One of the most scented retailers in America is well positioned in the face of the prices.
Bath & Body Works produces 80% of its products in the United States. The candle manufacturer and the personal care company gradually moves its production to the United States for more than a decade.
“The domestic exhibition Place Bath & Body Works has a key advantage compared to competitors, because they will not have to pay import rates on the vast majority of their products, which means that they can keep prices where they are and not lose profitability,” said Lorraine Hutchinson, main analyst of Bofa Securities.
The main American manufacturing installation of Bath & Body Works, Beauty Park, is located in New Albany, Ohio, and opened in 2012.
“It was a choice made to ensure that they could test, react and move to the consumer very, very quickly,” said Simeon Siegel, Managing Director of BMO Capital Markets. “If you can find exactly what the customer buys, you can minimize the necessary discounts. It turns out now … the price conversation also creates them like this surprise winner.”
Bath & Body Works says that its foaming soap, for example, took about 3 months to reach its distribution center. The bottle and the ceiling would send Canada and the pump would send China. The soap bottle would be filled in Virginia and then sent to its distribution center in Ohio. Now, this whole process is done in the beauty park – in 3 weeks.
The company has seen its net sales gradually decrease since 2021, when it brought in nearly $ 7.9 billion, the demand for hand disinfectants, candles and soap was raised in the middle of the pandemic. Bath & Body Works guidelines in 2025 represent the first time in several years that sales should grow.
“There is an idea that Bath & Body Works is only tracing trends. It is just up and down and that people die for income growth, naturally. If in place, we recognize that income has been limited because people have bought too many candles during, hope it, a little more consistent,” said Siegel.
Watch the video to find out more About what analysts believe in reserve for Bath & Body Works.
