Dan Loeb Pulls Plug On Tub & Physique Works Stake As Gross sales Decline – Tub & Physique Works (NYSE:BBWI)

Billionaire Dan S. Loeb, the founding father of Third Level, exited his stake in Tub & Physique Works, Inc. BBWI within the fourth quarter of 2024.

Particulars: As of the third quarter of 2024 filings, the investor had 11,785,000 shares in the corporate.

Notably, Loeb has been chopping stakes in Tub & Physique Works within the final couple of quarters. Earlier, he held 11,975,000 shares as of the second quarter of 2024, 12,850,000 shares as of the primary quarter of 2024 and 13,850,000 shares as of the fourth quarter of 2023.

• In February, the corporate reported a fourth-quarter gross sales decline of 4.3% year-on-year to $2.788 billion, beating the analyst consensus estimate of $2.777 billion and adjusted EPS of $2.09 exceeded the consensus estimate of $2.05.
• Additionally, Tub & Physique Works offered steerage for FY25 EPS of $3.25 – $3.60, with an estimate of $3.60 and internet gross sales development of 1% – 3%.
• The corporate sees first-quarter FY25 EPS of $0.36 – $0.43 towards an estimate of $0.44, and expects internet gross sales development of 1% – 3%.
• S&P Dow Jones Indices disclosed that Tub Physique Works will likely be faraway from S&P SmallCap 600 and added to S&P MidCap 400 Index on March 24, 2025.

Analysts Views

• Telsey Advisory analyst Dana Telsey writes that the earnings steerage “seems prudently conservative,” because it displays the influence of U.S. tariffs on China and continued macro uncertainty.
• JPMorgan analyst Matthew Boss upgraded the ranking from Impartial to Obese and raised the worth forecast from $41 to $47. The analyst cited that the brand new collaboration with Walt Disney Co might result in an inflection on each revenues and earnings in fiscal 2025.
• Goldman Sachs analyst Kate McShane says that the inventory stays undervalued, and there will likely be an upside potential when the corporate doubtless begins to put up sustainable top-line development over the subsequent few quarters.
• Financial institution of America analyst Lorraine Hutchinson feedback that buyers are sometimes involved that Common Unit Retail (AUR) will weaken as the corporate depends on promotions to drive gross sales. Nonetheless, she argues that Tub & Physique Works will proceed utilizing a mixture of methods in 2025 to generate constructive conversion traits and modest AUR development.

Within the final yr, Tub Physique Works has declined round 33.2%. It underperformed the Invesco S&P SmallCap Client Discretionary ETF PSCD, which fell about 8.0% over the identical time-frame.

Additionally, the corporate considerably lagged in comparison with its closest friends Tractor Provide Firm TSCO, which rose roughly 29.6%, and Dick’s Sporting Items Inc DKS, which grew roughly 15.8% within the final one yr.

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