Bath and Body Works, Inc. (NYSE:BBWI) is among them 14 Low PE High Dividend Stocks to Buy Now.
On March 5, Telsey Advisory announced that Bath and Body Works, Inc. (NYSE:BBWI) increased its price target from $23 to $25. It reiterated the market’s performance rating on the shares. The company said it was encouraged by the company’s Q4 performance, given that the results came in better than expected, analysts told investors. Even so, the company believes that the company remains an established brand and will continue to push for higher growth and operating margins in 2026.
A day earlier, on March 4, the company predicted a steeper-than-expected decline in annual sales. This came despite results for the holiday quarter that topped estimates. CEO Daniel Heaf said turning the fragrance retailer around will take time. Many consumers are dealing with high living costs and a weak job market. As a result, spending on non-essential goods has slowed. The change is weighing on retailers like Bath and Body Works.
The company expects full-year net sales to decline between 2.5% and 4.5%. Analysts were looking for a smaller decline of around 1.9%, according to data compiled by LSEG. The midpoint of the company’s annual adjusted earnings forecast, of $2.40 to $2.65 per share, also came in slightly below estimates of $2.56.
Bath & Body Works said its full-year outlook includes roughly 130 basis points of gross margin compression related to tariff-related product cost inflation. The company sources its products in-house. The management also said that the company has reduced its product offering by about 10%. The goal is to simplify and modernize the store experience. Last year, the company also said it would exit non-core categories and focus on its core businesses. Bath & Body Works reported fourth-quarter sales of $2.72 billion, beating estimates of $2.62 billion.
Bath and Body Works, Inc. (NYSE:BBWI) is a global omnichannel retailer focused on personal care and home fragrance. The company sells a range of products for the body and home, including 3-wick candles, home fragrance diffusers, fragrances, liquid hand soaps, body lotions, and body creams.
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Read more: The 40 Most Popular Stocks Among Hedge Funds in 2026 and the 14 Best American Dividend Stocks to Invest in
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