Bath & Body Works Expands to 600+ Ulta Stores, Drives 11% Stock Jump
UA•Bath & Body Works Q1 net sales fell 3.2% year-over-year as mall foot traffic cooled, and shares declined 25% versus the broader market. A July 12 deal placing fragrances and candles in 600+ Ulta Beauty stores and online, plus a planned Amazon launch, fueled an 11% stock jump.
1. Q1 Financial Performance
In the first quarter, net sales declined 3.2% year-over-year as mall foot traffic softened and consumers cut discretionary spending. Over the past year, the company’s shares fell 25% compared with a 20% gain in the broader market, reflecting pressure on its traditional retail model.
2. Ulta Beauty Distribution Deal
Starting July 12, signature fragrances, body creams and three-wick candles will roll out in more than 600 Ulta Beauty stores and on Ulta’s online platform. This partnership provides an immediate channel expansion without the overhead of new store openings.
3. Amazon Online Expansion
Following a February entry onto a major e-commerce marketplace, the upcoming Amazon launch adds another digital avenue. Management views these omnichannel moves as essential to reaching younger, value-driven consumers beyond mall shoppers.
4. Market Reaction and Outlook
News of the Ulta deal triggered an 11% share rally over two days, signaling investor approval of the strategic pivot. By diversifying distribution, the company aims to stabilize growth as traditional mall reliance continues to wane.
