Bath and Body Works Earnings: What To Look For From BBWI
Personal care and home fragrance retailer Bath & Body Works (NYSE:BBWI) will be reporting earnings this Wednesday morning. Here’s what you need to know.
Bath and Body Works beat analysts’ revenue expectations last quarter, reporting revenues of $1.38 billion, down 3.2% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Bath and Body Works a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Bath and Body Works’s revenue to decline 3.4% year on year, a reversal from the 1.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Bath and Body Works has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Bath and Body Works’s peers in the specialty retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Warby Parker delivered year-on-year revenue growth of 9.8%, missing analysts’ expectations by 1%, and Sally Beauty reported flat revenue, in line with consensus estimates. Warby Parker traded down 9.6% following the results while Sally Beauty was up 10.6%.
Read our full analysis of Warby Parker’s results here and Sally Beauty’s results here.
Investors in the specialty retail segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Bath and Body Works is down 5.4% during the same time and is heading into earnings with an average analyst price target of $25.33 (compared to the current share price of $19.38).
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