Morgan Stanley has downgraded Bath & Body Works Inc (BBWI) to Equal-Weight from Overweight, a move that underscores a shift in sentiment regarding the company’s outlook. This action, effective November 20, 2025, comes as the retailer currently trades at $14.73 per share.
The downgrade suggests increased caution about Bath & Body Works' performance amid competitive pressures and market conditions that could pose execution risks. As a specialty retailer known for its exclusive fragrances and home products, the company operates over 1,890 locations across the U.S. and Canada, with a significant online presence.
Bath & Body Works has a market capitalization of $3.3 billion and a price-to-earnings ratio (P/E) of 4.58, reflecting its current valuation in the retail sector. The company is set to report its upcoming earnings on November 24, 2025, with analysts estimating earnings per share (EPS) of $0.40 and revenue of $1.7 billion.
Analyst ratings, such as this recent downgrade, provide insights based on research and financial models. However, they are subject to change as new information emerges, and investors should consider a range of factors, including company fundamentals and industry trends, when evaluating their investment strategies.
This update provides insight into the evolving landscape for Bath & Body Works, where varying analyst opinions reflect the complexities of the retail market.