Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
On Tuesday, Goldman Sachs reiterated a Buy rating on Bath & Body Works Inc. (NYSE:BBWI) with a steady price target of $49.00. The firm’s analysis highlighted the successful digital engagement surrounding BBWI’s Disney (NYSE:DIS) Princess collaboration, which has seen a year-over-year and sequential increase in app downloads, along with a spike in Google (NASDAQ:GOOGL) search interest.
The company’s strategy of leveraging collaborations during typically slower periods to attract customers and generate excitement beyond the holiday season was noted as a key driver of foot traffic. With a healthy gross profit margin of 44.26% and strong financial health score according to InvestingPro analysis, BBWI maintains flexibility in its promotional strategy. Goldman Sachs updated their promotional tracker for BBWI, which monitors pricing trends for products like 3-wick candles and free shipping offers.
The report included insights from a channel check conducted on March 21, 2025, revealing that 3-wick candle prices were higher year-over-year in January and February, suggesting fewer promotions, while March-to-date showed a downward pricing trend, indicating more aggressive promotions. Despite these fluctuations, in-store promotions for the first quarter have remained consistent with averages since the fourth quarter of 2022.
Bath & Body Works’ management had previously acknowledged an increase in promotional activity year-over-year in the fourth quarter, while also surpassing the company’s top line and margin expectations. Looking forward, Goldman Sachs anticipates that average unit retail (AUR) will play a significant role in BBWI’s growth strategy as the company continues to introduce innovative products to the market.
In other recent news, Bath & Body Works Inc. reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.09, exceeding the forecasted $2.04. However, the company’s net sales for the quarter reached $2.8 billion, marking a 4% year-over-year decline. Despite the earnings beat, the company faced challenges with its stock falling in pre-market trading due to concerns about future growth prospects. Bath & Body Works has maintained its financial guidance for the first quarter and full fiscal year of 2025, expecting net sales growth between 1% and 3%, with earnings per diluted share projected to be between $0.36 and $0.43 for the first quarter.
Additionally, the company anticipates full-year earnings per diluted share to range from $3.25 to $3.60. In another development, CEO Gina Boswell announced a temporary medical leave to undergo scheduled surgery, with no specifics provided regarding the interim leadership structure. Meanwhile, TD Cowen’s Oliver Chen highlighted Bath & Body Works as a stock with potential for growth, maintaining a buy rating despite recent declines. These updates reflect the current situation at Bath & Body Works without any speculation on future outcomes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.