Analysts expect earnings per share (EPS) of $0.46 and revenue of $1.42 billion, reflecting a 21% increase in earnings and a 3% rise in sales year-over-year.
The company’s stock has a 60% chance of rising post-earnings, with a historical median one-day increase of 4.8%.
BBWI faces challenges such as U.S. tariffs, sluggish discretionary spending, and increased competition, yet its financial metrics like the P/E ratio of 8.27 and earnings yield of 12.10% are key indicators for investors.
Bath & Body Works (NYSE: BBWI) is a well-known retailer specializing in personal care products, including fragrances, lotions, and candles. The company is set to release its quarterly earnings on May 29, 2025. Analysts expect earnings per share (EPS) of $0.46 and revenue of $1.42 billion. This anticipated performance reflects a 21% increase in earnings and a 3% rise in sales compared to the previous year.
The company’s stock has historically shown positive movement following earnings announcements, with a 60% chance of rising and a median one-day increase of 4.8%. The maximum recorded surge post-earnings is 25%. However, in the fourth quarter of 2024, BBWI faced challenges, including a 4% decline in net sales and an 18% drop in earnings per diluted share. These declines were attributed to a shifted fiscal calendar and reduced consumer demand.
Looking ahead, Bath & Body Works faces several challenges, including U.S. tariffs on Chinese imports, sluggish discretionary spending, and increased competition from lower-cost private-label options. Additionally, high interest rates and economic uncertainties continue to exert pressure on the company. Despite these challenges, the market is keenly watching to see if BBWI can surpass current estimates, as this could positively influence the stock’s price.
BBWI’s financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 8.27, indicating how the market values its earnings. Its price-to-sales ratio is about 0.89, suggesting the company’s market value relative to its revenue. The enterprise value to sales ratio is around 1.48, reflecting the company’s total valuation compared to its sales. The enterprise value to operating cash flow ratio is approximately 12.18, indicating how the company’s valuation compares to its cash flow from operations.
The company’s earnings yield is about 12.10%, providing insight into the return on investment for shareholders. BBWI has a negative debt-to-equity ratio of approximately -3.58, which may indicate a higher level of debt compared to its equity. Lastly, the current ratio is approximately 1.48, suggesting the company’s ability to cover its short-term liabilities with its short-term assets. These financial metrics are crucial for investors as they assess the company’s financial health and potential for future growth.
