Jim Cramer’s Game Plan: 13 Stocks in Focus

10. Bath & Body Works, Inc. (NYSE:BBWI)

Number of Hedge Fund Holders: 36

Cramer pointed out Bath & Body Works, Inc.’s (NYSE:BBWI) last two forward outlooks that led to a decline in the stock. Here’s what Mad Money’s host had to say:

“Retail earning season continues on Monday with Bath & Body Works. These guys held e-commerce competitors much longer, they had them at bay much longer than other mall-based retailers, but the stock’s been out of favor for a couple of years now. Believe it or not, the company’s last two quarters have been okay, but both times, Bath & Body Works gave discouraging forward outlooks that crushed the stock. It’s fallen from the low $50s at the end of May to around $30 now. Have expectations finally come down enough? If they can give us some positive commentary on the holidays, then it would go a long way in this market.”

Bath & Body Works (NYSE:BBWI) is a prominent retailer specializing in home fragrances, body care, soaps, and sanitizers. Operating under several brand names, the company is recognized for offering a wide range of personal care and home fragrance products. For the third quarter, it reported net sales of $1.61 billion, marking a 3.0% increase from the same period in 2023. Despite the increase in sales, the company’s earnings per diluted share for the third quarter were $0.49, slightly down from $0.52 in the prior year.

The third-quarter operating income stood at $218 million, a decrease from $221 million in 2023. Similarly, net income also dropped to $106 million from $119 million last year. Amidst a challenging retail environment and softer demand in the market, the company introduced a new winter fragrance collection that includes products like Winter Candy Apple and Frosted Coconut Snowball.

These new offerings are part of Bath & Body Works’ (NYSE:BBWI) strategy to remain competitive and appeal to customers during the holiday season. CEO Gina Boswell explained that the company is leveraging its flexible business model and primarily U.S.-based supply chain, and the company feels confident in its ability to navigate a turbulent retail landscape and a shorter holiday season. Boswell expressed satisfaction with the company’s strong performance and the momentum it is gaining as it enters the crucial holiday season.