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Bath & Body Works, Inc. (BBWI), headquartered in Columbus, Ohio, is a specialty retailer in personal care and home fragrance products, offering a wide array of body care, soaps, and candles, with a market cap of $6.8 billion. The company is poised to announce its Q3 earnings before the market opens on Monday, Nov. 25.
Ahead of the event, analysts expect BBWI to report a profit of $0.46 per share, down 4.2% from $0.48 in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the past four quarters.
Its adjusted earnings of $0.37 per share for the last quarter surpassed the consensus estimate by 5.7%. Bath & Body Works' Q2 results exceeded earnings expectations, driven by improved gross margins and successful cost-saving initiatives.
For fiscal 2024, analysts expect BBWI to report an EPS of $3.18, down 2.8% from $3.27 in fiscal 2023.
BBWI stock is down 31.8% YTD, significantly underperforming the broader S&P 500 Index's ($SPX) 22.1% gains and the Vanguard Consumer Discretionary Index Fund ETF Shares' (VCR) 11.9% gain over the same time frame.
Shares of Bath & Body Works dipped 7% following its Q2 earnings report on Aug. 28, with net sales of $1.53 billion missing the $1.54 billion consensus. Plus, for fiscal 2025, the company has revised its guidance, now projecting net sales to decrease by 2% to 4% relative to the $7.43 billion in net sales achieved in fiscal 2023.
However, the company anticipates that in the third quarter of 2024, net sales will be flat and up by 2.5%. Additionally, Bath & Body Works is down over 3% after UBS lowered its price target from $52 to $38 on Aug. 29.
The consensus opinion on BBWI stock is moderately bullish, with an overall “Moderate Buy” rating. Of 18 analysts covering the stock, seven advise a “Strong Buy” rating, two indicate a “Moderate Buy,” and nine suggest a “Hold.”
BBWI's average analyst price target is $41, suggesting a potential upside of 39.2% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
