratio is presently 21.98%.

Bath & Body Works declared that its Board of Directors has authorized a share repurchase program on Thursday, February 27th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to buy up to 6.4% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several equities research analysts have issued reports on BBWI shares. Citigroup dropped their target price on Bath & Body Works from $48.00 to $36.00 and set a “buy” rating on the stock in a research report on Monday, April 7th. Wells Fargo & Company increased their price objective on Bath & Body Works from $40.00 to $44.00 and gave the stock an “overweight” rating in a report on Wednesday, May 14th. Telsey Advisory Group reaffirmed an “outperform” rating and set a $43.00 target price on shares of Bath & Body Works in a report on Thursday, February 27th. The Goldman Sachs Group lowered their price target on shares of Bath & Body Works from $49.00 to $42.00 and set a “buy” rating on the stock in a report on Tuesday, April 22nd. Finally, Morgan Stanley reduced their price objective on shares of Bath & Body Works from $49.00 to $43.00 and set an “overweight” rating for the company in a research note on Tuesday, May 6th. Four analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $41.94.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Bath & Body Works stock. Royal Bank of Canada grew its stake in shares of Bath & Body Works, Inc. (NYSE:BBWI) by 92.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 59,877 shares of the company’s stock after buying an additional 28,815 shares during the period. Royal Bank of Canada’s holdings in Bath & Body Works were worth $1,815,000 as of its most recent filing with the Securities and Exchange Commission (SEC). 95.14% of the stock is owned by institutional investors and hedge funds.

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.