Jefferies Downgrades Bath & Body Works Due to Margin Pressures

Reported 13 days ago

Jefferies has expressed caution regarding Bath & Body Works (BBWI), lowering its price target from $32 to $28.50, citing ongoing promotional activities that are negatively impacting margins. Despite the company's efforts to reduce reliance on discounts, new product launches continue to be marked down shortly afterwards, raising concerns about their ability to sustain growth through innovation. Furthermore, customer engagement has shown minimal improvement, prompting Jefferies to foresee limited short-term growth for the company amid an uncertain economic environment, although Bath & Body Works remains a consistent dividend payer.

Source: YAHOO

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