Novo Nordisk, Eli Lilly fall after Trump comments on weight loss drug pricing
Investing.com - Jefferies has reduced its price target on Bath & Body Works Inc. (NYSE:BBWI) to $28.50 from $32.00 while maintaining a Hold rating on the stock.
The firm’s analysis indicates Bath & Body Works has made limited progress in reducing promotional activity both online and in physical stores, with new product launches quickly moving to discount pricing despite the CEO’s stated strategy to decrease reliance on sales promotions.
Jefferies noted the company’s recent Disney Villains collection launch underperformed compared to the previous Disney Princess collaboration, raising questions about the retailer’s ability to drive sustainable momentum through product innovation rather than discounting.
The research firm’s checks revealed both foot traffic in stores and web traffic showed limited improvement from new product introductions, suggesting innovation alone has not significantly boosted customer engagement.
Given the persistent promotional environment, uneven impact of product launches, and broader economic uncertainty, Jefferies sees limited near-term upside potential for Bath & Body Works’ sales and profit margins.
In other recent news, The Brand House Collective, Inc. reported second-quarter results that did not meet analyst expectations. The company’s revenue decreased by nearly 12% compared to the same period last year. This decline comes as The Brand House Collective is undergoing a transition period marked by the opening of its first Bed Bath & Beyond Home store and recent intellectual property transactions. Despite these developments, the company’s stock showed a slight increase in pre-market trading. Investors are closely watching how these strategic moves will impact future performance. The revenue shortfall highlights the challenges faced during this transition phase. Analyst opinions on the company’s future remain varied, with some firms monitoring the situation closely.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.