Jefferies Points to Uneven Consumer Demand in Bath & Body Works (BBWI) View

Bath & Body Works, Inc. (NYSE:BBWI) is included among the 14 Best Mid-Cap Dividend Stocks to Buy Now.

On January 14, Jefferies restarted coverage of Bath & Body Works, Inc. (NYSE:BBWI) with a Hold rating and raised its price target to $24 from $16 as it took over coverage of specialty softlines. In its updated 2026 view, the firm said it’s looking more closely at how a K-shaped consumer environment is influencing beauty spending, and noted that it still has conviction in a broader makeup cycle.

Bath & Body Works has a strong lineup of new products in the pipeline, and that should do more than just lift sales. It could also help the brand reach new customers. There are some easy, natural extensions it can build on as well, like expanding further into shaving and facial care. At the same time, the company has room to branch out into newer categories that are still developing, including haircare and men’s grooming.

The growth story isn’t limited to adding more products. BBW also has a lot of untapped potential outside the U.S. In fiscal 2024, the company generated most of its revenue from North America, while international markets made up only about 5% of sales. That imbalance gives BBW a clear runway to expand globally, and it’s something the company appears focused on improving.

Bath & Body Works, Inc. (NYSE:BBWI) is a global omnichannel retailer known for personal care products and home fragrance.

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