Quick Facts
- Bath & Body Works e-commerce grew for the first time since its 2021 L Brands spinoff, improving four percentage points quarter-over-quarter in Q2 fiscal 2025.
- CEO Daniel Heaf flagged a major gap: the soaps and sanitizers category sells 40%-45% online industrywide, but Bath & Body Works captures only 20% of its own sales digitally.
- The company launched on Amazon in February 2026 and unveiled a $250 million cost-savings plan tied to a broader transformation strategy called the Consumer First Formula.
Bath & Body Works returned its digital business to growth in the second quarter of fiscal 2025, ending a four-year stretch without e-commerce gains that began when the company split from L Brands in 2021.
The retailer posted Q2 net sales of $1.5 billion, up 1.5% year over year and at the high end of guidance. E-commerce improved four percentage points from Q1, when the company first reported roughly a 10% lift in conversion rates among new shoppers.
CEO Daniel Heaf, who joined from Nike where he led the Nike Direct division to $22.3 billion in sales, has been direct about what he inherited. “Bath and Body Works has the worst digital proposition I have ever seen,” Heaf said. He attributed the gap to the company’s post-spinoff identity as a stores-first business, where the online channel functioned mainly as a replenishment tool for customers who could not reach a store.
The opportunity is large. In soaps and sanitizers, 40% to 45% of category sales happen online. Bath & Body Works currently captures just 20% of its own sales in those items through digital channels.
“Digital is not just a place to transact,” Heaf said. “It’s a place to tell the story of our brand.”
Heaf was measured about the milestone. “One quarter doesn’t make a digital turnaround,” he said, adding that a better overall digital experience would drive traffic and conversion across all channels over time.
Full-year 2025 net sales guidance was narrowed to 1.5% to 2.7% growth against $7.307 billion in fiscal 2024. The company also raised the low end of its adjusted earnings per diluted share guidance from $3.25 to $3.35, with the full range set at $3.35 to $3.60.
The Strategy Behind the Shift
In November 2025, Bath & Body Works unveiled the Consumer First Formula, a four-pillar transformation plan covering product innovation, brand building, marketplace expansion, and operational efficiency.
The efficiency pillar targets $250 million in cost savings over two years, with more than half identified for 2026. Management said those savings will be reinvested into revenue-generating initiatives rather than flowing directly to the bottom line.
On the marketplace side, investments are focused on the app and website to reduce purchase friction, simplify product discovery, and amplify brand storytelling. The company’s loyalty program, with 39 million members, anchors personalization efforts through exclusive releases and targeted promotions.
Amazon Entry Marks a Structural Shift
On Feb. 20, 2026, Bath & Body Works launched its first authorized storefront on Amazon in the United States. The debut included bestsellers such as Champagne Toast, Mahogany Teakwood, and Eucalyptus Spearmint.
Under the arrangement, Bath & Body Works retains inventory ownership and controls pricing. The company uses Amazon’s fulfillment network to qualify products for Prime eligibility.
The Amazon launch represents a meaningful departure from the brand’s historical reliance on owned channels. For operators watching how heritage retail brands close the gap with digital-native competitors, Bath & Body Works is now a live case study.
The company operates 1,934 locations in the U.S. and Canada and 544 international franchised stores, giving it a physical base to support omnichannel ambitions as the digital rebuild continues.
