Analyst firm Raymond James gives Bath & Body Works (NYSE: BBWI) a "Market Perform" rating, which suggests a "hold" action on the stock. This investment outlook indicates that analysts expect the stock performance to be in line with the broader market, without significant gains or losses. Bath & Body Works is a global retailer specializing in personal care and home fragrance products.
This neutral investment outlook comes even as Bath & Body Works announced first-quarter results that surpassed analyst estimates. The company reported quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.29. Additionally, its revenue of $1.38 billion for the quarter that ended in April 2026 also exceeded consensus forecasts.
However, these figures represent a decline from the previous year. In the same quarter a year ago, Bath & Body Works earned $0.49 per share and generated revenue of $1.42 billion. This year-over-year drop in both earnings and revenue helps explain why the analyst rating remains neutral despite the company beating recent expectations.
The company is currently overhauling its business strategy to return to growth, as highlighted by The Wall Street Journal. Bath & Body Works reaffirmed its full-year 2026 guidance, projecting a net sales decline between 2.5% and 4.5%. CEO Daniel Heaf stated that while results exceeded guidance, they are still below the brand's potential.
Adding to a period of transition, Chief Financial Officer Eva Boratto will step down on June 12. At the time of the rating, Bath & Body Works shares were trading at $17.73. The company has a market capitalization of approximately $3.57 billion, which is the total value of all its shares.
