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Earnings To Watch: Bath and Body Works (BBWI) Reports Q3 Results Tomorrow

BBWI Cover Image

Personal care and home fragrance retailer Bath & Body Works (NYSE:BBWI) will be announcing earnings results tomorrow before the bell. Here’s what you need to know.

Bath and Body Works missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.53 billion, down 2.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

Is Bath and Body Works a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Bath and Body Works’s revenue to grow 1.1% year on year to $1.58 billion, a reversal from the 2.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 per share.

Bath and Body Works Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bath and Body Works has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Bath and Body Works’s peers in the specialty retail segment, only Sally Beauty has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 1.5%. The stock traded up 7.1% on the results.

Read our full analysis of Sally Beauty’s earnings results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 3.7% on average over the last month. Bath and Body Works is up 7% during the same time and is heading into earnings with an average analyst price target of $42.76 (compared to the current share price of $31.51).

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