Bath & Body Works Has a New Activist Investor Knocking on the Door
Synopsis
Barington Capital has taken a 0.38% Bath & Body Works stake and is seeking a potential sale, board representation and share repurchases. The retailer reported lower second-quarter sales but higher net income.
Bath & Body Works has been on the ropes after Barington Capital Group acquired 0.38 percent in the US retailer and asked the company to explore the option of being sold.
According to LSEG information service data, Barington owns around 780,000 shares as of June 30.
The investment firm believes that Bath & Body Works is undervalued, and it wants the company to hire advisors to identify potential buyers, said Chief Executive James Mitarotonda.
Barington Seeks Board Representation
Bath & Body Works sale is part of a turnaround plan for the retailer. Barington is seeking Board representation, and it is also pressing for the company to buy back shares.
The investor plans to unveil the letter in the following weeks in the public forums before the board votes on the proposal. Neither Bath & Body Works nor Barington immediately commented on the reports.
Shares of Bath & Body Works climbed nearly two percent after news of the campaign broke. They have dropped almost 13 percent so far this year.
Latest Results Put Focus on Sales Performance
Net sales for the second quarter of fiscal 2026 were $1.514 billion, which was a year-over-year decline of 2.3%. Net income grew to $118 million compared to $64 million and operating income to $216 million from $157 million.
The company’s sales in the United States and Canada fell 5.4 percent to $1.131 billion, but direct sales rose 3% to $275 million, while international and other sales grew 24.9 percent to $108 million.
Bath & Body Works has recorded net sales of $7.291 billion for fiscal 2025, which was a decrease of 0.2% from $7.307 billion in the same period last year. Its net income was $649 million, down from $798 million a year earlier, while its operating income was $1.126 billion, down from $1.266 billion a year ago.
The company is forecasting that fiscal 2026 net sales would be lower by 2.5 percent to 4.5 percent than the fiscal 2025 numbers. The company’s latest estimates are that it will record $3.00 to $3.25 diluted earnings per share (EPS) for fiscal 2026 against $3.11 in the previous year.
The Bath & Body Works sale campaign marks another step in the turnaround plan for the retailer led by Chief Executive Officer Daniel Heaf, after tepid traffic at its stores.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
