Bath & Body Works is scheduled to report second-quarter earnings on August 26, and options traders are positioning for a sharp move after the results. The options market is pricing in an implied move of about 11.42% in either direction, a sign that the report could matter for near-term sentiment even without a broader shift in the company’s long-term outlook.

Bath & Body Works, Inc. (BBWI) is trading around $19.38. The stock is down nearly 2% year to date, but it has recovered some ground over the past three months, rising about 8%.

The company’s post-earnings performance has been uneven. After its May 27, 2026 report, the shares climbed 9.70%. By contrast, following the November 2025 earnings release, the stock fell 24.81%. That track record underscores the volatility around BBWI heading into this report.

Wall Street is expecting second-quarter earnings per share of $0.24, compared with $0.37 in the same period a year earlier. Revenue is projected at about $1.5 billion, slightly below the $1.54 billion reported last year.

The company has missed Wall Street’s revenue estimates several times over the past two years, so analysts will be watching closely to see whether that pattern continues. For a retailer like Bath & Body Works, the combination of traffic, demand trends, and execution on promotions can quickly shape how investors read the quarter.

What analysts are watching

Revenue is expected to decline about 3.4% year over year this quarter, reversing the 1.5% growth posted in Q2 last year. That outlook gives the upcoming report a cautious tone.

Analysts covering BBWI have largely kept their estimates unchanged over the past 30 days, suggesting the Street is not anticipating a major surprise. Even so, the specialty retail sector has delivered mixed results recently.

Among peers, Warby Parker reported 9.8% revenue growth but still dropped 9.6% after its earnings release. Sally Beauty reported flat revenue and advanced 10.6%. The mixed reactions have kept investors in the sector on edge.

Bath & Body Works has been trying to counter softer consumer demand. One step in that effort is a new strategic partnership with Ulta Beauty, which management has said is aimed at driving traffic and sales.

Consumer spending trends will be a major focus on the earnings call. Investors will be looking for management’s view of the current buying environment as the company moves into the second half of the year, along with any signals on whether recent traffic and sales initiatives are gaining traction.

Wall Street’s view on BBWI

TipRanks shows a Moderate Buy consensus for BBWI, based on 4 Buy ratings, 6 Hold ratings, and 1 Sell rating. The average price target is $23.55, implying about 23% upside from current levels.

The highest price target on Wall Street is $30. While that is well above the current share price, it indicates that some analysts still see meaningful upside if the business stabilizes.

Over the past 52 weeks, Bath & Body Works stock has traded between $14.28 and $32.32. Its beta is 1.38, which means the shares tend to move more sharply than the broader market. That higher sensitivity is consistent with the options market’s large implied move.

BBWI is entering earnings down 5.4% over the past month, lagging the specialty retail sector average gain of 1.6% over the same period.

The average analyst price target is $25.33, versus a current price of $19.38.