What Happened?
Shares of personal care and home fragrance retailer Bath & Body Works (NYSE: BBWI) jumped 3.5% in the morning session after it announced a partnership with Ulta Beauty to sell its products in Ulta stores.
The collaboration will bring a curated assortment of Bath & Body Works' body care and home fragrance products to more than 600 Ulta Beauty stores across the U.S. and its website, starting July 12, 2026. This move is part of the company's broader strategy to expand beyond its own retail locations and reach new customers where they already shop for beauty products. The goal is to evolve from a specialty retailer into a leading global brand. In response to the news, Wells Fargo raised its price target on the stock to $26 from $25, maintaining an Overweight rating.
After the initial pop, the shares cooled down to $21.45, up 3.5% from the previous close.
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What Is The Market Telling Us
Bath and Body Works’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 22.9% on the news that the company reported disappointing third-quarter results and provided a weak full-year profit forecast.
The personal care retailer's third-quarter revenue was flat year-on-year at $1.59 billion, missing analyst expectations of $1.63 billion. Its earnings of $0.37 per share also fell short of the consensus estimate of $0.39. Compounding the miss, Bath & Body Works issued full-year earnings per share guidance with a midpoint of $2.83, which was 16.1% below what analysts had been forecasting. The results pointed to ongoing demand headwinds, as the company's same-store sales have been declining over the last two years.
Bath and Body Works is up 3.4% since the beginning of the year, but at $21.45 per share, it is still trading 36.3% below its 52-week high of $33.65 from July 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Bath and Body Works’s shares 5 years ago would now be looking at only $297.37.
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