Bath & Body Works downgraded to Market Perform from Outperform at Telsey Advisory

Telsey Advisory analyst Dana Telsey downgraded Bath & Body Works to Market Perform from Outperform with a price target of $17, down from $38. Bath & Body’s Q3 results missed expectations due to softer sales and weaker margins, with Q4 guidance signaling continued challenges amid macro pressure, the analyst tells investors in a research note. While the company remains a well-known brand with a loyal customer base, recovery is taking longer than anticipated, and topline and margin improvement is unlikely until the second half of 2026, limiting near-term visibility, Telsey says.