The company is feeling the effects of inflationary pressures on consumer discretionary spending.

Andrew Willis: Not to be confused with Bed Bath and Beyond, this company's sales actually went up over the pandemic. Way up. But more recently, the number-one bath, body, and beauty store in America has seen a slowdown in sales as customers skip the scented candles to help pay for grocery bills.

Bath and Body Works is feeling the effects of inflationary pressures on consumer discretionary spending, which may be worrying some investors, but we have to keep in mind this comes after a whopping 45% increase in sales compared to prepandemic figures. Senior equity analyst Jaime Katz says that inflationary and supply chain tensions should eventually subside, and Bath and Body Works has demonstrated an ability to maintain and gain market share independent of external conditions. 

Even now, the company is considering expanding its target market into skincare and haircare, which, with the launch of a new loyalty program, should encourage some discretionary spending among up to 60 million consumers.  

From Morningstar, I’m Andrew Willis.

Check out Morningstar.ca to watch Why is Amazon so Cheap?

Andrew Willis does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.

© Copyright 2022 Morningstar, Inc. All rights reserved. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Terms and Conditions Privacy Center Disclosures Member User Agreement Corrections Cookies Accessibility