What's In Store For Bath & Body Works In Q4? Analyst Sees Strong Merchandise Margin Improvement
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey maintains an Outperform rating on Bath & Body Works, Inc. (NYSE:BBWI) with a price target of $50, ahead of their Q4 earnings report. Sales are expected to decline 1.9% YOY to $2.833 billion, with a same-store sales decline of 5%. However, gross margin is projected to improve by over 100 bps to 44.4%, driven by merchandise margin improvement and cost optimization. Operating margin is expected to be 22.6%, slightly below market expectations. The company is also on track to generate $200 million in annual cost savings from its profit improvement plan.
February 22, 2024 | 7:36 pm
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Telsey Advisory Group reiterates an Outperform rating on Bath & Body Works with a $50 price target, highlighting expected Q4 gross margin improvement and cost savings.
The positive outlook from Telsey Advisory Group, especially regarding gross margin improvement and cost savings, suggests a strong financial performance for Bath & Body Works in Q4. This, combined with the unchanged price target of $50, indicates a bullish sentiment that could positively impact the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100