New York City-based activist investment firm Barington Capital Group has increased its stake in Bath & Body Works, according to reports from Reuters and Bloomberg. The group is reportedly urging the personal care and fragrance retailer to explore a potential sale of the business.
Barington’s alleged intervention may increase pressure on Bath & Body Works to accelerate its turnaround or consider a strategic transaction. If the retailer were to go to market, it could present one of the largest specialist fragrance and personal care takeover opportunities for private equity firms or strategic buyers.
Barington held approximately 780,000 shares, representing a 0.38% stake, as of June 30, 2026, according to London Stock Exchange Group data cited by Reuters. However, with its recent acquisitions, Barington now owns over one million Bath & Body Works shares.
According to Reuters, while shares of the Ohio-based company rose about 2% in extended trading, its stock has fallen nearly 13% so far this year.
Bath & Body Works has 1,937 company-operated stores in the US and Canada and 596 international partner-operated locations, including travel retail.
Neither party has commented publicly since reports surfaced.
A challenging environment
The personal care and home fragrance retailer has been navigating a tumultuous consumer spending environment while pursuing a turnaround under CEO Daniel Heaf, who took over in 2025.
According to the Bloomberg report, Barington CEO James Mitarotonda has said that Bath & Body Works is undervalued, has been hampered by unstable management, and should retain advisers to seek buyers.
Reuters quotes Mitarotonda as saying that “changes are needed” at the company, suggesting that its market position, brand strength, and cash generation should attract “significant buyer interest,” including from private equity.
The investor wants the retailer to appoint advisors to explore a sale, while also calling for share buybacks and considering seeking board representation, says Bloomberg.
Specifically, the activist investor wants Bath & Body Works to boost revenue and improve its stock price by repurchasing shares, according to a Bloomberg report. Barington reportedly plans to publish a letter to the board in the coming weeks.
In August, Bath & Body Works forecast a wider-than-expected decline in current-quarter sales, hurt by weak store traffic as well as broader weakness in mall traffic. CEO Heaf told Reuters that progress in turnaround efforts, since its early days, has yet to offset challenges across the broader business.
Mitarotonda has also blamed serial management changes over the past five years for damaging sales and the brand, the Bloomberg report stated.
Strategic moves
The personal care and home fragrance retailer’s Q2 2026 results show that net sales declined 2.3% to US$1.51 billion, while net income increased to US$118 million from US$64 million. The company projected a full-year sales decline of 2.5% to 4%.
Despite the company’s struggling recent financials and reports of share-price weakness, Bath & Body Works has been executing turnaround plans. This summer, the brand partnered with Ulta Beauty, making a curated assortment of its body care and home fragrance products available to Ulta shoppers across the US.
The move aligned with both retailers’ turnaround strategies, as they looked to expand their partnerships and reach. For Bath & Body Works, the partnership came as part of its Consumer First Formula, to revitalize the brand, refocus on core categories, and make the overall shopping experience less overwhelming for its consumers.
In July, the company also expanded its footprint into Brazil, opening its first store in São Paulo. The move was part of the company’s international growth strategy and aimed to tap into the growing regional demand for fragrance-led products.