BUZZ-Bath & Body Works down after Barclays downgrades to 'underweight'

reuters11-08
BUZZ-Bath & Body Works down after Barclays downgrades to 'underweight'

** Shares of Bath & Body Works BBWI.N down 2.4% at $30.98 premarket, after Barclays downgrades to "underweight" from "equal weight"

** Brokerage says there is risk of ongoing sales and margin pressure in 2025 from a weakening U.S. macroenvironment and stabilizing beauty sector

** Adds that BBWI has resorted to aggressive promotions which are indicative of weak consumer spending

** Barclays says BBWI faces strong competition during the holiday season as all retailers fight for the consumer's "holiday wallet" broadly

** "These are trends we do not expect to reverse into 2025," brokerage says

** Ten of 19 brokerages rate the stock "buy" or higher, eight "hold" and one "sell"; with a median PT of $42

** Up to Thursday's close, stock had fallen ~26% so far this year

(Reporting by Ananya Mariam Rajesh in Bengaluru)

((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam))

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