Bath & Body Works May Finally Be Past Its Worst Tariff Pain: Analyst

Core Viewpoint - Bath & Body Works, Inc. is experiencing a decline in stock value due to weak quarterly performance and lowered guidance, amid challenges such as sluggish holiday demand and product misfires [1][2]. Financial Performance - The company reported third-quarter adjusted earnings per share of 35 cents, missing the expected 40 cents [1]. - Full-year outlook has been revised to reflect low-single-digit sales declines, with adjusted EPS now projected at least $2.87, down from the previous range of $3.35–$3.60 and below the consensus estimate of $3.44 [4]. Analyst Insights - Bank of America Securities analyst Lorraine Hutchinson maintains a Buy rating but has reduced the price target from $40 to $32, citing product misfires and macroeconomic challenges [2][5]. - Hutchinson anticipates that the fourth quarter will likely represent the lowest point for sales trends, with expectations for a turnaround beginning to emerge by 2026 as strategic changes take effect [3][5]. Market Reaction - Following the announcement, BBWI shares fell by 25.50% to $15.68 [7].