By Megan Graham

Bath & Body Works plans to reignite its brand after disappointing results in part through creative marketing, a more aspirational image and influencers, according to executives.

The Columbus, Ohio-based retailer of body products and scented candles last week slashed its forecast as it reported a drop in quarterly sales and earnings. It now expects sales this year to decline by a low-single-digit percentage, compared with a previous estimate of gains of up to 2.7%.

Bath & Body Works executives blamed the poor results on previous leadership's effort to create growth through new categories like laundry detergent, a strategy that neglected its core categories like body care and sanitizers. The company began using discounts to drive sales, which then eroded price integrity and brand loyalty, executives said.

"Over-reliance on promotion delivers diminishing returns and erodes brand equity, and that is what has happened here," Chief Executive Officer Daniel Heaf, a former Nike executive who joined the company in May, said on a call with investors. "While all these efforts appealed to our existing consumers, they did not grow our customer base and we have not attracted a younger consumer."

The company will now pursue long-term growth by instead focusing on creating products that serve consumer needs, reinvigorating its brand, reclaiming cultural relevance, making it easier for consumers to discover products and operating with more speed and efficiency, Heaf said.

Bath & Body Works becomes the latest to embark on a turnaround plan after a bid for new growth fell flat. Kohl's is trying to undo missteps that included scaling back petite sizes, fine jewelry and private brands in its stores. And Cracker Barrel abandoned a new logo and restaurant remodeling program after a headline-generating backlash.

The good news is that the company's brand remains strong, according to analysts. "Unlike many turnaround stories, Bath & Body Works' brand equity is not the core issue, with nearly universal brand awareness in the U.S. and solid brand affinity from the core customer," Barclays analysts wrote in an equity research note last week. Its message instead "has been diluted by years of predictable promotions, a less-elevated market positioning and, at times, overwhelming customer choices."

Bath & Body Works plans to market fewer products, back them with stronger creator advocacy and make its broader brand more aspirational, executives said.

Its new Touch of Gold fragrance quickly became a top-seller when it debuted in September, Chief Marketing Officer Jamie Sohosky said.

Although Bath & Body Works' portfolio of scents still resonate with its existing customers decades after its first store opened, the company wants more, according to Sohosky.

"We want our brand to be a beacon for younger consumers who seek greater efficacy, ingredient-led innovation, modern packaging and compelling storytelling," she said in an email.

The company is trying to get a new look from consumers with more creative marketing. It recently installed scent diffusers with its Fresh Balsam fragrance in New York City's Grand Central Terminal to accompany its messaging for four weeks. Movie theaters in New York, Los Angeles and Chicago will also disseminate the Fresh Balsam scent while playing Bath & Body Works' new holiday ad. New interactive kiosks will help promote its scents in malls and train stations.

"Some of those biggest fragrances are doing over $250 million a year annually, and they sit on a shelf in the left hand side of our store, and they operate somewhat like an annuity," Heaf said. "Customers come in and they buy them, but we haven't treated them with the reverence and with the marketing they expect."

And the company will start selling its products through Amazon in the first half of next year.

But Bath & Body Works will need to think big to succeed against trendy brands like Salt & Stone body care and retailers including Ulta and Sephora, said Lucille DeHart, principal and retail brand adviser at MKT Marketing Services.

The retailer "will need to consider the power of celebrity and exclusivity -- think Sydney Sweeney and Kylie Jenner," DeHart said.

Bath & Body Works would be wise to find unique or unexpected distribution channels in other stores and to create seasonal destination items for its own stores, much like Starbucks' "Bearista" cups or Trader Joe's micro totes, according to DeHart. And with its reputation for no animal testing and social compliance, among other attributes, the company has the opportunity to elevate its messaging, DeHart said.

"Starting with a limited-edition products collab and further leveraging their brick-and-mortar presence for some bespoke experiential pop-up moments -- like a make-your-own-candle station -- would further complement the momentum the company is looking to achieve," she said.

Write to Megan Graham at megan.graham@wsj.com

(END) Dow Jones Newswires

November 25, 2025 14:28 ET (19:28 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.