10 Stocks Jim Cramer Can’t Stop Talking About

4. Bath & Body Works (NYSE:BBWI)

Number of Hedge Fund Investors: 55

Jim Cramer comments on Bath & Body Works (NYSE:BBWI), noting that the struggling retailer reported a disappointing quarter, causing its stock to drop 7%. Bath & Body Works (NYSE:BBWI)’s comparable sales and revenues fell short of expectations, and earnings were only slightly above forecast, still down 7.5% from the previous year. Bath & Body Works (NYSE:BBWI)’s management also provided a bleak outlook, cutting both current quarter and full-year earnings forecasts.

“Finally, Bath & Body Works. The struggling mall retailer reported another bad quarter today. Shares sunk 7%. Comparable sales missed, revenues missed, and the only earnings came in just a penny better than expected, which was still down 7.5% year-over-year. Worse, management guidance for the current quarter was horrific, and they slashed their full-year earnings, their full-year forecast.

CEO Gina Boswell says that, quote, “They’re taking a prudent approach,” end quote, to their outlook by cutting numbers. So I’ll take the prudent approach and tell you: Please don’t go near Bath & Body Works. You can go to Bath and Body Works, it smells nice. You walk by it, I always like—can you smell it? I smell it right now. I mean, like, you can just, like, you know, reflect on it. It’s like International Flavors & Fragrances. It’s right here, or maybe it’s here in the Vegas nerve.

Bottom line, looking back at the last 24 hours in retail: Nordstrom and Kohl’s deserved a rally today, but they’re both very much in show-me mode, especially Kohl’s. Abercrombie and Foot Locker got hit way too hard. I really like the Foot Locker. ANF, great buying opportunity. As for PVH, Bath & Body Works, all I can say is, as our—as the man who is behind so much of the greatness of the show, Cliff Mason, used to say: “If you lie down with dogs, you wake up with fleas.”

Bath & Body Works (NYSE:BBWI) represents a strong investment opportunity due to its solid brand loyalty, successful product innovation, and efficient cost management. As a top player in personal care and home fragrance, Bath & Body Works (NYSE:BBWI) has shown resilience in a challenging retail landscape by leveraging its well-established brand and deep customer connections. In its Q2 2024 earnings report, Bath & Body Works (NYSE:BBWI) exceeded expectations with $1.56 billion in net sales.

Bath & Body Works (NYSE:BBWI)’s focus on innovation, particularly in fragrances and body care, has driven steady consumer demand. Its strong profit margins, supported by strategic pricing and careful inventory management, have maintained profitability despite inflation. Additionally, Bath & Body Works (NYSE:BBWI) is growing into new areas like wellness and home care and investing in its digital capabilities to improve e-commerce and the overall shopping experience.