Bath & Body Works (NYSE:BBWI) Posts Quarterly Earnings Results, Misses Estimates By $0.05 EPS

Bath & Body Works (NYSE:BBWI) posted its quarterly earnings results on Thursday. The company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.05), FiscalAI reports. The business had revenue of $1.59 billion during the quarter, compared to the consensus estimate of $1.64 billion. Bath & Body Works had a net margin of 9.88% and a negative return on equity of 48.43%. The firm’s revenue was down 1.0% on a year-over-year basis. During the same quarter last year, the company posted $0.49 EPS. Bath & Body Works updated its FY 2025 guidance to 2.870- EPS and its Q4 2025 guidance to 1.700- EPS.

Bath & Body Works Price Performance

BBWI traded down $5.21 during trading on Thursday, hitting $15.84. 7,342,131 shares of the stock traded hands, compared to its average volume of 5,594,151. The firm has a market capitalization of $3.26 billion, a P/E ratio of 4.73, a price-to-earnings-growth ratio of 0.86 and a beta of 1.53. The firm has a 50-day moving average of $25.07 and a 200 day moving average of $28.34. Bath & Body Works has a 12-month low of $15.65 and a 12-month high of $41.87.

Bath & Body Works Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 5th. Investors of record on Friday, November 21st will be given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date is Friday, November 21st. Bath & Body Works’s dividend payout ratio (DPR) is presently 23.74%.

Institutional Investors Weigh In On Bath & Body Works

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE lifted its stake in Bath & Body Works by 86.9% during the 3rd quarter. Bank of America Corp DE now owns 3,399,390 shares of the company’s stock valued at $87,568,000 after acquiring an additional 1,580,176 shares during the period. Two Sigma Investments LP lifted its position in Bath & Body Works by 1,004.1% during 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 during the period. Arrowstreet Capital Limited Partnership purchased a new stake in Bath & Body Works in the third quarter worth approximately $31,942,000. Marshall Wace LLP grew its position in Bath & Body Works by 195.5% in the 3rd quarter. Marshall Wace LLP now owns 1,422,941 shares of the company’s stock worth $36,655,000 after purchasing an additional 941,410 shares during the period. Finally, AQR Capital Management LLC raised its stake in Bath & Body Works by 17.1% during the 3rd quarter. AQR Capital Management LLC now owns 4,921,968 shares of the company’s stock valued at $126,790,000 after buying an additional 718,642 shares during the last quarter. 95.14% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Barclays lowered their price target on shares of Bath & Body Works from $32.00 to $28.00 and set an “equal weight” rating for the company in a report on Monday, October 20th. Citigroup lowered their price objective on Bath & Body Works from $42.00 to $40.00 and set a “buy” rating for the company in a research note on Tuesday, August 19th. Wall Street Zen lowered shares of Bath & Body Works from a “buy” rating to a “hold” rating in a report on Saturday, August 9th. Wells Fargo & Company dropped their price target on shares of Bath & Body Works from $44.00 to $33.00 and set an “overweight” rating for the company in a research note on Monday, October 27th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Bath & Body Works in a research note on Wednesday, October 8th. Ten research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $38.18.

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.