Bath & Body Works (BBWI) stock surged after reporting better-than-expected third-quarter results and raising its 2024 outlook. The company exceeded sales and earnings estimates, showcasing strong performance despite a challenging retail environment. However, Q4 sales are projected to decline.
Barclays analyst Adrienne Yih downgraded Bath & Body Works (BBWI) to Underweight, citing concerns about rising inventory levels, promotional activity, and the deteriorating US consumer environment. Yih anticipates continued pressure on sales and margins in 2025, with potential declines in both. The analyst also highlighted the need for Bath & Body Works to invest in premium product offerings to shift away from its heavily promotional strategy and stay competitive.
