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.

  • What Is L Brands' Revenue And EBITDA Breakdown?
  • How Has L Brands' Revenue And EBITDA Composition Changed Over 2012-2016E?
  • L Brands Q4 2015 Pre-Earnings Report
  • L Brands 2015 Year In Review
  • How Was L Brand's Monthly Performance In February 2016?
  • How Was L Brand's Monthly Performance In March 2016?
  • What Is L Brands' Fundamental Value Based On 2016 Estimated Numbers?
  • How Did L Brands' Different Segments Perform Over The Last 5 Years?
  • What Are The Key Takeaways From L Brands Q1 FY2016 Earnings Results?
  • Why Is Victoria's Secret Undergoing Restructuring Changes?
  • Key Takeaways From L Brands May 16 Performance Report
  • Why Has L Brands' Stock Price Declined By Around 30% Year-To-Date?
  • Which Is The Most Important Segment For L Brands' Future Growth?
  • How Was L Brands' Monthly Performance In June 2016?
  • L Brands Q2 FY16 Earnings Preview
  • L Brands Delivered A Moderate Q2, Restructuring Activities Progressing On Track


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

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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