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

Bath & Body Works (NYSE:BBWI) issued its quarterly earnings results on Thursday. The company reported $2.09 earnings per share for the quarter, beating analysts’ consensus estimates of $2.04 by $0.05, Zacks reports. Bath & Body Works had a net margin of 12.43% and a negative return on equity of 44.03%. The firm had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.78 billion. Bath & Body Works updated its Q1 2025 guidance to 0.360-0.430 EPS and its FY 2025 guidance to 3.250-3.600 EPS.

Bath & Body Works Price Performance

Shares of NYSE BBWI traded up $0.91 during midday trading on Friday, hitting $36.77. The company’s stock had a trading volume of 2,040,649 shares, compared to its average volume of 3,637,322. The firm has a market capitalization of $7.96 billion, a price-to-earnings ratio of 8.97, a price-to-earnings-growth ratio of 0.92 and a beta of 1.83. The business’s fifty day simple moving average is $37.76 and its two-hundred day simple moving average is $34.08. Bath & Body Works has a 1 year low of $26.20 and a 1 year high of $52.99.

Bath & Body Works Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 7th. Investors of record on Friday, February 21st will be issued a $0.20 dividend. The ex-dividend date of this dividend is Friday, February 21st. This represents a $0.80 annualized dividend and a dividend yield of 2.18%. Bath & Body Works’s dividend payout ratio is presently 19.51%.

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

Analyst Upgrades and Downgrades

Several analysts recently commented on BBWI shares. JPMorgan Chase & Co. upgraded Bath & Body Works from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $41.00 to $47.00 in a research report on Tuesday, February 18th. Barclays upgraded shares of Bath & Body Works from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $34.00 to $43.00 in a research report on Monday. Citigroup upgraded shares of Bath & Body Works from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $40.00 to $48.00 in a research report on Friday. Piper Sandler upped 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. Finally, Raymond James reissued an “outperform” rating and issued a $46.00 target price (up from $42.00) on shares of Bath & Body Works in a research note on Tuesday. Five equities research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. According to data from MarketBeat, Bath & Body Works currently has a consensus rating of “Moderate Buy” and a consensus price target of $45.38.

Bath & Body Works Company Profile

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.