Bath & Body Works has faced a challenging market since its split from former L Brands stablemate, Victoria’s Secret, in 2021. The largest speciality home fragrance and body care retailer in the US has experienced share value declines and up-and-down results as it builds a stronger future.

Annual revenues declined 4.09 per cent to US$7.56 billion in 2022, but the company remains the 5th highest-ranking player in the US beauty and personal care industry after Procter & Gamble, Estée Lauder, Colgate-Palmolive and SC Johnson.

The company’s stocks surged 10 per cent last week after its bottom line beat industry forecasts for Q1 2023. The company reported net sales of US$1.4 billion for the period and updated its full year forecast to mirror its better-than-expected results.

At the peak of the Covid-19 crisis, consumers boosted the fortunes of Bath & Body Works with a strong demand for cleansers, sanitisers and candles. As the world returned to normal after pandemic restrictions there was a dip in sales in the categories. But the retailer has seen growth of nearly 50 per cent through its men’s business and Men’s Shop strategy over the past three years and is planning a major expansion.

We are building on the success of the men’s business to include grooming, initially focusing on face and beard care, said Julie Rosen, president of Bath & Body Works. “Later this year, introducing men’s hair and shaving. In addition, in July the team will launch haircare in approximately 560 stores in the US and online with shampoo, conditioner and a dry shampoo. The company is also gearing up to launch a laundry line. More launches in the wellness category are also in the works.”

New products in the men’s lineup already launched in the US, include Beard & Scruff Cream, Beard Oil, Hydrating Face Cream and Daily Face Lotion.

“Looking ahead, we are moving with purpose, focused on taking actions and building capabilities that will drive growth”, said Gina Boswell, CEO of Bath & Body Works. “Despite the current macroeconomic pressures, I continue to be confident in our ability to reach our US$10 billion sales target and deliver industry-leading operating margins.”

Boswell, a beauty industry veteran whose CV includes senior appointments at Unilever, Estée Lauder and Alberto Culver, became the new CEO of Bath & Body Works last December. The company’s new loyalty program, launched during the Northern Hemisphere summer, has enrolled 37 million members to date and has been instrumental in driving more trips to stores and increasing spending, she notes.

Bath & Body Works has 1800 company-operated store in the US and Canada and more than 425 international franchised locations, including Australia.

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