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

Bath & Body Works (NYSE:BBWI) announced its quarterly earnings results on Thursday. The company reported $2.09 EPS for the quarter, beating the consensus estimate of $2.04 by $0.05, Zacks reports. Bath & Body Works had a negative return on equity of 44.03% and a net margin of 12.43%. 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

BBWI stock traded up $0.91 during midday trading on Friday, hitting $36.77. 2,040,649 shares of the stock traded hands, compared to its average volume of 3,637,322. Bath & Body Works has a 1-year low of $26.20 and a 1-year high of $52.99. The stock’s fifty day simple moving average is $37.76 and its 200-day simple moving average is $34.08. The firm has a market cap of $7.96 billion, a P/E ratio of 8.97, a PEG ratio of 0.92 and a beta of 1.83.

Bath & Body Works Announces Dividend

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

Wall Street Analyst Weigh In

BBWI has been the subject of several recent research reports. Citigroup upgraded shares of Bath & Body Works from a “neutral” rating to a “buy” rating and boosted their price target for the company from $40.00 to $48.00 in a report on Friday. Morgan Stanley reduced their price target on Bath & Body Works from $51.00 to $48.00 and set an “overweight” rating for the company in a research report on Thursday, November 21st. Piper Sandler raised their target price 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. JPMorgan Chase & Co. raised shares of Bath & Body Works from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $41.00 to $47.00 in a report on Tuesday, February 18th. Finally, Cowen reiterated a “buy” rating on shares of Bath & Body Works in a report on Thursday. Five equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company. According to MarketBeat, Bath & Body Works currently has a consensus rating of “Moderate Buy” and an average price target of $45.38.

Bath & Body Works declared that its board has initiated a stock repurchase plan on Thursday, February 27th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to repurchase up to 6.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

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.