Bath & Body Works, Inc. (BBWI)
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-09
$17.71-6.30%
Close 2026-09-09 · 1-day change
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-09
Warn: Primary pillar under pressure — Revenue remains near $7.3 billion in fiscal 2026: FY26 rev guide $7.29B vs $7.29B target; Q2 rev -2.3% YoY.
Bath & Body Works keeps steady dividend payouts at $0.20 per share. Cash from operations rose to $244 million in Q1 2026. The company aims for $600 million free cash flow in 2026. Partnerships and new products support sales growth.
Sales declined 3% year-over-year in Q1 2026. Body care sales are weakening, pressuring cash flow. Management changes and sector headwinds add risk.
The price is about 52% below our fair value near $43. Analysts expect about 1% revenue decline. Our value is well above the Street median, reflecting optimism on cash flow and dividends.
Breaks if: cash from operations falls below $188 million in any quarter after Q1 2026
Breaks if: dividend per share falls below $0.20 in any quarter of 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on executing a transformation strategy. The current thesis state is intact, as recent financial performance remains strong despite challenges in the Consumer Discretionary sector.
The market currently prices BBWI as cheap compared to its peers, with a notable expectations gap. This suggests that investors may not fully anticipate the potential benefits from the company's transformation efforts.
Management's execution of the Consumer First Formula is showing mixed results, with some early signs of improvement despite recent sales declines. The company is on track to generate approximately $600 million in free cash flow for the year, which supports its financial stability.
The long-term outlook hinges on several factors, including the company's ability to maintain guidance and manage inflation risks. Additionally, positive earnings from major sector players could provide momentum for BBWI.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the company's outlook. However, weak underlying demand challenges the execution of its growth strategy.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Continue to maintain a consistent dividend payout to shareholders.
Breaks if: free cash flow falls below $500 million in FY2026
Breaks if: revenue falls below $7.0 billion in FY2026
Overall, BBWI's trajectory appears to be stable as it navigates challenges while focusing on transformation. Not investment advice.