Core Insights - Bath & Body Works, Inc. announced a comprehensive transformation plan called the Consumer First Formula aimed at revitalizing the brand and driving sustainable long-term growth [2][3] - The company reported third-quarter 2025 results with net sales of $1.594 billion, a decrease of 1% compared to the same quarter in 2024, and earnings per diluted share of $0.37, down from $0.49 [9][10] Strategic Transformation Plan - The Consumer First Formula focuses on four key priorities: creating disruptive and innovative products, reigniting the brand, winning in the marketplace, and operating with speed and efficiency [3] - The plan aims to attract younger consumers and unlock new growth opportunities [2] Financial Performance - Third-quarter net sales were $1,594 million, down from $1,610 million in the same quarter last year, representing a 1% decline [10][28] - Earnings per diluted share for the third quarter were $0.37, compared to $0.49 in the previous year [10][32] - Operating income decreased to $161 million from $218 million year-over-year [10][22] Guidance and Outlook - The company lowered its fourth-quarter 2025 net sales guidance to a decline in high single digits compared to $2,788 million in Q4 2024 [12] - Full-year 2025 net sales guidance was revised from a growth of 1.5% to 2.7% to a decline in low single digits compared to $7,307 million in fiscal 2024 [13] - The expected earnings per diluted share for full-year 2025 is now at least $2.83, down from $3.61 in fiscal 2024 [13] Cost Savings Initiatives - The company plans to deliver $250 million in cost savings over two years, with over half identified for 2026, to fund revenue-generating initiatives [7][9]

Bath & Body Works, Inc. (NYSE:BBWI) will release earnings results for the third quarter, before the opening bell on Thursday, Nov. 20.Analysts expect the Columbus, Ohio-based company to report quarterly earnings of 40 cents per share, down from 49 cents per share in the year-ago period. The consensus estimate for Bath & Body Works' quarterly revenue is $1.63 billion. Benzinga Pro data shows $1.61 billion in quarterly revenue a year ago.On Aug. 28, Bath & Body Works reported second-quarter fiscal 2025 net sa ...

Core Viewpoint - Analysts forecast that Bath & Body Works (BBWI) will report quarterly earnings of $0.40 per share, reflecting an 18.4% year-over-year decline, while revenues are expected to reach $1.63 billion, a 1% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been adjusted downward by 1.2% over the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Geographic Net Sales- Stores - U.S. and Canada' to reach $1.26 billion, representing a year-over-year increase of 3.1% [5]. - 'Geographic Net Sales- International' is expected to be $73.07 million, indicating a 5.9% increase from the year-ago quarter [5]. - 'Geographic Net Sales- Direct - U.S. and Canada' is anticipated to be $309.39 million, reflecting a decline of 3.6% from the prior-year quarter [6]. Store Metrics - Total company-operated stores for Bath & Body Works are projected to be 1,915, up from 1,885 in the previous year [6]. - The average selling square feet for company-operated U.S. stores is estimated at 5.13 million, compared to 5.04 million in the same quarter last year [7]. - Total company-operated stores in the U.S. are expected to be 1,801, an increase from 1,773 reported in the same quarter last year [8]. Market Performance - Bath & Body Works shares have shown a return of -17% over the past month, contrasting with the Zacks S&P 500 composite's +1.5% change, indicating expected underperformance in the near future [9].

Core Insights - Investors in Bath & Body Works, Inc. (BBWI) should monitor stock movements due to high implied volatility in options, particularly the Nov 21, 2025 $17.50 Call [1] Company Overview - Bath & Body Works currently holds a Zacks Rank 4 (Sell) within the Retail – Miscellaneous industry, which is in the top 36% of the Zacks Industry Rank [3] - Over the last 60 days, one analyst has raised earnings estimates for the current quarter, while three have lowered theirs, resulting in a consensus estimate decrease from 42 cents to 40 cents per share [3] Market Sentiment - The high implied volatility suggests that options traders anticipate significant price movement for Bath & Body Works shares, indicating potential upcoming events that could lead to a rally or sell-off [2][4] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of options value if the stock does not move as expected [4]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Bath & Body Works despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Bath & Body Works is expected to report quarterly earnings of $0.40 per share, reflecting an 18.4% decrease year-over-year, while revenues are projected to be $1.63 billion, a 1.2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +1.26% for Bath & Body Works, suggesting recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Bath & Body Works met the expected earnings of $0.37 per share, resulting in no surprise, and has beaten consensus EPS estimates three times over the last four quarters [13][14]. Market Reaction Factors - The stock's movement may not solely depend on earnings results, as other factors can influence investor sentiment, leading to potential gains or losses regardless of earnings performance [15][17].

Core Viewpoint - Bath & Body Works (BBWI) has seen a significant decline in stock price since its peak in November 2021, raising questions about its valuation and future growth potential [4][5][6]. Financial Performance - In fiscal 2021, Bath & Body Works reported sales of $7.88 billion, which was 23% higher than 2020 and 46% higher than 2019 [3]. - The company's net income for 2021 was $1.33 billion, translating to earnings of $4.88 per share [3]. - The stock's price-to-earnings (P/E) ratio was 16.8 times its earnings in November 2021, which is considered reasonable for a company with double-digit growth [2]. Market Position - The stock hit a 20-year high of $82 in November 2021 but has since fallen to one-quarter of that value, indicating a significant loss of market confidence [6]. - BBWI's stock has reached 25 new 52-week lows in the past year, reflecting ongoing challenges in the market [5][6]. Growth Trends - The compound annual growth rate (CAGR) for sales was 9.3% from 2015 to 2018, increased to 18.2% from 2018 to 2021, but has since declined to -2.5% from 2021 to 2024 [7]. - Despite the decline, projected sales for 2024 are expected to be $7.31 billion, which is still 35% higher than 2019 sales of $5.41 billion [8]. Operational Metrics - In Q2 2025, Bath & Body Works reported a gross margin of 43.3%, which is an improvement of 90 basis points year-over-year, but its operating margin was only 12.4% [9]. - The company has a total debt of $4.99 billion, which is 109% of its market cap, raising concerns about its financial health [13]. Strategic Focus - The new CEO, Daniel Heaf, has been in position for six months and is expected to implement strategies aimed at accelerating growth and enhancing operational excellence [9][10]. - The company is focusing on three priority areas: top-line growth, operational excellence, and deploying cash flow for growth and shareholder value [10]. Capital Allocation - In the first half of the fiscal year, Bath & Body Works paid out $85 million in dividends and repurchased $254 million of its shares, indicating a commitment to returning value to shareholders [14]. - The company repaid $522 million of its debt in 2024 but has not made significant debt repayments in 2025 so far [16]. Analyst Sentiment - Among 17 analysts covering BBWI, 11 have rated it a Buy, with no sell recommendations, suggesting a generally positive outlook despite current challenges [12].

Upgrades - JPMorgan upgraded Outfront Media (OUT) to Overweight from Neutral with a price target of $25, up from $19, citing the out-of-home channel as the most resilient traditional advertising market with improved momentum in Q3 [2] - Guggenheim upgraded Grail (GRAL) to Buy from Neutral with a price target of $100, noting that while Galleri is not a perfect test, it remains the leading commercially available MCED test with a significant data moat [3] - Piper Sandler upgraded Floor & Decor (FND) to Overweight from Neutral with a price target of $80, up from $75, highlighting potential for comparable sales improvement by Q1 of 2026 [4] - KeyBanc upgraded Progyny (PGNY) to Overweight from Sector Weight with a price target of $30, indicating limited share downside and several positive catalysts over the next 12 months [4] - KeyBanc upgraded AT&T (T) to Overweight from Sector Weight with a price target of $30, attributing the recent share pullback to overblown wireless competition concerns [5] Downgrades - Raymond James downgraded Bath & Body Works (BBWI) to Market Perform from Outperform, stating that the company's growth will be below its long-term potential due to slow improvements in digital capabilities and distribution [6] - Wolfe Research downgraded Intellia Therapeutics (NTLA) to Peer Perform from Outperform, citing safety issues with nexiguran ziclumeran as a hindrance to the bull thesis [6] - Raymond James double downgraded Brighthouse Financial (BHF) to Market Perform from Strong Buy, referencing the announcement of its acquisition deal for $70 per share [6] - Raymond James double downgraded Centerspace (CSR) to Market Perform from Strong Buy, noting that while the portfolio is attractive for potential buyers, the recent rally has closed the valuation gap with multifamily peers [6] - Northland downgraded QuickLogic (QUIK) to Market Perform from Outperform, maintaining a price target of $5.95, after the company reported revenue in line with guidance and uncertainty regarding a $3M contract [6]

Core Viewpoint - Bath & Body Works, Inc. is set to report its third quarter 2025 financial results on November 20, 2025, before market open, with a conference call scheduled for 8:30 a.m. ET to discuss the results and provide a business update [1]. Company Overview - Bath & Body Works is a global leader in personal care and home fragrance, offering popular products such as fine fragrance mist, body lotion, body cream, 3-wick candles, home fragrance diffusers, and liquid hand soap [4]. - The company operates 1,904 company-operated locations in the U.S. and Canada, along with 537 international franchised locations, and has an online storefront at bathandbodyworks.com as of August 2, 2025 [4]. - The company's supply chain is predominantly U.S.-based, allowing it to deliver quality products at affordable prices through agility and innovation [4].

Core Insights - Bath & Body Works has announced the appointment of Maly Bernstein as Chief Commercial Officer and Samantha Charleston as Chief Human Resources Officer, effective November 12, 2025, to enhance leadership and drive transformation [1][2] Leadership Appointments - Maly Bernstein brings extensive experience in multi-channel retail leadership, having previously served as CEO of Bluemercury, where she achieved consecutive quarters of comparable sales growth [2][3] - Samantha Charleston has over two decades of HR leadership experience, previously serving as Chief Human Resources Officer at Americold, where she transformed a global workforce of 15,000 employees [3][4] Strategic Vision - The new leadership team aims to create compelling retail experiences and strengthen the company's culture and talent to support growth [3][4] - CEO Daniel Heaf emphasized the importance of having a next-generation leadership team to drive growth across the marketplace [2] Company Overview - Bath & Body Works is a global leader in personal care and home fragrance, with a supply chain that allows for agility and innovation [5] - The company operates 1,904 company-operated locations in the U.S. and Canada, along with 537 international franchised locations and an online storefront [5]

Core Insights - Bath & Body Works has appointed Maly Bernstein as its new chief commercial officer, effective November 12, marking a new position within the company [1][2] - Bernstein has a strong background in multi-channel retail leadership, having previously served as CEO of Bluemercury and held positions at CVS Health and McKinsey & Company [2] - The company also appointed Samantha Charleston as its chief human resources officer, who joins from Americold [3] Company Strategy - Bath & Body Works has introduced a new store design called Gingham+, aimed at enhancing customer experience with updated layouts and technology features to attract Gen Z shoppers [4] - The retailer is expanding its reach by offering top-selling products in 600 college campus stores across the country [4] Financial Performance - In its latest earnings report, Bath & Body Works reported net sales of $1.5 billion, reflecting a year-over-year increase of 1.5%, while net income decreased by nearly 58% to $64 million [5] - The company's focus areas include enhancing its digital experience, improving product efficacy, and expanding its distribution network [5]