Bath and Body Works’s stock price has taken a beating over the past six months, shedding 32.8% of its value and falling to $19.29 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.
Is now the time to buy Bath and Body Works, or should you be careful about including it in your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free for active Edge members.
Why Is Bath and Body Works Not Exciting?
Even though the stock has become cheaper, we're swiping left on Bath and Body Works for now. Here are three reasons you should be careful with BBWI and a stock we'd rather own.
1. Shrinking Same-Store Sales Indicate Waning Demand
Same-store sales is a key performance indicator used to measure organic growth at brick-and-mortar shops for at least a year.
Bath and Body Works’s demand has been shrinking over the last two years as its same-store sales have averaged 1.7% annual declines.
2. Revenue Projections Show Stormy Skies Ahead
Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect Bath and Body Works’s revenue to drop by 5.2%, a decrease from This projection doesn't excite us and indicates its products will face some demand challenges.
3. EPS Trending Down
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Sadly for Bath and Body Works, its EPS declined by 5.3% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.
Final Judgment
Bath and Body Works isn’t a terrible business, but it isn’t one of our picks. Following the recent decline, the stock trades at 7.3× forward P/E (or $19.29 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're pretty confident there are superior stocks to buy right now. We’d suggest looking at the Amazon and PayPal of Latin America.
Stocks We Like More Than Bath and Body Works
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
