Bath & Body Works (BBWI) Stock

Bath & Body Works' recent quarterly results showed mixed performance but raised full-year guidance, boosting investor confidence and leading to a double-digit stock jump. Despite international sales struggles due to geopolitical issues, the company sees significant long-term growth opportunities in new and existing markets. The balance sheet has improved, with declining debt and manageable repayment timelines, reducing previous concerns about financial stability.

Goldman Sachs analyst Kate McShane reiterated the Buy rating on Bath & Body Works, Inc. BBWI, with a price forecast of $52.

Bath & Body Works, Inc. BBWI reported better-than-expected third-quarter results and raised its 2024 outlook on Monday.

As the United States gross domestic product (GDP) figures for the quarter recently suggested that the American consumer was mostly responsible for carrying economic growth, investors might wonder whether it is still worth it to look into buying some retail stocks in the cyclical space, or whether the wave is toward its last inning and might roll over soon.

Although the revenue and EPS for Bath & Body Works (BBWI) give a sense of how its business performed in the quarter ended October 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

The main equity indexes closed higher as investors welcomed Donald Trump's Treasury secretary nominee.

Bath & Body Works, Inc. reported Q3 revenue of $1.61 billion, with positive comparable sales and a favorable valuation at 9X FWD P/E and 7X EV/EBITDA. Despite international sales dropping 11.1% due to Middle East conflicts, U.S. and Canadian sales increased, with inventory levels well-positioned for the holiday season. Margins remained stable, with gross profit at 43.5% and SG&A costs at 30% of revenues; net income was $106 million, beating EPS estimates.

Market participants look to be picking up where they left off last week.

Bath & Body Works (BBWI) shares skyrocketed when the personal care items retailer posted better-than-expected results and boosted its outlook on strong store traffic, customer loyalty and optimism about the upcoming holiday season.