Bath & Body Works cut to Hold at Argus on online competition, slowing sales

As previously reported, Argus downgraded Bath & Body Works to Hold from Buy. The analyst notes that the mall-based segment of retail where the company competes has been under increasing pressure from online retailers who are rapidly gaining share. Argus added that the economic uncertainty is also substantially impacting sales, as consumers remain cautious with their purchases, noting that Bath & Body Works FY23 sales declined 4% from FY22, and its management anticipates FY24 sales to be flat or down mid-single digits.