Dive Brief:
- Bath & Body Works is pursuing a “Consumer First Formula” strategy to turnaround the business and drive sustainable growth, executives said on a Q3 2025 earnings call last week.
- As part of that strategy, the business plans to make the in-store experience “less overwhelming,” and will be cutting back on in-store product assortment, CEO Daniel Heaf said. It also will make discovery “effortless.”
- “From my first day, we have refocused on putting the consumer at the center of everything we do and listening closely to their feedback and insights,” said Heaf, who joined the company in May.
Dive Insight:
Bath & Body Works’ third quarter results “don't live up to the expectations we all have for this brand,” Heaf acknowledged on the earnings call.
The retailer reported third quarter results that were below expectations, according to an earnings report. Net sales declined 1% year over year to $1.6 billion, and net income decreased more than 27% year over year to $77 million.
The brand has been slow to meet consumers' changing needs and has fallen behind where competitors have not, Heaf said.
“Over the years, consumers have evolved,” Heaf said. “They seek greater efficacy, ingredient-led products, modern packaging, emotive storytelling and elevated multichannel experiences. Our competitors have risen to meet those needs. We have not.”
The retailer aims to make discovery effortless through elevating retail channels and expanding distribution to meet consumers where they are. That includes a partnership to begin selling on Amazon in the first half of 2026. It is also planning to permanently lower its free shipping threshold in early 2026.
“We will make it simpler for a new and young consumer to find us, love us and buy us wherever they shop,” Heaf said.
The brand is also focusing on its online experience and recently refreshed its mobile website. It plans to continue enhancing its app and websites to “increase engagement, to make product discovery easier, to deliver richer brand and product stories and to reduce purchase friction,” Heaf said.
The brand designed two consumer muses, whom Heaf described as “Jen, who demands bold fragrance, fun, seasonality and value, and Zoe, who craves clean products with elevated scent and design at an accessible price point.” These characters are meant to keep the customer front and center and guide brand decisions from start of product development.
