Bath & Body Works Analysts Slash Their Forecasts After Weaker-Than-Expected Earnings

Core Viewpoint - Bath & Body Works, Inc. reported disappointing third-quarter earnings and reduced its full-year outlook due to ongoing macro consumer pressures [1][2]. Financial Performance - The company reported third-quarter adjusted earnings per share of 35 cents, missing the analyst consensus estimate of 40 cents [1]. - Quarterly sales were $1.594 billion, a 1% decline year over year, which also fell short of the analyst consensus estimate of $1.634 billion [1]. Future Outlook - For the fourth quarter, the company anticipates sales to decline in the high-single-digit range, attributing this to a challenging start to the holiday season and weakening consumer sentiment [3]. - The expected EPS for the fourth quarter is at least $1.70, significantly below the consensus estimate of $2.17 [3]. Market Reaction - Following the earnings announcement, Bath & Body Works shares fell 2.2% to $15.47 in pre-market trading [3]. Analyst Ratings - Baird analyst Mark Altschwager downgraded Bath & Body Works from Outperform to Neutral and reduced the price target from $33 to $19 [4]. - Goldman Sachs analyst Kate McShane downgraded the stock from Buy to Neutral and cut the price target from $39 to $17 [4].