Bath & Body Works rallies after Q1 results beat guidance, helped by litigation-settlement gain

Bath & Body Works (BBWI) is up 10.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The shares appear to be rising after the company posted first-quarter results that exceeded its own guidance and topped market expectations, prompting investors to re-rate the near-term earnings outlook. The quarter also benefited from a sizable pre-tax gain tied to settlements in payment card interchange fee litigation, which boosted reported profitability.

Details:

In its quarterly earnings release, the company reported Q1 net sales of $1.378 billion (down about 3% year over year) and earnings per diluted share of $0.90, with adjusted EPS of $0.32, both described as above guidance.

Reported results included an $88 million pre-tax gain (net of legal fees) related to favorable settlements of payment card interchange fee litigation; adjusted figures excluded this and other items.

Management maintained full-year 2026 guidance (including adjusted EPS of $2.40 to $2.65) and issued Q2 EPS guidance of $0.20 to $0.25 alongside a forecast for Q2 net sales to decline 5% to 3% year over year.

The company also disclosed a CFO transition, with Eva Boratto set to step down effective June 12 and Tom Javitch named interim CFO while a search is conducted.

Sources:

Bath & Body Works (press release), Reuters, Bath & Body Works Investor Relations

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

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$BBWI Hedge Fund Activity

We have seen 282 institutional investors add shares of $BBWI stock to their portfolio, and 276 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

VICTORY CAPITAL MANAGEMENT INC removed 7,535,406 shares (-88.5%) from their portfolio in Q4 2025, for an estimated $151,310,952
JPMORGAN CHASE & CO removed 6,057,381 shares (-91.3%) from their portfolio in Q4 2025, for an estimated $121,632,210
COOPER CREEK PARTNERS MANAGEMENT LLC removed 5,006,959 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $100,539,736
D. E. SHAW & CO., INC. added 4,844,144 shares (+523.6%) to their portfolio in Q4 2025, for an estimated $97,270,411
FMR LLC added 3,944,735 shares (+23.3%) to their portfolio in Q1 2026, for an estimated $73,648,202
RENAISSANCE TECHNOLOGIES LLC added 2,455,500 shares (+885.7%) to their portfolio in Q1 2026, for an estimated $45,844,185
FOREST AVENUE CAPITAL MANAGEMENT LP removed 2,211,826 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $41,294,791

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$BBWI Price Targets

Multiple analysts have issued price targets for $BBWI recently. We have seen 7 analysts offer price targets for $BBWI in the last 6 months, with a median target of $24.0.

Here are some recent targets:

Jay Sole from UBS set a target price of $19.0 on 05/20/2026
Jonna Kim from TD Cowen set a target price of $20.0 on 05/18/2026
Anna Andreeva from Piper Sandler set a target price of $20.0 on 05/15/2026
Dana Telsey from Telsey Advisory Group set a target price of $25.0 on 03/05/2026
Adrienne Yih from Barclays set a target price of $25.0 on 03/05/2026
Paul Lejuez from Citigroup set a target price of $25.0 on 02/17/2026
Sydney Wagner from Jefferies set a target price of $24.0 on 01/14/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.