Bath & Body Works' 15min chart shows Bollinger Bands Narrowing and KDJ Death Cross

The 15-minute chart for Bath & Body Works has recently exhibited a narrowing of Bollinger Bands, accompanied by a KDJ Death Cross at 08/08/2025 15:45. This suggests a decrease in the magnitude of stock price fluctuations and a shift in momentum towards the downside, which could potentially lead to further decreases in the stock price.

Bath & Body Works (BBWI) has been navigating a challenging retail landscape, but its recent earnings performance has been encouraging. As the company prepares to report Q2 2025 earnings on August 13, 2025, investors are closely monitoring the stock's technical indicators. The 15-minute chart for BBWI has exhibited a narrowing of Bollinger Bands, accompanied by a KDJ Death Cross at 08/08/2025 15:45, suggesting a decrease in the magnitude of stock price fluctuations and a shift in momentum towards the downside.

The narrowing of Bollinger Bands indicates a decrease in volatility, which can sometimes precede a significant move in either direction. The KDJ Death Cross, a technical indicator that combines the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), signals a potential reversal in momentum. This combination suggests that the stock may be poised for a downward move.

Despite the technical signals, it is essential to consider the company's fundamentals. BBWI reported strong Q1 2025 earnings, with net sales rising 2.9% and earnings per share (EPS) surging to $0.49. The company has exceeded consensus EPS expectations in four of the last four quarters and provided guidance for Q2 2025 that suggests resilience in the face of macroeconomic headwinds. Analysts expect revenue of $1.42 billion, a 2.7% year-over-year increase, with a consensus EPS estimate of $0.45.

However, BBWI faces several risks, including tariffs compressing gross margins and high leverage. The company's negative equity position of -$1.39 billion and projected revenue growth for 2025 of 1-3% may underwhelm investors seeking explosive expansion. The new CEO, Daniel Heaf, must balance innovation with maintaining the company's core customer base.

In conclusion, while the technical indicators suggest potential downward momentum for BBWI, the company's strong earnings history and strategic initiatives provide a reason for cautious optimism. Investors should closely monitor the earnings report on August 13 and consider the company's fundamentals and strategic moves before making investment decisions.

References:
[1] https://www.ainvest.com/news/bath-body-works-q2-2025-earnings-case-optimism-strategic-momentum-2508/