BARINGTON Companies Management, LLC made a new and significant addition to its portfolio in the third quarter of 2025, acquiring 125,000 shares of Bath & Body Works (NYSE: BBWI). This position is valued at $3.22 million and constitutes 2.42% of the fund’s total reportable assets under management, which stand at $133.17 million as of September 30, 2025. This move is particularly noteworthy given BARINGTON's concentrated portfolio of only 12 stocks, further emphasizing its strategy of investing in consumer discretionary names.
Despite the stock's one-year total return of -27.15%, significantly underperforming the S&P 500 by 41.22 percentage points, BARINGTON was likely attracted by Bath & Body Works' P/E ratio of 7 at the time of the filing. Additionally, the company has consistently paid an annual dividend of $0.80 per share, offering a dividend yield of 3.6%, which is more than triple the S&P 500 average of 1.1%. As of November 12, 2025, shares of Bath & Body Works were priced at $22.40.
While this is a comparatively small position at 2.4% of BARINGTON's assets, the fund is betting on the long-term value. The stock has been on a downward trajectory since February 2025, and continued to fall after the end of the quarter. It may take time for BARINGTON to see a positive return, but the generous dividend is expected to provide substantial cash returns while awaiting a stock recovery. Bath & Body Works reported TTM revenue of $7.37 billion and net income of $699.00 million. Their dividend yield is 3.57%.
Bath & Body Works reported second-quarter 2026 net sales of $1.514 billion, a decrease of 2.3% from $1.549 billion in the same period last year. However, the company exceeded guidance with earnings per diluted share of $0.58 ($0.62 adjusted) compared to $0.30 last year. Direct-channel sales saw positive growth for the first time since 2021, increasing by 3% to $275 million. The company is narrowing its full-year 2026 net sales guidance to a decline of 2.5% to 4% and raising full-year adjusted EPS guidance to between $2.60 and $2.80. CEO Daniel Heaf stated that "2026 remains an investment year" as the company focuses on its transformation strategy, including exiting the home care category and expanding partnerships with Amazon and Ulta Beauty to attract new, younger, and more affluent customers.
