BBWI is pivoting sharply lower after hitting two-year highs yesterday
Bath & Body Works Inc (NYSE:BBWI) posted better-than-expected first-quarter earnings results before the open this morning. However, the retailer's disappointing current-quarter and full-year guidance are sending the shares tumbling. At last glance, BBWI was down 11.4% to trade at $45.88, headed for its worst day since January 2021.
Falling from last session's two-year high of $52.98, BBWI is now trading at its lowest levels in a month. The 120-day moving average, which the stock hasn't breached on a closing basis since Dec. 2023, appears to be supporting today's pullback, however, as it did for a drawdown in early May. Since the start of the year, the equity is up 7%.
In the options pits, 9,404 calls and 8,748 puts have been exchanged, volume that is 3.6 times the average intraday amount The weekly 6/7 51-strike put is the most popular contract, followed by the weekly 6/7 48-strike call, with new positions opening bought to open at the latter.
Analysts have yet to chime in on the results. The 18 in coverage are of split sentiment, with nine carrying a "buy" or better rating and nine a "hold. The 12-month consensus price target of $51.57 is a 10.5% premium to current levels, though still below yesterday's peak.