Bath and Body Works Scored an American Goal Against Tariffs! Is this the Sweetest Victory Ever?

A Goal for American Manufacturing?

Hola everyone! Leo here trading my cleats for a keyboard (just for today don't worry the pitch still calls!). I've been reading about this company Bath & Body Works and how they're playing the tariff game like I play football – strategically! Apparently 80% of their products are made right here in the United States. It's like scoring a goal at home in front of your fans! As they say 'The ball is round the game is long and in the end Bath & Body Works wins... against tariffs!' Well maybe I added the last bit.

Smelling Like Victory

So according to some very smart people at BofA Securities this 'domestic exposure' gives Bath & Body Works a 'key advantage.' They don't have to worry about those pesky import tariffs meaning they can keep their prices steady. It’s like having a free kick while everyone else is stuck in the wall! Lorraine Hutchinson says they can keep prices as they are and not lose profitability. Smart move! I always say 'You have to fight to reach your dream. You have to sacrifice and work hard for it.' And by 'it,' I mean smelling amazing without breaking the bank.

Beauty Park is Their Stadium

Their main U.S. factory is called Beauty Park located in Ohio. Sounds magical doesn't it? Opened in 2012 it was designed to help them react quickly to what customers want. BMO Capital Markets' Simeon Siegel says it’s about finding what customers buy to minimize discounts. It's all about speed and precision! Like a perfectly timed pass from me to… well whoever's open! I like this strategy; it's all about getting the ball to the back of the net—or the soap to the shelves—as efficiently as possible.

From Months to Weeks: A Supply Chain Masterclass

Here's where it gets really interesting. Their foaming hand soap used to take THREE MONTHS to make! Parts coming from Canada and China the filling in Virginia and then off to Ohio. Now? It all happens at Beauty Park in just THREE WEEKS! That’s faster than I can dribble past five defenders (okay maybe not quite but close!). It's like having a super charged supply chain ready to deliver goals or in this case soap at lightning speed.

Bouncing Back Like a Champion

They had a bit of a dip in sales after everyone stocked up on hand sanitizers during the pandemic. Who knew staying clean could hurt profits later? But analysts are saying that things are looking up! Sales are projected to grow again in 2025. This is their comeback story their 'never give up' moment! As I always say 'You have to believe in yourself.' And I guess Bath & Body Works believes in… well soap and candles!

Smelling Success Ahead?

Siegel points out that it's not just about following trends. People bought too many candles during COVID and now they're finally emerging on the other side. It should start trading better a little bit more consistently. So keep an eye on Bath & Body Works. They might just be the surprise winners in this tariff tango. And who knows maybe they’ll even name a candle after me… 'The Messi Mist'? I’d buy that!