• Bath & Body Works (NYSE:BBWI) was downgraded by Telsey Advisory from "Outperform" to "Market Perform".
• The company's stock price dropped sharply by 25%, reaching a five-year low.
• BBWI reported a decrease in sales and earnings, with a significant reduction in its forecast for the year.

Bath & Body Works (NYSE:BBWI) is a well-known retailer specializing in personal care products, including hand soaps and candles. The company has faced significant challenges recently, leading to a downgrade by Telsey Advisory from "Outperform" to "Market Perform" on November 21, 2025. At the time of this downgrade, BBWI's stock was priced at $15.82.

The downgrade coincided with a sharp 25% drop in BBWI's stock price, following the company's announcement of declining sales and earnings. The retailer also lowered its forecast for the year, indicating difficulties in achieving growth. The CEO admitted that the previous strategy did not deliver the expected results, prompting a reassessment of their approach.

BBWI's stock has reached a five-year low, reflecting the company's struggles. In the third quarter, sales decreased by 1.2% to $1.59 billion, and operating income fell to $161 million from $218 million the previous year. The adjusted earnings per share (EPS) was $0.35, missing analysts' expectations of $0.40 and down from last year's $0.49.

The company now anticipates a minimum of $1.70 in fourth-quarter EPS, which is below forecasts. Tariffs are adding additional strain, and the company is grappling with reduced consumer spending and broader macroeconomic pressures. In response, Bath & Body Works has announced a comprehensive transformation plan to revitalize the brand and improve its market presence.

BBWI's stock is currently priced at $15.82, reflecting a significant decrease of 24.81% with a change of $5.22. The stock has fluctuated between a low of $15.43 and a high of $16.53 today. Over the past year, it reached a high of $41.87 and a low of $15.43. The company has a market capitalization of approximately $3.39 billion, with a trading volume of 39.49 million shares.