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Bath & Body Works risk/reward positive into earnings, says Citi
The Fly

Bath & Body Works risk/reward positive into earnings, says Citi

Citi analyst Paul Lejuez expects Bath & Body Works to report Q3 earnings per share of 50c, 3c above consensus, based on slightly stronger gross margin and lower spending. While Q3 was another difficult quarter to drive sales given a price-sensitive consumer and lack of big promotion events to drive traffic, management guided the second half of 2024 conservatively enough, the analyst tells investors in a research note. With holiday sales around the corner, Citi believes Q4 represents the best opportunity for Bath & Body to deliver upside to sales guidance this year. It keeps a Neutral rating on the shares with a $35 price target but believes the risk/reward skews positive into the earnings print.

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