Argus cuts Bath and Body Works to hold, citing online pressure, economy

By Liz Moyer -- Argus downgraded Bath&Body Works Inc. (NYSE:BBWI) shares to Hold from Buy, citing increased pressure from online retailers and economic uncertainty.

Shares of the home fragrance, body care and soap retailer fell 2.9% on Friday and are down 18.8% so far this year.

The analysts said in a research note on Friday that Bath&Body's shares have underperformed the S&P 500 over the past quarter, falling 16% compared to a 0.1% decline for the index. 

“The mall-based segment of retail — in which BBWI competes — has been under increasing pressure from online retailers, who are rapidly gaining share,” Argus said in the note. “Economic uncertainty is also substantially impacting sales, as consumers remain cautious with their purchases.”

The analysts noted that fiscal year 2023 sales were down 4% from the prior year, and management projects fiscal year 2024 sales to be flat or down in mid-single digits. 

Argus did outline some positive developments. Bath&Body introduced a loyalty program last August and now has over 33 million members. “Management noted loyalty sales already represent about two thirds of total U.S. sales since launch. The Men’s business continues to grow rapidly as the company tests new forms and merchandising ideas.”

Based on management guidance and recent revenue trends, Argus said it is lowering its fiscal year 2024 adjusted earnings per share estimate to $2.75 from $3.85, which is at the midpoint of management’s guidance and implies a decline of 19% from fiscal year 2023, the analysts said. The analysts see growth in fiscal year 2025, with an estimated adjusted EPS of $3.20. 

“We would look to return this stock to the BUY list as the economy stabilizes and if management can overcome competition from online retailers,” the analysts wrote.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: