Bath & Body Works Faces Continued Sales Declines Amid Strategy Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy BBWI?
Source: seekingalpha
- Downgrade in Expectations: Citi Research analyst Paul Lejuez downgraded Bath & Body Works (BBWI) from Buy to Neutral, anticipating a fifth consecutive year of sales declines due to persistent weaknesses in its core business, particularly highlighted by the disappointing Disney collaboration that negatively impacted Q3 results.
- Pessimistic Sales Guidance: Citi expects BBWI's FY26 EPS guidance to range between $2.10 and $2.25, falling short of the consensus estimate of $2.50, with current quarter sales projected to decline in the mid-single digits to high single digits, indicating significant market pressures.
- Strategic Market Shift: CEO Daniel Heaf indicated a shift towards partnerships to enhance market share, which, while potentially boosting online sales, may further erode in-store traffic as customers find online shopping more convenient.
- Innovation and Leadership Concerns: Although the new leadership is expected to revitalize the core business through product innovation, analysts express concerns about the effectiveness of this strategy in driving a sales turnaround by 2026, suggesting that reliance on price promotions to stimulate demand may not be sustainable in the short term.
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 24.070
Low
15.00
Averages
20.14
High
26.00
Current: 24.070
Low
15.00
Averages
20.14
High
26.00
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.
Bath & Body Works Faces Continued Sales Declines Amid Strategy Shift
- Downgrade in Expectations: Citi Research analyst Paul Lejuez downgraded Bath & Body Works (BBWI) from Buy to Neutral, anticipating a fifth consecutive year of sales declines due to persistent weaknesses in its core business, particularly highlighted by the disappointing Disney collaboration that negatively impacted Q3 results.
- Pessimistic Sales Guidance: Citi expects BBWI's FY26 EPS guidance to range between $2.10 and $2.25, falling short of the consensus estimate of $2.50, with current quarter sales projected to decline in the mid-single digits to high single digits, indicating significant market pressures.
- Strategic Market Shift: CEO Daniel Heaf indicated a shift towards partnerships to enhance market share, which, while potentially boosting online sales, may further erode in-store traffic as customers find online shopping more convenient.
- Innovation and Leadership Concerns: Although the new leadership is expected to revitalize the core business through product innovation, analysts express concerns about the effectiveness of this strategy in driving a sales turnaround by 2026, suggesting that reliance on price promotions to stimulate demand may not be sustainable in the short term.
See More
Class Action Lawsuit Filed Against Bath & Body Works for Securities Fraud
- Lawsuit Announcement: On February 16, 2026, Kessler Topaz Meltzer & Check, LLP announced a class action lawsuit against Bath & Body Works (NYSE:BBWI) for securities fraud, covering investors who purchased shares between June 4, 2024, and November 19, 2025, indicating significant misstatements during this period.
- Allegations of Misrepresentation: The complaint alleges that Bath & Body Works failed to disclose that its strategy of pursuing 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, leading to the company’s inability to meet previously issued financial guidance, which negatively impacted investor confidence.
- Investor Participation: Investors must apply by March 16, 2026, to be appointed as lead plaintiffs in the class action, representing all investors in directing the litigation and selecting appropriate legal counsel to pursue potential recovery.
- Law Firm Credentials: Kessler Topaz Meltzer & Check, LLP is a leading law firm focused on securities fraud class actions, recognized for representing both individual and institutional investors, and aims to protect investor rights through significant recoveries in litigation.
See More
Bath & Body Works Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Bath & Body Works securities between June 4, 2024, and November 19, 2025, that they must apply to be lead plaintiff by March 16, 2026, to participate in the class action and potentially receive compensation.
- Fee Arrangement: Investors joining the class action will not incur any upfront costs, as the law firm operates on a contingency fee basis, which reduces the financial burden on investors and encourages broader participation.
- Lawsuit Background: The lawsuit alleges that Bath & Body Works made misleading statements during the class period, failing to disclose that its business strategy was not achieving the expected growth, resulting in investor losses when the truth emerged, highlighting significant governance and transparency issues within the company.
- Law Firm's Advantage: Rosen Law Firm is renowned for its successful track record in securities class actions, having secured hundreds of millions in settlements, emphasizing the importance of selecting experienced legal counsel to effectively protect investors' rights.
See More
Class Action Lawsuit Reminder Against Bath & Body Works, Inc.
- Class Action Notice: The Schall Law Firm reminds investors of a class action lawsuit against Bath & Body Works, Inc. (NYSE:BBWI) for violations of securities laws during the period from June 4, 2024, to November 19, 2025, urging affected investors to contact the firm before March 16, 2026.
- False Statement Allegations: The complaint alleges that Bath & Body Works made false and misleading statements regarding its business strategy, particularly its failure to grow its customer base and net sales through its approach of seeking 'adjacencies, collaborations, and promotions', resulting in investor losses.
- Failed Brand Collaborations: The company resorted to brand collaborations to 'carry quarters' despite weak financial results, which did not improve its financial condition and increased the risk of losses for investors.
- Legal Representation Information: The Schall Law Firm specializes in securities class action lawsuits, and investors can contact the firm through its website or phone to discuss their rights and participate in the lawsuit to seek compensation for their losses.
See More
Bath & Body Works Class Action Notice Issued
- Class Action Timeline: Investors who purchased Bath & Body Works (NYSE: BBWI) securities between June 4, 2024, and November 19, 2025, should note that the deadline to apply as lead plaintiff is March 16, 2026, and failure to apply may result in loss of compensation rights.
- Lawsuit Background: The lawsuit alleges that the company made materially false statements during this period, failing to disclose that its strategy of 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, leading to investor losses when the truth emerged.
- Legal Counsel Recommendation: Investors are encouraged to select law firms with a proven track record; Rosen Law Firm is recognized for its success in securities class actions and has secured significant settlements, ensuring effective protection of investor rights.
- Participation Instructions: Investors can join the class action by visiting the specified website or calling the toll-free number, and it is crucial to choose appropriate legal counsel as investors are not represented until the class is certified.
See More
Class Action Lawsuit Filed Against Bath & Body Works, Inc.
- Lawsuit Background: Bath & Body Works, Inc. faces a class action lawsuit for alleged violations of federal securities laws, targeting investors who purchased the company's securities between June 4, 2024, and November 19, 2025, aiming to recover damages.
- False Statements Allegation: The complaint alleges that company executives made materially false and misleading statements during the class period, failing to disclose adverse facts about the company's business and financial outlook, misleading investors.
- Financial Guidance Missteps: The lawsuit highlights that the company's strategy of 'adjacencies, collaborations, and promotions' did not effectively grow the customer base and relied on brand collaborations to mask weak financial results, likely leading to unmet financial guidance.
- Investor Rights Protection: Investors in Bath & Body have until March 13, 2026, to apply as lead plaintiffs, with the law firm representing them on a contingency fee basis, ensuring that investor rights are restored in the process.
See More
Bath & Body Works Faces Continued Sales Declines Amid Strategy Shift
- Downgrade in Expectations: Citi Research analyst Paul Lejuez downgraded Bath & Body Works (BBWI) from Buy to Neutral, anticipating a fifth consecutive year of sales declines due to persistent weaknesses in its core business, particularly highlighted by the disappointing Disney collaboration that negatively impacted Q3 results.
- Pessimistic Sales Guidance: Citi expects BBWI's FY26 EPS guidance to range between $2.10 and $2.25, falling short of the consensus estimate of $2.50, with current quarter sales projected to decline in the mid-single digits to high single digits, indicating significant market pressures.
- Strategic Market Shift: CEO Daniel Heaf indicated a shift towards partnerships to enhance market share, which, while potentially boosting online sales, may further erode in-store traffic as customers find online shopping more convenient.
- Innovation and Leadership Concerns: Although the new leadership is expected to revitalize the core business through product innovation, analysts express concerns about the effectiveness of this strategy in driving a sales turnaround by 2026, suggesting that reliance on price promotions to stimulate demand may not be sustainable in the short term.
See More
Class Action Lawsuit Filed Against Bath & Body Works for Securities Fraud
- Lawsuit Announcement: On February 16, 2026, Kessler Topaz Meltzer & Check, LLP announced a class action lawsuit against Bath & Body Works (NYSE:BBWI) for securities fraud, covering investors who purchased shares between June 4, 2024, and November 19, 2025, indicating significant misstatements during this period.
- Allegations of Misrepresentation: The complaint alleges that Bath & Body Works failed to disclose that its strategy of pursuing 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, leading to the company’s inability to meet previously issued financial guidance, which negatively impacted investor confidence.
- Investor Participation: Investors must apply by March 16, 2026, to be appointed as lead plaintiffs in the class action, representing all investors in directing the litigation and selecting appropriate legal counsel to pursue potential recovery.
- Law Firm Credentials: Kessler Topaz Meltzer & Check, LLP is a leading law firm focused on securities fraud class actions, recognized for representing both individual and institutional investors, and aims to protect investor rights through significant recoveries in litigation.
See More
Bath & Body Works Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Bath & Body Works securities between June 4, 2024, and November 19, 2025, that they must apply to be lead plaintiff by March 16, 2026, to participate in the class action and potentially receive compensation.
- Fee Arrangement: Investors joining the class action will not incur any upfront costs, as the law firm operates on a contingency fee basis, which reduces the financial burden on investors and encourages broader participation.
- Lawsuit Background: The lawsuit alleges that Bath & Body Works made misleading statements during the class period, failing to disclose that its business strategy was not achieving the expected growth, resulting in investor losses when the truth emerged, highlighting significant governance and transparency issues within the company.
- Law Firm's Advantage: Rosen Law Firm is renowned for its successful track record in securities class actions, having secured hundreds of millions in settlements, emphasizing the importance of selecting experienced legal counsel to effectively protect investors' rights.
See More
Class Action Lawsuit Reminder Against Bath & Body Works, Inc.
- Class Action Notice: The Schall Law Firm reminds investors of a class action lawsuit against Bath & Body Works, Inc. (NYSE:BBWI) for violations of securities laws during the period from June 4, 2024, to November 19, 2025, urging affected investors to contact the firm before March 16, 2026.
- False Statement Allegations: The complaint alleges that Bath & Body Works made false and misleading statements regarding its business strategy, particularly its failure to grow its customer base and net sales through its approach of seeking 'adjacencies, collaborations, and promotions', resulting in investor losses.
- Failed Brand Collaborations: The company resorted to brand collaborations to 'carry quarters' despite weak financial results, which did not improve its financial condition and increased the risk of losses for investors.
- Legal Representation Information: The Schall Law Firm specializes in securities class action lawsuits, and investors can contact the firm through its website or phone to discuss their rights and participate in the lawsuit to seek compensation for their losses.
See More
Bath & Body Works Class Action Notice Issued
- Class Action Timeline: Investors who purchased Bath & Body Works (NYSE: BBWI) securities between June 4, 2024, and November 19, 2025, should note that the deadline to apply as lead plaintiff is March 16, 2026, and failure to apply may result in loss of compensation rights.
- Lawsuit Background: The lawsuit alleges that the company made materially false statements during this period, failing to disclose that its strategy of 'adjacencies, collaborations, and promotions' was not effectively growing its customer base, leading to investor losses when the truth emerged.
- Legal Counsel Recommendation: Investors are encouraged to select law firms with a proven track record; Rosen Law Firm is recognized for its success in securities class actions and has secured significant settlements, ensuring effective protection of investor rights.
- Participation Instructions: Investors can join the class action by visiting the specified website or calling the toll-free number, and it is crucial to choose appropriate legal counsel as investors are not represented until the class is certified.
See More
Class Action Lawsuit Filed Against Bath & Body Works, Inc.
- Lawsuit Background: Bath & Body Works, Inc. faces a class action lawsuit for alleged violations of federal securities laws, targeting investors who purchased the company's securities between June 4, 2024, and November 19, 2025, aiming to recover damages.
- False Statements Allegation: The complaint alleges that company executives made materially false and misleading statements during the class period, failing to disclose adverse facts about the company's business and financial outlook, misleading investors.
- Financial Guidance Missteps: The lawsuit highlights that the company's strategy of 'adjacencies, collaborations, and promotions' did not effectively grow the customer base and relied on brand collaborations to mask weak financial results, likely leading to unmet financial guidance.
- Investor Rights Protection: Investors in Bath & Body have until March 13, 2026, to apply as lead plaintiffs, with the law firm representing them on a contingency fee basis, ensuring that investor rights are restored in the process.
See More
