COLUMBUS, Ohio - Bath & Body Works, Inc. (NYSE: BBWI) announced today that Julie Rosen, the President of Retail, has stepped down from her position, with the transition taking effect immediately. The company has also revealed a restructuring move by eliminating the role of President, Retail, and consolidating its leadership.
Rosen, who has been with the company since 2020, will continue to serve in an advisory capacity to support a smooth transition. Following her departure, the responsibilities previously under her purview will shift to Gina Boswell, the CEO of Bath & Body Works.
Boswell expressed gratitude for Rosen's contributions, particularly in strengthening the company's foundation for sustainable growth. She stated, "We believe that now is the right time for this change," emphasizing the company's readiness for the upcoming holiday season and its focus on growth.
In addition to the leadership changes, Bath & Body Works reaffirmed its fiscal guidance for the third quarter and the full year of 2024, which had been previously provided on August 28, 2024.
Bath & Body Works, recognized for its fragrances and home scents, operates over 1,870 stores in the U.S. and Canada, along with more than 490 international franchised locations. The company prides itself on its predominantly U.S.-based supply chain, which it claims enables the delivery of quality products at affordable prices.
This announcement comes amidst a backdrop where companies in the retail industry face various challenges, such as economic conditions, consumer spending patterns, and market disruptions. Bath & Body Works has cautioned that forward-looking statements involve risks and uncertainties, and actual results may differ materially from those anticipated.
The information in this article is based on a press release statement from Bath & Body Works.
In other recent news, Bath & Body Works has seen multiple financial firms revise their stock price targets in response to weaker than anticipated sales in the second quarter of 2024. Morgan Stanley (NYSE:MS) maintained an Overweight rating but reduced the price target to $51 from $56, citing the company's potential for mid-single to high-single-digit top-line growth and a long-term EBIT margin of over 20%. Baird kept an Outperform rating while lowering the target to $45 from $54, and BofA Securities retained a Buy rating but cut the target to $45 from $54.
Despite a shortfall in revenue, Bath & Body Works reported a modest earnings per share increase that surpassed expectations due to better margins. The company has revised its full-year 2024 sales guidance downward, now projecting a decrease of 4% to 2%, compared to the previous forecast of a 2.5% decrease to flat growth. This update reflects an absence of growth in the second half of the year, contrary to the earlier assumption of a sales upturn during that period.
Bath & Body Works has also raised its cost optimization savings target to $130 million from $100 million and plans to repurchase $400 million in shares. These recent developments underline Bath & Body Works' efforts to navigate a challenging market while striving for operational efficiency and growth.
InvestingPro Insights
With the recent leadership transition at Bath & Body Works, investors may be scrutinizing the company's financial health and market position. According to InvestingPro data, Bath & Body Works has a market capitalization of $6.67 billion, underscoring its significant presence in the retail industry. The company's P/E ratio stands at an attractive 7.32, suggesting that the stock may be undervalued relative to its near-term earnings potential. This is reinforced by a PEG ratio of just 0.2 for the last twelve months as of Q2 2025, indicating that the stock could be a compelling choice for value investors looking for growth opportunities.
InvestingPro Tips for Bath & Body Works highlight that the management has been actively buying back shares, which could signal confidence in the company's future prospects. Additionally, the company's shareholder yield is noted to be high, which may appeal to investors seeking returns through both dividends and share repurchases. For those interested in further insights, there are 12 additional InvestingPro Tips available, which can be explored for a deeper analysis of Bath & Body Works' financial strategy and market performance.
Despite the challenges faced in the retail sector, Bath & Body Works has maintained dividend payments for 52 consecutive years, demonstrating a commitment to shareholder returns. As the company navigates the restructuring of its leadership roles and the dynamic retail landscape, these financial metrics and InvestingPro Tips provide a broader context for understanding its position and potential.
For a more comprehensive set of tips and real-time metrics, investors can refer to the detailed analysis on InvestingPro, which includes additional insights that can inform investment decisions.
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