Bath & Body Works, Inc. (BBWI)

Bath & Body Works' stock (BBWI) has experienced significant declines over the past six months. The company reported soft third-quarter fiscal 2025 results, leading to a stock plunge and a trimmed outlook for the rest of 2025. Analysts downgraded the stock, citing concerns about falling sales, tougher competition, low traction with younger shoppers, and a longer-than-expected recovery path. In response, Bath & Body Works unveiled a "Consumer First Formula" transformation strategy aimed at rejuvenating its brands, product lineup, and marketplace presence. Earlier in the year, Bath & Body Works reported strong fourth-quarter fiscal 2024 results, exceeding guidance for both net sales and earnings per diluted share, driven by strong traffic and conversion.

Demand for Bath & Body Works products exhibits distinct seasonal patterns. Candle demand peaks around holidays, particularly in November and December, driven by holiday gifting, and declines post-holiday before recovering in March to May. Summer scents demonstrate seasonality, with search interest peaking in early spring, around April, and then declining sharply by mid-summer.

Bath & Body Works, Inc. (BBWI) is a leading American specialty retailer focused on personal care and home fragrance products, operating within the Retail Trade sector, specifically in the Specialty Stores and Clothing/Shoe/Accessory Stores industries. The company offers a wide array of products, including fine fragrance mists, body lotions and creams, 3-wick candles, home fragrance diffusers, liquid hand soaps, and sanitizers, marketed under the Bath & Body Works and White Barn brand names.

As of November 1, 2025, Bath & Body Works operates 1,934 company-operated stores across the U.S. and Canada, along with 544 international franchised locations and an online storefront. The international presence includes locations in the Middle East, Asia and Australia, the Americas, Europe and the UK, and the Caribbean. The company's supply chain is predominantly U.S.-based, with six company-operated distribution and fulfillment centers primarily located in central Ohio.

Bath & Body Works has focused on strengthening its brand connection with consumers through initiatives like its "Come Back To Your Senses" creative platform. However, the brand's reputation has also faced challenges, including an "overreliance on collaborations and promotions" that has "eroded brand equity." Bath & Body Works has been described as "slow and inefficient" in attracting new and younger shoppers and has not adapted to modern consumer needs as effectively as competitors. These issues have prompted the company's new "Consumer First Formula" strategy to "reclaim cultural relevance" through targeted marketing and by making products more accessible to younger demographics through new channel expansions.

Bath & Body Works (BBWI) is primarily owned by institutional shareholders, who hold approximately 49.68% to 95.14% of the company's stock. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., Fmr Llc, Victory Capital Management Inc, State Street Corp, Jpmorgan Chase & Co, and Alliancebernstein L.p. Individual investors and public companies own approximately 20.46% to 29.29% of the stock, while insiders hold about 0.57% to 19.32%. Leslie H. Wexner is noted as the largest individual shareholder.