Bath & Body Works CEO Acknowledges Previous Strategy Did Not Foster Growth

Written by Emily J. Thompson, Senior Investment Analyst

BBWI-1.68%

NKE-0.64%

AMZN+2.06%

Source: WSJ

Updated: Nov 20 2025

0mins

Source: WSJ

Core Products Decline: Bath & Body Works is known for its body butters, candles, and soaps, but has struggled with sales as it expanded into new product categories like shampoo and laundry detergent.
Stock Performance: The company's shares have dropped over 45% this year, indicating significant financial challenges.

BBWI

$22.2+Infinity%1D

Analyst Views on BBWI

Wall Street analysts forecast BBWI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBWI is 20.14 USD with a low forecast of 15.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

14 Analyst Rating

4 Buy

10 Hold

0 Sell

Moderate Buy

Current: 22.580

Low

15.00

Averages

20.14

High

26.00

Current: 22.580

Low

15.00

Averages

20.14

High

26.00

Deutsche Bank

Hold

maintain

$21

2026-01-08

Reason

Deutsche Bank

Price Target

$21

AI Analysis

2026-01-08

maintain

Hold

Reason

Deutsche Bank resumed coverage of Bath & Body Works with a Hold rating and $21 price target. The firm resumed coverage of global brands, off-price, and specialty beauty retail. Following a "surprisingly strong" year for retail, Deutsche is entering 2026 with optimism as it anticipates a "volatile but broadly risk-on" macro environment, the analyst tells investors in a research note. The firm sees solid top-line trends, particularly in the first half of the year, due to easier weather comparisons and a boost in tax refunds.

UBS

Jay Sole

Neutral

maintain

$17 -> $21

2026-01-08

Reason

UBS

Jay Sole

Price Target

$17 -> $21

2026-01-08

maintain

Neutral

Reason

UBS analyst Jay Sole raised the firm's price target on Bath & Body Works to $21 from $17 and keeps a Neutral rating on the shares. CY26 EPS upside for Softline stocks is expected to be driven by a stronger-than-expected U.S. consumer and an underappreciated "Health & Wellness 2.0" trend, with estimates at least 4% above consensus for 16 names, the analyst tells investors in a research note. Earnings momentum is projected to extend into CY27, with EPS forecasts averaging about 5% above consensus, the firm adds.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for BBWI

Unlock Now

Barclays

Adrienne Yih

Equal Weight

maintain

$18 -> $20

2026-01-06

Reason

Barclays

Adrienne Yih

Price Target

$18 -> $20

2026-01-06

maintain

Equal Weight

Reason

Barclays analyst Adrienne Yih raised the firm's price target on Bath & Body Works to $20 from $18 and keeps an Equal Weight rating on the shares. The firm is "constructive" on the specialty retail sector into 2026, citing inventory discipline and macro tailwinds from lower interest rates and gas prices. However, stock selection "is critical as demand uncertainty persists," the analyst tells investors in a research note. Barclays adjusted price targets as part of its 2026 outlook.

Baird

upgrade

$19 -> $20

2025-12-17

Reason

Baird

Price Target

$19 -> $20

2025-12-17

upgrade

Reason

Baird raised the firm's price target on Bath & Body Works to $20 from $19 as they see an improving backdrop into 2026 as consumer stimulus including lower taxes, wealth effects, and tariff mitigation set the stage for stronger revenue and earnings growth especially after tariffs are cycled in the firrst half.

About BBWI

Bath & Body Works, Inc. is a global omnichannel retailer focused on personal care and home fragrance. The Company offers a range of fragrances for the body and home, including selling collections for 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions and body creams. It delivers customers their fragrances in multiple forms and categories. The Company sells merchandise through its retail stores in the United States and Canada, and through its Websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. It provides in-store experiences at more than 1,890 Company-operated Bath & Body Works locations in the United States and Canada, more than 525 international franchised locations and an online storefront at bathandbodyworks.com. Additionally, it offers a buy online pick-up in-store (BOPIS) option.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.