Bath & Body Works Q1 Earnings Announcement Scheduled
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 45 minutes ago
0mins
Source: seekingalpha
- Earnings Release Date: Bath & Body Works (BBWI) is set to announce its Q1 earnings on May 27 before market open, with consensus EPS estimate at $0.29 and revenue expected at $1.36 billion, reflecting a 4.2% year-over-year decline, indicating challenges during its transformation phase.
- Historical Performance Review: Over the past two years, BBWI has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating resilience amidst market fluctuations, although current expectations indicate a trend of declining sales.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 4 upward revisions and 7 downward revisions, while revenue estimates experienced 9 upward revisions and 2 downward revisions, reflecting mixed market sentiment regarding the company's future performance, which could impact investor confidence.
- Non-GAAP Financial Performance: Bath & Body Works reported a non-GAAP EPS of $2.05, beating estimates by $0.28, with revenue of $2.72 billion exceeding expectations by $110 million, indicating that the company still shows strength in certain areas despite overall poor sales forecasts.
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to rise
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 17.760
Low
15.00
Averages
20.14
High
26.00
Current: 17.760
Low
15.00
Averages
20.14
High
26.00
About BBWI
Bath & Body Works, Inc. is a global omnichannel retailer focused on personal care and home fragrance. The Company offers a range of fragrances for the body and home, including selling collections for 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions and body creams. It delivers customers their fragrances in multiple forms and categories. The Company sells merchandise through its retail stores in the United States and Canada, and through its Websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. It provides in-store experiences at more than 1,890 Company-operated Bath & Body Works locations in the United States and Canada, more than 525 international franchised locations and an online storefront at bathandbodyworks.com. Additionally, it offers a buy online pick-up in-store (BOPIS) option.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bath & Body Works Q1 Earnings Announcement Scheduled
- Earnings Release Date: Bath & Body Works (BBWI) is set to announce its Q1 earnings on May 27 before market open, with consensus EPS estimate at $0.29 and revenue expected at $1.36 billion, reflecting a 4.2% year-over-year decline, indicating challenges during its transformation phase.
- Historical Performance Review: Over the past two years, BBWI has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating resilience amidst market fluctuations, although current expectations indicate a trend of declining sales.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 4 upward revisions and 7 downward revisions, while revenue estimates experienced 9 upward revisions and 2 downward revisions, reflecting mixed market sentiment regarding the company's future performance, which could impact investor confidence.
- Non-GAAP Financial Performance: Bath & Body Works reported a non-GAAP EPS of $2.05, beating estimates by $0.28, with revenue of $2.72 billion exceeding expectations by $110 million, indicating that the company still shows strength in certain areas despite overall poor sales forecasts.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
Wall Street Bullish on BBWI and Other Stocks Despite Concerns
- BBWI Sales Weakness: Bath and Body Works (BBWI) has experienced declining same-store sales over the past two years, with projected sales down 2.9% over the next year, indicating limited opportunities for new store openings in its core markets, which could impact future profitability.
- DAR Revenue Decline: Darling Ingredients (DAR) has seen a 3.2% annual revenue decline over the past three years, and its low gross margin of 23.8% reflects intense competition and poor unit economics, leading to a 25.6% annual contraction in earnings per share, putting pressure on stock prices.
- NESR Rising Costs: NESR's modest revenue base of $1.43 billion limits its fixed cost leverage, with a gross margin of only 12.7%, and costs have risen faster than revenue over the past five years, causing a 48.4 percentage point decline in EBITDA margin, affecting its investment capacity.
- Market Opportunity Assessment: While Wall Street's price targets suggest potential upside for these stocks, analysts express caution regarding the fundamentals of BBWI, DAR, and NESR, advising investors to consider more promising investment opportunities.
See More
Bath & Body Works Declares Quarterly Dividend
- Quarterly Dividend Announcement: Bath & Body Works has declared a quarterly dividend of $0.20 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Analysis: The forward yield of 4.46% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Shareholder Rights Assurance: The dividend will be payable on June 19, with a record date of June 5 and an ex-dividend date also on June 5, ensuring that existing shareholders receive their earnings promptly.
- Dividend Growth Trend: The company's provided dividend scorecard and yield chart highlight its ongoing potential for dividend growth, demonstrating management's confidence in future profitability.
See More
Bath & Body Works to Report Q1 2026 Financial Results
- Earnings Report Schedule: Bath & Body Works plans to release its Q1 2026 financial results before market open on May 27, 2026, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 8:30 AM ET on the same day, led by CEO Daniel Heaf and CFO Eva Boratto, to discuss financial results and provide a business update, aiming to bolster investor confidence.
- Supplemental Materials Release: Approximately 90 minutes before the call, supplemental materials will be posted on the company's investor website, ensuring investors are well-informed about the upcoming financial information and enhancing information transparency.
- Global Business Overview: Bath & Body Works operates over 1,900 stores in the U.S. and Canada and more than 500 international locations, showcasing its leadership in the personal care and home fragrance market, further solidifying brand influence.
See More
Michael Burry Sells Entire GameStop Stake Due to Acquisition Risks
- Investment Decision Shift: Michael Burry announced on his Substack that he sold his entire GameStop stake due to the company's acquisition proposal for eBay, which he believes undermines his investment thesis, particularly with a debt-to-EBITDA ratio exceeding 5x, indicating his concerns over high leverage.
- Acquisition Proposal Details: GameStop made an unsolicited offer to acquire eBay for $125 per share in cash and stock, valuing the online marketplace at approximately $55.5 billion; however, the feasibility of financing this deal has raised significant market skepticism despite the substantial premium over recent trading levels.
- Market Reaction: Following the acquisition announcement, GameStop's shares fell about 10%, reflecting investor doubts regarding the deal's viability and concerns over the company's financial health, with its market capitalization nearing $12 billion.
- Financial Structure Risks: Burry highlighted that if the acquisition were to proceed at the proposed valuation, GameStop's leverage could rise to approximately 7.7 times, bordering on distressed levels, and he referenced companies like Wayfair and Carvana that have struggled under similar debt burdens, emphasizing the risks associated with high leverage.
See More
Bath & Body Works Q1 Earnings Announcement Scheduled
- Earnings Release Date: Bath & Body Works (BBWI) is set to announce its Q1 earnings on May 27 before market open, with consensus EPS estimate at $0.29 and revenue expected at $1.36 billion, reflecting a 4.2% year-over-year decline, indicating challenges during its transformation phase.
- Historical Performance Review: Over the past two years, BBWI has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating resilience amidst market fluctuations, although current expectations indicate a trend of declining sales.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 4 upward revisions and 7 downward revisions, while revenue estimates experienced 9 upward revisions and 2 downward revisions, reflecting mixed market sentiment regarding the company's future performance, which could impact investor confidence.
- Non-GAAP Financial Performance: Bath & Body Works reported a non-GAAP EPS of $2.05, beating estimates by $0.28, with revenue of $2.72 billion exceeding expectations by $110 million, indicating that the company still shows strength in certain areas despite overall poor sales forecasts.
See More
Wall Street Trading Week Outlook and Focus
- Salesforce Earnings Outlook: Salesforce is set to report earnings on Wednesday, with market concerns about its AI business still prevalent; analysts expect revenue of $11.05 billion and EPS of $3.12, and strong revenue growth could alleviate worries about slowing growth in its legacy business.
- Costco Membership Renewal Challenges: Costco will report earnings on Thursday, with expected revenue of $69.73 billion and EPS of $4.93; while high oil prices may pressure profit margins, its membership model and bulk selling strategy are likely to attract consumers, especially during periods of rising gas prices.
- Economic Data Focus: The personal consumption expenditures (PCE) price index will be released on Thursday, with a year-over-year increase expected at 3.8% and a core increase of 3.3%, which will influence the Federal Reserve's rate hike decisions, leaving the market uncertain about future rate changes.
- Investor Conference Season: This week marks the start of investor conference season, with Boeing, Johnson & Johnson, and others attending the Bernstein Strategic Decisions Conference, where analyst questions may reveal insights into market perceptions of company futures, making it a key event to watch.
See More
Wall Street Bullish on BBWI and Other Stocks Despite Concerns
- BBWI Sales Weakness: Bath and Body Works (BBWI) has experienced declining same-store sales over the past two years, with projected sales down 2.9% over the next year, indicating limited opportunities for new store openings in its core markets, which could impact future profitability.
- DAR Revenue Decline: Darling Ingredients (DAR) has seen a 3.2% annual revenue decline over the past three years, and its low gross margin of 23.8% reflects intense competition and poor unit economics, leading to a 25.6% annual contraction in earnings per share, putting pressure on stock prices.
- NESR Rising Costs: NESR's modest revenue base of $1.43 billion limits its fixed cost leverage, with a gross margin of only 12.7%, and costs have risen faster than revenue over the past five years, causing a 48.4 percentage point decline in EBITDA margin, affecting its investment capacity.
- Market Opportunity Assessment: While Wall Street's price targets suggest potential upside for these stocks, analysts express caution regarding the fundamentals of BBWI, DAR, and NESR, advising investors to consider more promising investment opportunities.
See More
Bath & Body Works Declares Quarterly Dividend
- Quarterly Dividend Announcement: Bath & Body Works has declared a quarterly dividend of $0.20 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Analysis: The forward yield of 4.46% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Shareholder Rights Assurance: The dividend will be payable on June 19, with a record date of June 5 and an ex-dividend date also on June 5, ensuring that existing shareholders receive their earnings promptly.
- Dividend Growth Trend: The company's provided dividend scorecard and yield chart highlight its ongoing potential for dividend growth, demonstrating management's confidence in future profitability.
See More
Bath & Body Works to Report Q1 2026 Financial Results
- Earnings Report Schedule: Bath & Body Works plans to release its Q1 2026 financial results before market open on May 27, 2026, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 8:30 AM ET on the same day, led by CEO Daniel Heaf and CFO Eva Boratto, to discuss financial results and provide a business update, aiming to bolster investor confidence.
- Supplemental Materials Release: Approximately 90 minutes before the call, supplemental materials will be posted on the company's investor website, ensuring investors are well-informed about the upcoming financial information and enhancing information transparency.
- Global Business Overview: Bath & Body Works operates over 1,900 stores in the U.S. and Canada and more than 500 international locations, showcasing its leadership in the personal care and home fragrance market, further solidifying brand influence.
See More
Michael Burry Sells Entire GameStop Stake Due to Acquisition Risks
- Investment Decision Shift: Michael Burry announced on his Substack that he sold his entire GameStop stake due to the company's acquisition proposal for eBay, which he believes undermines his investment thesis, particularly with a debt-to-EBITDA ratio exceeding 5x, indicating his concerns over high leverage.
- Acquisition Proposal Details: GameStop made an unsolicited offer to acquire eBay for $125 per share in cash and stock, valuing the online marketplace at approximately $55.5 billion; however, the feasibility of financing this deal has raised significant market skepticism despite the substantial premium over recent trading levels.
- Market Reaction: Following the acquisition announcement, GameStop's shares fell about 10%, reflecting investor doubts regarding the deal's viability and concerns over the company's financial health, with its market capitalization nearing $12 billion.
- Financial Structure Risks: Burry highlighted that if the acquisition were to proceed at the proposed valuation, GameStop's leverage could rise to approximately 7.7 times, bordering on distressed levels, and he referenced companies like Wayfair and Carvana that have struggled under similar debt burdens, emphasizing the risks associated with high leverage.
See More
