Goldman Sachs
May 11, 2026
Bath & Body Works Promotional Activity Update
Single Stock ReportEquitiesConsumer Discretionary
Goldman Sachs maintains a Neutral rating on BBWI with a $26 price target, citing a transition year with no growth expected in FY26 despite sequential improvements and high-profile collaborations.
Key Takeaways
- 1.Promotions were lower y/y for 1Q26 overall based on 3-wick candle pricing, though promotional intensity increased in April 2026.
- 2.Digital performance is mixed: app downloads decreased 17.2% y/y in April, while monthly active users (MAUs) grew 8.8% y/y.
- 3.Recent collaborations with Star Wars (Mandalorian) and Vera Bradley are driving elevated search interest, with Star Wars outpacing Vera Bradley.
Table of Contents
- Promotional activity case study
- Star Wars x Bath & Body Works
- Digital trends
- Google Trends
- Channel check
- Insights from HundredX
- Advertising data
- Valuation & Risks
- Disclosure Appendix
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Authors
Kate McShaneEmily GhoshMark Jordan
Securities
BBWI
Themes
Promotional DisciplineLoyalty Program Retention
Regions
North AmericaUnited StatesCanada