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On Friday, shares of Bath & Body Works Inc. (NYSE:BBWI) experienced a decline, falling 7.0% against a slight rise of 0.2% in the S&P 500. The move followed the company’s first-quarter results, which matched the preannouncement made on May 19, 2025, and exceeded the guidance provided in February. Despite the quarterly figures meeting expectations, the company’s second-quarter guidance was below the consensus estimates from LSEG Data & Analytics.
Goldman Sachs analyst Kate McShane reaffirmed a Buy rating on the stock, with a steady price target of $43.00. McShane’s outlook for the company remains positive, citing Bath & Body Works’ strategic positioning to offer customers affordable luxuries. The analyst highlighted the company’s multiple growth initiatives, including a strong pipeline of product ideas, new product introductions, collaborations, expansion into new product categories, and enhanced personalized marketing efforts.
According to the analyst, these factors contribute to the company’s potential for growth. Furthermore, the stock’s valuation is considered highly attractive by Goldman Sachs, with Bath & Body Works trading at 8.3 times its next twelve months’ (NTM) price-to-earnings (P/E) ratio. The reiteration of the Buy rating and the 12-month price target reflects confidence in the company’s future performance.
In addition to maintaining its full-year 2025 guidance, Bath & Body Works’ commitment to innovation and customer value is seen as a strong point by the analysts. The company’s ability to adapt and grow within the retail sector, despite the lower than anticipated second-quarter outlook, is a testament to its resilience and strategic planning.
In other recent news, Bath & Body Works Inc. reported first-quarter results that exceeded expectations, with earnings per share (EPS) of $0.49, surpassing forecasts of $0.42. The company’s revenue, however, slightly missed projections, coming in at $1.4 billion against the anticipated $1.42 billion. Despite these mixed results, Bath & Body Works maintained its full-year guidance of 1-3% net sales growth and an EPS range of $3.25 to $3.60. Analysts from Raymond (NSE:RYMD) James reiterated an Outperform rating, expressing confidence in the company’s strategic direction under new CEO Daniel Heaf. Meanwhile, Morgan Stanley (NYSE:MS) adjusted its price target to $41, citing concerns over the second-quarter guidance and tariff impacts, but maintained an Overweight rating. Piper Sandler also lowered its price target to $37, highlighting the company’s strong first-quarter performance and effective management strategies. Bath & Body Works continues to focus on product innovation and international expansion as part of its growth strategy.
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