BBWI - Bath & Body Works rallies after survey shows younger consumers are engaged with the brand

2023-03-28 11:58:58 ET

Bath & Body Works ( NYSE: BBWI ) broke higher in morning trading on Tuesday after a consumer survey conducted by Bank of America indicated a high purchase intent level for the brand.

The survey showed that only 4% of respondents are unaware of the brand and 15% liked the brand more than last year with good fragrances, quality, and promotions all cited as positive factors.

"The most fervent BBWI customer over-indexes in the Southeast, and over-indexes within the Gen X and Gen Z age cohorts. 29%/25%/27% of respondents intend to purchase more than last year in candles/hand & body lotion/soaps & sanitizers categories respectively; about half of respondents intend to purchase the same amount as they did last year in each of these categories."

BofA maintained its Buy rating on Bath & Body Works ( BBWI ) with the view that guidance leaves room for upside as cost pressures begin to subside in Q2. The BBWI business is also seen having multiple drivers in place to return to consistent sales growth in FY24.

Shares of BBWI gained 4.37% in mid-day trading on Tuesday.

Read the breakdowns on Bath & Body Works ( BBWI ) from Seeking Alpha contributors.

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