How Is Bath & Body Works Stores Growth Expected To Trend And Why?
Bath & Body Works (BBW) is globally the largest specialty retail beauty brand with over 100 million annual transactions. It is the Number one brand in America for body lotion, shower gel, fine fragrance mist, liquid hand soap, hand sanitizer, and aromatherapy. BBW Stores contributes to around 26% of L Brands’ revenues and~ 20% of our stock price valuation for the company. The segment is expected to grow well with a CAGR of over 4% between 2016 to 2023. Below, we outline some of the reasons for this.
Reasons Behind The Expected Growth
- The brand targets shoppers who love products that are more sophisticated than drugstore brands and yet who like their products to be pocket-friendly. This is a major appealing factor about the brand.
- Currently, Bath & Body Works stocks over 200 private label scents and they are a diverse portfolio of new and old perfumes, some as old as 15 years. Launching new products is a key growth strategy for Bath & Body Works.
- The company is particularly focused on introducing new fragrances and anti-bacterial products, which should result in an increase in the division’s revenue per square foot going forward.
- For its key categories, the brand has always been on top of changing seasons, and it introduces new and relevant products frequently.
Have more questions on L Brands? See the links below.
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for L Brands