A significant shift is underway at a major fragrance-driven retailer, signaling a broader rethink of how far a brand can stretch beyond its core identity.
After experimenting with new products to capture more of consumers’ daily routines, the company is now reassessing whether each category truly aligns with its long-term strategy.
This reassessment may lead to the rollback of one of its newest ventures, as the company faces mounting pressure from declining financial performance and a slowing core business.
Bath & Body Works pulls back on its laundry offerings
Bath & Body Works (BBWI) confirmed it will begin scaling back its laundry care category as it refocuses on its core product lines.
During the 2026 Semafor World Economy event, Bath & Body Works CEO Daniel Heaf said the company had begun diverting attention and resources away from its core business.
“Our core categories have not kept pace with the consumer while we have been focused elsewhere,” said Heaf, according to Retail Dive. “The strategy overall for Bath & Body Works is to be where the consumer is.”
The move reflects a broader strategic pivot, prioritizing depth in its core categories over expansion into adjacent ones, as the company works to regain momentum.
Why Bath & Body Works entered the laundry category
Bath & Body Works first expanded into fabric care in the fall of 2023, launching its initial collection across select locations in response to consumer demand, according to a company announcement.
To guide development, the company leaned into direct consumer feedback, incorporating voting tools into its loyalty platforms so shoppers could help select which fragrances to bring to the market nationwide.
The category quickly expanded to include detergents and scent boosters and rolled out across all U.S. stores a year later, according to a company announcement. The strategy aimed to extend the brand’s fragrance authority into everyday household routines.
However, translating a scent-led, in-store discovery experience into a functional, price-sensitive category like laundry proved more complex.
Unlike candles or body care, where customers often sample products before purchasing, laundry relies more heavily on repeat behavior, value perception, and performance, areas where legacy competitors already dominate.
Roberto Machado Noa/LightRocket via Getty Images
Bath & Body Works’ weakening performance adds pressure
The decision to pull back comes amid softer financial performance.
In the fourth quarter of fiscal 2025:
- Net sales declined 2% year over year.
- Net income fell 11%.
- North America store sales dropped 2.6%.
- North America direct digital sales decreased 2.5%.
The company now expects net sales to decline between 2.5% and 4.5% in fiscal 2026.
In response, Bath & Body Works is working to streamline operations and reallocate resources toward higher-performing areas.
“We are undertaking a comprehensive, end-to-end evolution of our business,” said Heaf in an earnings statement. “Building a Bath & Body Works that is more innovative, more relevant, and easier to shop. This work lays the foundation for sustained, long-term growth as we reposition the company from a specialty retailer to a premier global brand.”
Bath & Body Works’ renewed focus on core products
Central to this shift is Bath & Body Works’ “Consumer First Formula,” introduced in late 2025. The strategy focuses on four priorities:
- Product innovation: Emphasizing ingredient-led, trend-driven products in core categories while simplifying assortments
- Brand relevance: Investing in cultural impact, marketing, and signature fragrance franchises
- Customer reach: Expanding across digital, physical, and wholesale channels
- Increase speed and efficiency: Reducing complexity and reinvesting savings into growth
The pullback from laundry underscores the broader retail reality that not every adjacent category strengthens a brand, even when it appears to align on the surface.
Coverage on more halted expansions:
- 44-year-old gas station chain makes rare closure after 26 years
- Dunkin’ could exit an entire market in 2026 after 14 years
- Fashion brand shuts down website, all stores may close
- 115-year-old fashion brand exits entire market in 2026
Analysts remain cautious about the company’s trajectory. Concerns persist around a “weak” core business, with expectations that sales could remain under pressure without stronger investment to drive traffic and engagement, according to Simply Wall Street.
“We expect continued topline and operating margin pressure in 2026 as management continues to reset the business,” said Telsey Advisory Group analyst Dana Telsey, as reported by Reuters.
Bath & Body Works expands its digital presence
At the same time, Bath & Body Works is accelerating its digital transformation.
Long known for its strong in-store experience, including its upgraded “Gingham+” store design introduced in 2025, the company is now investing more aggressively in its online presence.
“We don’t lead with channel, we lead with the consumers,” said Heaf at the event. “We must get into the business of running a serious digital business that inspires and connects consumer journeys.”
That shift aligns with broader industry trends. U.S. E-commerce spending reached approximately $1.34 trillion in 2024 and is projected to surpass $2.5 trillion in 2030, according to Capital One Shopping.
In February 2026, Bath & Body Works expanded its digital reach further by launching on Amazon U.S., offering a curated assortment of its most recognizable products.
“We’re making discovery easier and elevating the brand at every touchpoint, ensuring a consistent, trusted experience that builds loyalty,” said Bath & Body Works CCO Maly Bernstein in the announcement.
Related: 39-year-old grocery chain closing 17 stores in 2026
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