Bath & Body Works, Inc.

Bath & Body Works (BBWI) reported Q4 revenue of $2.79 billion, a 4.3% year-over-year decline, meeting analyst expectations, but full-year EPS guidance fell short, leading to a 31.9% stock decline [1]. Despite these challenges from e-commerce competition and reduced retail foot traffic [1], Piper Sandler upgraded BBWI to Overweight with a $35 price target due to the company's resilient, vertically integrated structure and affordable pricing [5]. While some articles point to slower revenue growth and weak same-store sales as potential risks [6], [8], BBWI is considered undervalued, trading below its industry average [2]. The company also stands to benefit from its minimal overseas sourcing amidst new tariffs affecting competitors [9].