Green shoots are starting to appear thanks to Bath & Body Works’ new strategy, but growth won’t return until at least 2027, according to chief executive officer Daniel Heaf.
Dubbed the consumer first formula, Heaf’s strategy aims to boost innovation in core categories and exit categories like hair and men’s grooming; reignite brand position through more targeted brand moments and deeper creator advocacy, and acquire new consumers by meeting them where they are.
“The pivot from strategy to action has been quick, and we are now doing things at pace, and the consumer is starting to feel the difference,” Heaf said. “But for a company this size it just takes time to see those new product franchises and see that idea of the brand. So we don’t expect to grow in 2026 but we’re doing absolutely everything that we can to make sure that we return to growth as soon as possible. It is on everybody’s minds.”
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His comments came as Bath & Body Works reported net sales of $2.7 billion for the fourth quarter ended Jan. 31, a decrease of 2 percent compared to a year earlier. That topped the $2.62 billion Wall Street analysts had penciled in.
Earnings per diluted share were $1.99 — down from $2.09 a year earlier, but above Wall Street estimates of $1.78. Net income totaled $403 million, down from $453 million.
While both these markers beat estimates, the company is forecasting that sales will decline between 4.5 and 2.5 percent this year.
Bath & Body Works has been increasing distribution, launching at college bookstores last year and debuting on Amazon in February.
“It’s too early to give performance reads,” said Heaf. “We’re happy with where we are, and I have no doubt that it’s going to be successful. It’s a big part of our strategy. I expect overall our wholesale revenues to ramp up through the year. We’re looking at about $50 million in total.”
The college bookstore business has already increased from 600 locations to 1,000 and is evolving the offering.
“We’ve got this new product that’s coming in the back half, which is targeted at new and younger consumers,” Heaf said. “It’s efficacious. It’s beautifully designed. It comes with amazing marketing. I think that those will resonate even more when we put them in front of a younger audience and put them strategically on college campuses.”
Heaf is also refocusing Bath & Body Works on its core categories — including body care, home fragrance, hand soaps and sanitizers, and gift sets — after the firm pursued adjacent ones for several years.
“That is really the lion’s share of our focus,” he said. “So if we think about where we’re investing, specifically in product, it is all into our core categories. And in 2026 really into body care. We’re focused on new fragrances, new forms.”
