Bath & Body Works Earnings to Fall Amid Mixed Analyst Sentiment

Bath & Body Works is facing significant scrutiny as it prepares to report its Q2 earnings on August 26. Analysts expect the company's earnings per share (EPS) to drop by 35% year-over-year, from $0.37 in the prior period to just $0.24.

The consensus estimate for BBWI's quarterly revenue is $1.50 billion, down from $1.55 billion reported last year. This decline has already taken a toll on the company's stock price, which fell 8.3% to $17.58 ahead of the release.

Despite the mixed analyst sentiment, with some firms like Goldman Sachs downgrading the stock to Sell and others, such as Citigroup, upgrading it to Buy, Bath & Body Works is launching a new Reserve Collection home fragrance franchise designed to integrate scent with modern decor.