SCHEDULE: FMR LLC Reports 5.9% Stake in Bath & Body Works

FMR LLC and Abigail P. Johnson disclose a passive 5.9% beneficial ownership stake in Bath & Body Works Inc. common stock.

Summary

• FMR LLC and Abigail P. Johnson have reported beneficial ownership of 12,412,497.57 shares of Bath & Body Works Inc. common stock.
• This aggregate amount represents 5.9% of the total outstanding common stock of Bath & Body Works Inc.
• FMR LLC holds sole voting power over 12,361,534.40 shares and sole dispositive power over 12,412,497.57 shares.
• Abigail P. Johnson holds sole dispositive power over 12,412,497.57 shares, with no sole or shared voting power.
• The filing is a Schedule 13G, indicating that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.
• FMR LLC is classified as a parent holding company, and Abigail P. Johnson is classified as an individual investor.
• Several FMR LLC subsidiaries, including FIAM LLC, Fidelity Diversifying Solutions LLC, Fidelity Institutional Asset Management Trust Company, Fidelity Management & Research Company LLC, Fidelity Management Trust Company, and Strategic Advisers LLC, are identified as entities beneficially owning shares.

Sentiment

Score: 5

Explanation: The filing is a standard Schedule 13G disclosure of passive beneficial ownership, indicating a routine institutional investment without intent to influence control. It provides no new information that would significantly alter the investment thesis.

Positives

• The disclosure of a significant 5.9% stake by a major institutional investor like FMR LLC may signal continued institutional confidence in Bath & Body Works Inc.

Risks

• The filing explicitly states that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Bath & Body Works Inc., which mitigates potential governance risks associated with activist investors.

Future Outlook

This filing is a disclosure of beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's future performance or outlook.

Management Comments

• Richard Bourgelas, duly authorized under Power of Attorney for FMR LLC and Abigail P. Johnson, certified that the securities were acquired and are held in the ordinary course of business and not for the purpose of or with the effect of changing or influencing the control of the issuer.

Industry Context

This is a routine disclosure of institutional ownership, common for publicly traded companies. It reflects ongoing institutional investment activity within the retail and consumer goods sector, indicating that major asset managers continue to hold significant positions in established companies like Bath & Body Works Inc.

Comparison to Industry Standards

• A 5.9% beneficial ownership stake by a prominent asset manager like FMR LLC is a substantial institutional holding, consistent with typical investment patterns for large-cap companies in the consumer retail sector.
• This level of passive ownership is common among institutional investors who seek diversified exposure to established brands without engaging in activist strategies.

Corporate Governance

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership, confirming a major asset manager's passive stake in the company.

Key Dates

Recommendation

This Schedule 13G filing is a routine disclosure of passive beneficial ownership by FMR LLC and Abigail P. Johnson. It does not contain financial performance data, strategic updates, or other information that would typically drive a 'buy' or 'sell' recommendation. The 5.9% stake indicates a significant institutional holding, which is generally a neutral to slightly positive signal of confidence, but it does not suggest any immediate catalysts for price movement. Therefore, a 'hold' recommendation is appropriate as the filing provides no new actionable information for a change in investment thesis.

Keywords

Bath & Body Works, BBWI, FMR LLC, Abigail P. Johnson, Schedule 13G, Common Stock, Institutional Ownership, Retail, Consumer Goods