Bath & Body Works' (BBWI) Top-Line and Margin Gains Delayed Until H2 2026, According to Telsey Advisory

Bath & Body Works, Inc. (NYSE:BBWI) is included among the 11 Worst Performing Dividend Stocks Year-to-Date.

On November 21, Telsey Advisory analyst Dana Telsey downgraded Bath & Body Works, Inc. (NYSE:BBWI) to Market Perform from Outperform with a $17 price target, down from $38. According to the analyst, the company’s earnings for Q3 were below expectations due to sluggish sales and weaker margins, and its Q4 guidance suggests continued headwinds due to macro pressures. Telsey further said that though the company has a solid customer base, recovery is taking more time than projected, with top-line and margin improvements unlikely before the second half of 2026, limiting near-term visibility.

Though Bath & Body Works, Inc. (NYSE:BBWI) is down by over 50% since the start of 2025, the stock surged by over 3.3% from December 1 to December 8. The growth was mainly due to the company’s strong Black Friday weekend, which featured a “Buy 3, Get 4 Free” promotion. DOMO Capital wrote in a post on X:

“Bath & Body Works appears to have had a strong showing during the Black Friday weekend, driven by aggressive promotions and high foot traffic in stores with a high turnout from teens and value-driven demographics.”

These promising Black Friday sales balance off some of the challenges related to the third-quarter earnings. Bath & Body Works, Inc. (NYSE:BBWI) posted revenue of $1.6 billion in Q3, down 1% from the same period last year. Its operating income was $161 million, compared with $218 million in the prior year period. However, the company ended the quarter with $236 million available in cash and cash equivalents, up from $191 million in 2024.

Bath & Body Works, Inc. (NYSE:BBWI) is an American retail store chain that sells soaps, lotions, fragrances, and candles.

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