Bath & Body Works

BBWI

Market cap $3.56B

With Thanksgiving just hours away, investors are bracing for the most pivotal stretch of the retail calendar, as Black Friday launches a high-stakes holiday season shaped by shifting consumer behavior, sticky inflation and growing divides in household spending — factors likely to separate retail stock winners from losers.

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.

The seller of candles, scents and soaps wants to market fewer products as it tries to position itself for long-term growth.

Bath & Body Works (NYSE: BBWI) has been under pressure for a while, and its latest earnings only deepen the concerns. EPS slipped to $0.37 from $0.49, and management now expects a single-digit decline in net sales driven by softer consumer demand.

ALG, BBWI and BZH have been added to the Zacks Rank #5 (Strong Sell) List on Nov. 25, 2025.

Bath & Body Works shares plunged after disappointing earnings and a weak Q4 sales outlook, highlighting intensifying operational headwinds. BBWI's balance sheet remains stable, but rising costs and higher accounts payable pressure cash flow and threaten dividend sustainability. Current free cash flow is insufficient to cover both dividends and aggressive share buybacks; prioritizing one is essential for financial health.

Bath & Body Works sinks after a soft third quarter and trimmed 2025 outlook, even as its new Consumer First strategy aims to reignite growth.

Some stores aspire to be basic. Bath & Body Works is one of them.

Some stores aspire to be basic. Bath & Body Works is one of them.

Bath & Body Works, Inc. (NYSE: BBWI) posted downbeat third-quarter earnings and slashed its full-year outlook on Thursday.