Core Insights - Bath & Body Works (BBWI) is well-positioned to continue its earnings-beat streak, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 6.12% [1][3] Earnings Performance - For the last reported quarter, Bath & Body Works achieved earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, resulting in a surprise of 6.52% [2] - In the previous quarter, the company was expected to earn $0.35 per share but reported $0.37 per share, delivering a surprise of 5.71% [2] Earnings Estimates - Recent estimates for Bath & Body Works have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [3][6] - The current Earnings ESP for the company is +1.72%, reflecting increased analyst optimism regarding its near-term earnings potential [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [4] - Bath & Body Works holds a Zacks Rank of 2 (Buy), suggesting a high likelihood of another earnings beat in the upcoming report [6] Upcoming Earnings Report - The next earnings report for Bath & Body Works is anticipated to be released on February 27, 2025 [6]

Group 1 - The stock of Bath & Body Works, Inc. (BBWI) is experiencing significant attention due to high implied volatility in the options market, particularly the Feb. 21, 2025 $20 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Analysts have a positive outlook on Bath & Body Works, with the company holding a Zacks Rank 2 (Buy) in the Retail – Miscellaneous industry, which is in the top 10% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, three analysts have raised their earnings estimates for Bath & Body Works for the current quarter, resulting in an increase in the Zacks Consensus Estimate from $2.03 to $2.04 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from time decay [4]

Core Insights - Goldman Sachs analyst Kate McShane reiterated a Buy rating on Bath & Body Works Inc. (BBWI) with a price target of $52.00 [1] - The annual Candle Day sale took place on December 7-8, 2024, offering 3-wick candles at $9.95 each, consistent with the previous year [1] - The event lasted longer than in previous years and included both online and in-store sales, differing from the fully in-store experience in 2023 [2] Sales and Promotions - Customers were allowed to purchase up to 24 candles during the event, an increase from previous limits of 15 to 18 [2] - The loyalty program is significant for customer retention, linked to over 80% of BBWI's U.S. sales, with around 38 million active loyalty members as of Q3 2024 [3] - The retailer's app downloads peaked in December 2024, surpassing Sephora in the number of downloads [3] Customer Engagement - The app download trends indicate that the loyalty program is a strong driver of engagement and customer loyalty [4] - Free shipping was available on four out of five days during November and December 2024, compared to only two days in December 2023 [4] - The timing of Cyber Monday in December 2024 may have contributed to the increased shipping offers [4] Performance Metrics - BBWI's Net Promoter Score has improved sequentially since March 2024 [5] - The stock is considered undervalued, with potential upside as the company is expected to post sustainable top-line growth in the coming quarters [5] - As of the last check, BBWI shares were trading lower by 1.88% at $37.00 [5]

Group 1 - Building Benjamins is a free stock picking and market commentary investment newsletter published by Tradition Investment Management, LLC [1] - Benjamin Halliburton, the founder, has a notable background in investment, having founded Tradition Capital Management in 2000 and received multiple accolades including "PSN Manager of the Decade" for All-Cap in the 2000s and for Dividend Value in the 2010s [1] - Halliburton began his investment career at Merrill Lynch in 1986 and has been continuously involved in investing, earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1] Group 2 - Halliburton earned the Chartered Financial Analyst designation in 1994 and was recognized as the top-performing portfolio manager at Brundage, Story and Rose, where his "Disciplined Growth Strategy" outperformed the S&P 500 during the 1990s bull market [1] - He was the youngest partner at his firm and received high praise from senior managing partners, being called "the best investor I have ever met" [1]

Core Viewpoint - Bath & Body Works (BBWI) stock has seen a significant increase of 20% in the last month, currently trading at around $38 per share, with expectations for long-term growth due to strong demand and strategic investments [1][5]. Financial Performance - BBWI reported a 3% year-over-year sales growth in Q3, reaching $1.6 billion, driven by new store openings and increased online orders [4]. - The company achieved a gross profit of $700 million in Q3, up from $682 million the previous year, while operating income slightly decreased to $218 million from $221 million [4]. - Earnings per share for the quarter were $0.49, reflecting a 6% decline year-over-year [4]. Market Position and Strategy - BBWI has a strong loyalty program with over 38 million active members, contributing to approximately 80% of U.S. sales, which is advantageous for driving repeat purchases [2]. - The company plans to invest around $250 million in capital expenditures for FY 2024, focusing on opening new off-mall stores, remodeling existing locations, and enhancing technology and supply chain [1]. Future Projections - For fiscal year 2024, BBWI forecasts revenues of $7.3 billion, a 2% decline year-over-year, with adjusted earnings per share projected between $3.15 and $3.28 [5][6]. - The company raised its guidance for fiscal 2024, now expecting a net sales decline of -2.5% to -1.7%, an improvement from the previous forecast of -4% to -2% [6]. Valuation - BBWI is currently trading at nearly a 9x P/E multiple, which is below its historical average, indicating potential for multiple re-rating if growth exceeds expectations [2]. - The revised valuation for BBWI is set at $41 per share, based on an expected EPS of $3.27 and a 12.5x P/E multiple for FY 2024, suggesting the stock is undervalued at current levels [5].

It has almost been two years since I published my last article about Bath & Body Works (NYSE: BBWI ) (or “L Brands” as the company was previously known before spinning off Victoria’s Secret in 2021). In the article, I wroteMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (fr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________ FORM 10-Q _________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 2, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8344 _________________________________ BATH & BODY WO ...

Goldman Sachs analyst Kate McShane reiterated the Buy rating on Bath & Body Works, Inc. BBWI, with a price forecast of $52.The company’s third-quarter adjusted earnings per share of 49 cents beat the analyst consensus of 47 cents. Quarterly sales of $1.610 billion, a growth of 3.1% year-over-year, came above the street view of $1.579 billion.The gross margin was 43.5%, down 20 bps YoY, and the operating margin was 13.5% compared to 14.2% YoY.The analyst projects the company well-positioned to offer affordab ...

Bath & Body Works, Inc. BBWI reported better-than-expected third-quarter results and raised its 2024 outlook on Monday.BBWI’s third-quarter adjusted earnings per share of 49 cents, beating the analyst consensus of 47 cents. Quarterly sales of $1.610 billion, a growth of 3.1% year-over-year, above the street view of $1.579 billion.Gina Boswell, CEO of Bath & Body Works, commented, “Our strong results exceeded the high end of our net sales and earnings per diluted share guidance. As a result, we are raising o ...

As the United States gross domestic product (GDP) figures for the quarter recently suggested that the American consumer was mostly responsible for carrying economic growth, investors might wonder whether it is still worth it to look into buying some retail stocks in the cyclical space, or whether the wave is toward its last inning and might roll over soon. Well, the answer can only be found in the fundamentals and price action, where companies report their quarterly results, and markets react by either puni ...