Why Bath & Body Works, Inc. (BBWI) Went Down On Friday?

We recently published a list of 10 Firms Suffer Amid Optimistic Market Environment. In this article, we are going to take a look at where Bath & Body Works, Inc. (NYSE:BBWI) stands against other firms that suffer amid optimistic market environment.

Wall Street’s main indices recovered losses on Friday, as investors repositioned portfolios while digesting the ongoing trade tensions between the world’s two largest economies.

After a battering this week, the Nasdaq finished the day up 2.06 percent; the S&P 500 rose 1.81 percent; and the Dow Jones grew 1.56 percent.

Ten companies, on the other hand, defied a wider market optimism, recording modest losses during the day. In this article, we have listed Friday’s worst performers and detailed the reasons behind their declines.

To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume.

A female customer browsing a variety of body care products in a retail store.

Bath & Body Works, Inc. (NYSE:BBWI)

Bath and Body Works saw its share prices tumble by 3.55 percent on Friday to end at $26.64 each as investors repositioned portfolios amid the company’s risks from the ongoing global trade tensions.

Earlier this year, BBWI forecast annual sales largely below expectations as it grapples with uncertainties in consumer spending due to the US-China trade war.

In the latest update, Beijing retaliated with a 125-percent tariff on US goods but signaled that if the US continues to raise tariffs, it would not respond.

“Given the current level of tariffs, U.S. goods exported to China are no longer market-viable,” the Chinese Ministry of Finance said in a statement announcing the new levies.

Meanwhile, BBWI still earned an upgraded rating of Overweight from investment firm Piper Sandler, saying that, along with Inter Parfums, it was well-positioned to benefit from the increasing demand in the fragrance category.

Overall, BBWI ranks 5th on our list of firms that suffer amid optimistic market environment. While we acknowledge the potential of BBWI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BBWI but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.