:max_bytes(150000):strip_icc()/GettyImages-2189635836-0cb12c04fc46498d8366919156d26840.jpg "Bath & Body Works Admits Its Stores Are ‘Overwhelming.’ Changes Are Coming.")
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Key Takeaways
- Bath & Body Works laid out a plan to zero in on its core products and make its digital and physical stores feel less overwhelming.
- A slump in consumer sentiment is weighing on many retailers, but Bath & Body Works is underperforming its peers, CEO Daniel Heaf said.
Some stores aspire to be basic. Bath & Body Works is one of them.
Bath & Body Works (BBWI) on Thursday said it’s simplifying its approach after its sales dipped 1% year-over-year and adjusted income fell 33% in its latest quarter. The retailer known for soaps, candles and skincare products overlooked its core inventory while trying to woo younger consumers, CEO Daniel Heaf said, and grew too dependent on big-name collaborations and promotions.
To regroup, the company will focus on traditional offerings, prioritize “clean” ingredients, and streamline the way its inventory appears in physical and digital stores, Heaf said on a conference call. The company—and its boss—aims to revive a stock that has cratered in 2025.
“The customer tells us that our proposition in-store is too overwhelming and confusing,” Heaf said, according to a transcript made available by AlphaSense. “The outcome that we want is to be able to entice new consumers into our stores and onto our digital platforms. They [should be able to] find what they want easily and fall in love.”
Why This News Matters
Amazon has had some success in attracting high-end brands like Dolce & Gabbana and Estée Lauder. While Bath & Body Works has a more affordable positioning, it cited luxury sellers’ move to Amazon as evidence that joining the platform won’t weigh on Bath & Body Work’s brand.
Bath & Body Works is stepping back from hair care and men’s grooming products to focus on the home fragrances and body care products people expect, Heaf said. The brand will continue refining its inventory—and lean into “clean” ingredients—while running fewer, more targeted marketing campaigns, he said. Bath & Body Works is also refining its website and app, and is preparing to launch on Amazon (AMZN).
Bath & Body Works has been lagging behind others in the sector, Heaf said, while acknowledging that consumer caution has made the environment more competitive. The retailer expects fourth-quarter sales to come in lower than last year and has lowered its outlook for the full fiscal year. Its looking to cut costs while giving its so-called Consumer First Formula time to work.
“The whole company is working with the utmost urgency,” Heaf said. “But this will take time. [Next year] will be a year of investing behind our brand to strengthen our fundamentals and position our business for sustainable long-term growth.”
Shares of the company plunged some 25% after it released its third-quarter results. Bath & Body Works reported $0.37 earnings per diluted share on $1.59 billion in sales, compared to $0.49 earnings per diluted share on $1.61 billion in sales a year earlier.
Investors continue to ditch the stock. Shares were recently off about 3%, putting them down more than 60% so far this year.
This article has been updated since it was first published. An earlier version of the headline misidentified the company covered in the story.
