Bath & Body Works Lowers Guidance — But Its Reset Could Pay Off, Analyst Says

Author: Priya Nigam | November 21, 2025 12:26pm

The magnitude of Bath & Body Works Inc.'s (NYSE:BBWI) lower guidance reset took investors by surprise. Still, BofA Securities said, "We think management is taking the right steps to turn the brand."

The Bath & Body Works Analyst: Analyst Lorraine Hutchinson maintained a Buy rating, while reducing the price target from $32 to $26.

The Bath & Body Works Thesis: As part of its new strategies, the company plans to open a store on Amazon.com, Inc. (NASDAQ:AMZN) in the first half of 2026, Hutchinson said in the note.

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The analyst mentioned four key priorities of Bath & Body Works' strategic transformation plan:

• Re-focus on core categories and optimize the assortment to reduce complexity
• Reclaim cultural relevance with fewer, more targeted marketing activations.
• Enhance digital and in-store experience and expand to new channels
• Investments to be funded with $250 million in cost savings

Investments and deleverage could exert pressure on the company's earnings in 2026, she further stated.

BBWI Price Action: Bath & Body Works shares were down 3.82% at $15.21 at the time of publication on Friday. The stock is trading near its 52-week low of $15.42, according to Benzinga Pro data.

Bath & Body Works, with a market cap of $3.14 billion and an unusually low P/E ratio of 4.90, highlights significant valuation concerns in the specialty retail sector. The stock is currently trading near its 52-week low of $15.42, indicating potential challenges in consumer spending or market sentiment.

Read More:

• Bath & Body Works Analysts Slash Their Forecasts After Weaker-Than-Expected Earnings

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Posted In: AMZN BBWI