Raymond James on Bath & Body Works Inc. (BBWI): 'Consumer First initiatives beginning to build, but traction takes time'

Raymond James analyst Olivia Tong reiterated a Market Perform rating on Bath & Body Works Inc. (NYSE: BBWI).

The analyst comments "BBWI reported F4Q results and provided its F1Q/FY26 outlook today, with F4Q beating low expectations. Net sales -2.3% y/y vs. RJe -5.8%, consensus -6.2%, and management’s outlook for a high single-digit decline. EPS at $2.05 was ahead of RJe/Bloomberg consensus $1.76. The quarter started off more challenging, hampered by the government shutdown, though the backdrop recovered as the quarter progressed, with improved performance supported by holiday promotions. BBWI is making progress on its Consumer First Formula, including faster innovation in hero categories, reigniting the brand, and expanding access in the marketplace, while simplifying the operating model to fund reinvestment. The combination of recent launches like the Disney Princesses 2 collaboration and the launch on Amazon should drive traffic to stores while broadening reach and convenience, though we expect consistent improvement to take time, with top-line momentum struggling against a heavily promotional environment."

For an analyst ratings summary and ratings history on Bath & Body Works Inc. click here. For more ratings news on Bath & Body Works Inc. click here.

Shares of Bath & Body Works Inc. closed at $22.43 yesterday.

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