Bath & Body Works

The activist investor Barington has built a position of roughly one million shares in Bath & Body Works and is urging the board to hire financial advisers for a potential strategic sales process. Barington criticizes high management turnover and also calls for aggressive share buybacks or a formal proxy fight to enforce its demands. The stock rose about 2.3% in after-hours trading; management emphasizes ongoing dialogue with investors and pursuit of its operational strategy. » More on de.investing.com

Bath & Body Works reported adjusted earnings per share of $0.62 in the second quarter (expectation $0.24) on revenue of $1.5 billion, with customs refunds of about $80 million supporting profitability. The company raised its full-year adjusted EPS guidance to $2.60–$2.80, but kept the full-year net sales outlook at a decline of 4% to 2.5%. For Q3, Bath & Body Works still expects declining sales and only modest EPS margins, so the stock slipped slightly despite the earnings beat. Management stresses early progress in the turnaround but warns of continued store pressure and uncertainty about the sustainability of the recovery. » More on de.investing.com

Bath & Body Works shares rose 2.6% in premarket trading after Citi raised its rating from "Neutral" to "Buy" and set a fair value of $31.24. The stock now has four buy recommendations, though the majority of analysts still rate it as "Hold." Second-quarter results are due tomorrow before the market opens, and the ex-dividend date for the quarterly cash payout of $0.20 per share is August 21. The price movement is driven mainly by company-specific factors, as the broader market traded weaker and the stock remains well below its 52-week high. » More on de.investing.com