Graphene Investments sold 114,700 BBWI shares, valued at $2.95 million, representing 1.85% of assets under management. The stake dropped to zero post-sale, previously accounting for 1.9% of AUM. The fund’s top holdings now include GOOGL, AAPL, NVDA, MSFT, and AVGO. BBWI stock fell 39.5% to $21.45 over the past year.

The decision by Graphene Investments to completely exit Bath & Body Works reflects a loss of confidence in the struggling retailer’s turnaround. The company saw a 25% stock drop after disappointing Q3 results, with revenue down 1% and adjusted EPS missing expectations. Analysts remain skeptical about a near-term recovery, with BBWI stock down 40% in the last year.

Investors considering Bath & Body Works stock should be aware of the high-risk bet it represents, despite strong free cash flow and market dominance. The company’s challenges include increased competition, margin erosion, and execution uncertainty. For contrarian value investors, the stock may present an opportunity with a multi-year recovery timeline.

Read more at Nasdaq: Graphene Investments Liquidates Entire $2.95 Million Bath & Body Works Stake Amid Turnaround Challenges