Bath and Body Works (BBWI) Q1 Earnings Report Preview: What To Look For

Petr Huřťák /
2024/06/03 3:01 am EDT

Personal care and home fragrance retailer Bath & Body Works (NYSE:BBWI) will be reporting earnings tomorrow before market hours. Here's what investors should know.

Bath and Body Works beat analysts' revenue expectations by 2.6% last quarter, reporting revenues of $2.91 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the next quarter.

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 decline 2.1% year on year to $1.37 billion, improving from the 3.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Bath and Body Works Total Revenue

The majority of analysts covering the company have 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 only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.

Looking at Bath and Body Works's peers in the specialty retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Ulta delivered year-on-year revenue growth of 3.5%, meeting analysts' expectations, and Sally Beauty reported a revenue decline of 1.1%, in line with consensus estimates. Ulta traded up 2.5% following the results while Sally Beauty was down 1.4%.

Read our full analysis of Ulta's results here and Sally Beauty's results here.

There has been positive sentiment among investors in the specialty retail segment, with share prices up 8.3% on average over the last month. Bath and Body Works is up 9.6% during the same time and is heading into earnings with an average analyst price target of $52.7 (compared to the current share price of $51.9).

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