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On Monday, Bath & Body Works Inc. (NYSE:BBWI) announced a significant change in leadership, appointing Daniel Heaf as the new CEO with immediate effect. Heaf takes over from Gina Boswell and is tasked with driving innovation and making full use of the company’s domestic and responsive supply chain. According to BofA Securities, this executive transition is poised to quicken the pace of innovation at the company.
Daniel Heaf, whose past roles include Chief Strategy and Transformation Officer at Nike (NYSE:NKE) and senior positions at Burberry (LON:BRBY), is expected to redefine success through accelerating sales growth while also expanding margins, building upon the company’s robust 44.26% gross profit margin. Heaf’s initial focus will be on evolving the company’s marketing approach. The strategy does not necessarily involve increased spending but will emphasize a shift in how marketing dollars are utilized to reflect the brand’s transformation.
BofA Securities analyst Lorraine Hutchinson expressed optimism about the potential for accelerated sales growth following the leadership change. The firm is encouraged by the sales inflection observed in the first quarter and believes that the new CEO’s experience could be instrumental in propelling the company forward.
In light of these developments, BofA Securities has reiterated its Buy rating on Bath & Body Works stock, maintaining a price target of $45.00. The firm’s confidence is bolstered by what it perceives as strong fundamentals and a momentum in sales that could lead to further upside for the company’s stock.
In other recent news, Bath & Body Works Inc. reported preliminary first-quarter results that exceeded expectations, with net sales reaching $1.4 billion and earnings per share of $0.49. The company maintained its full-year guidance, forecasting net sales growth between 1% to 3% and earnings per share ranging from $3.25 to $3.60 for 2025. In a significant leadership change, Daniel Heaf was appointed as the new CEO, succeeding Gina Boswell. Analysts from BMO Capital Markets reiterated an Outperform rating with a $50 price target, citing the company’s strong performance and strategic initiatives. Piper Sandler also maintained an Overweight rating with a $39 target, expressing confidence in the company’s direction under new leadership despite potential challenges such as tariffs.
S&P Global Ratings upgraded Bath & Body Works’ credit rating to ’BB+’ due to strong performance and debt reduction, highlighting the company’s consistent sales and market leadership. Meanwhile, Citi adjusted its price target to $36 from $48, maintaining a Buy rating while noting concerns over tariffs and a softening consumer environment. The company’s strategic approach to sourcing and production, alongside its robust cash flow, was emphasized as a strength. These developments reflect Bath & Body Works’ ongoing efforts to navigate the retail landscape and maintain investor confidence.
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