Bath & Body Works, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Bath & Body Works, Inc. (NYSE:BBWI) released its second-quarter result to the market. The early response was not positive, with shares down 6.0% to US$29.21 in the past week. Revenues were in line with forecasts, at US$1.5b, although statutory earnings per share came in 19% below what the analysts expected, at US$0.30 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Bath & Body Works' 14 analysts currently expect revenues in 2026 to be US$7.48b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 3.0% to US$3.42 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$7.48b and earnings per share (EPS) of US$3.48 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Bath & Body Works

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$40.67. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Bath & Body Works at US$61.00 per share, while the most bearish prices it at US$32.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Bath & Body Works' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.9% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.8% per year. Although Bath & Body Works' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bath & Body Works going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Bath & Body Works (1 is potentially serious!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.