Bath & Body Works: Near-Term Outlook Still Poor, But Recovery Plan Has Merits (Upgrade)

Core Viewpoint - The analyst downgraded Bath & Body Works Inc. (BBWI) to a sell rating due to weak demand, elevated inventory leading to potential margin pressure, and concerns regarding near-term earnings [1] Group 1: Demand and Inventory - Demand for Bath & Body Works products is reported to be weak, which raises concerns about the company's sales performance [1] - Elevated inventory levels are noted, suggesting potential margin pressure as the company may need to discount products to clear stock [1] Group 2: Earnings Outlook - There are concerns regarding the near-term earnings of Bath & Body Works, indicating that the company may face challenges in maintaining profitability in the upcoming quarters [1]