BARINGTON Companies Management, LLC made a new investment in Bath & Body Works (NYSE:BBWI) during the third quarter of 2025. The fund purchased 125,000 shares, a position valued at $3.22 million, which constitutes 2.42% of its $133.17 million in total reportable assets as of September 30, 2025. This move is significant given BARINGTON's concentrated portfolio of only 12 stocks, further leaning into consumer discretionary names.
Despite the new investment, Bath & Body Works stock has been on a downward trend, underperforming the S&P 500 by 41.22 percentage points over the past year with a -27.15% total return. As of November 12, 2025, the shares were priced at $22.40. Analysts note that BARINGTON's position is relatively small at 2.4% of its assets, and given the stock's continued decline since the end of the quarter, it may take some time for the firm to see a positive return.
However, the stock's attractive valuation, with a price-to-earnings (P/E) ratio of 7 at the time of the filing, and a consistent annual dividend of $0.80 per share, yielding 3.6% (more than triple the S&P 500 average of 1.1%), likely drew BARINGTON's interest. Bath & Body Works reported trailing twelve-month revenue of $7.37 billion and net income of $699.00 million. The company focuses on personal care and home fragrance products for a broad demographic, generating revenue primarily through direct retail sales in North America and international licensing.
Bath & Body Works recently announced its second-quarter 2026 results, exceeding guidance with net sales of $1.5 billion, a 2.3% decrease year-over-year. Earnings per diluted share were $0.58, with adjusted earnings per diluted share at $0.62. The company also reported its first direct net sales growth since 2021. For the full year 2026, the company raised its earnings per diluted share guidance to $3.13 to $3.33 and adjusted earnings per diluted share guidance to $2.60 to $2.80, while narrowing net sales guidance to a decline between 4% and 2.5%. They expect to generate approximately $650 million in free cash flow for fiscal year 2026.
