Bath & Body Works 1Q 2026 Analysis

BBWI's 1Q results showed early signs of progress from its new strategy, but the underlying business remains pressured by declines in body care. Goldman Sachs maintains a Neutral rating with a $23 price target as sustainable growth remains elusive.

Key Takeaways

• 1.Top-line trends continue to decline y/y, primarily driven by mid-teen declines in the body care segment.
• 2.The 'Consumer First Formula' strategy is showing early benefits in soaps, sanitizers, and Amazon marketplace presence.
• 3.FY26 guidance was reiterated, but management cautioned that an inflection point for growth has not yet been reached.

Table of Contents

• Key Takeaways
• Estimate Changes
• Valuation & Risks
• Disclosure Appendix

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