Graphene Investments Liquidates Entire $2.95 Million Bath & Body Works Stake Amid Turnaround Challenges
Key Points
Sold 114,700 BBWI shares; estimated trade value $2.95 million (based on quarterly average price).
Quarter-end value dropped by $2.95 million, reflecting both the share sale and price movements.
Transaction accounted for 1.85% of 13F reportable assets under management.
Post-sale, the fund holds zero BBWI shares valued at $0.
The BBWI stake previously represented 1.9% of fund AUM as of the prior quarter.
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Graphene Investments has completely sold out of Bath & Body Works (NYSE:BBWI), liquidating 114,700 shares for an estimated $2.95 million based on quarterly average pricing.
What happened
According to a filing with the U.S. Securities and Exchange Commission dated January 27, 2026, Graphene Investments SAS sold its entire BBWI stake in the fourth quarter. The fund reduced its holdings by 114,700 shares, with the transaction value estimated at $2.95 million based on the period’s average share price. The position’s end-of-quarter value decreased by $2.95 million, reflecting both the sale and price changes.
What else to know
- Graphene Investments SAS is no longer invested in BBWI, with the position now representing 0% of reported assets under management
- Top five holdings after the filing:
- NASDAQ:GOOGL: $9.80 million (6.1% of AUM)
- NASDAQ:AAPL: $6.52 million (4.1% of AUM)
- NASDAQ:NVDA: $6.49 million (4.1% of AUM)
- NASDAQ:MSFT: $6.09 million (3.8% of AUM)
- NASDAQ:AVGO: $5.43 million (3.4% of AUM)
- As of January 26, 2026, shares were priced at $21.45, down 39.5% over the past year, underperforming the S&P 500 by 54.05 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $7.35 billion |
| Net Income (TTM) | $699.00 million |
| Dividend Yield | 3.74% |
| Price (as of market close January 26, 2026) | $21.45 |
Company Snapshot
- Offers home fragrance, body care, soaps, and sanitizer products under brands such as Bath & Body Works and White Barn, distributed through company-operated and partner-operated retail stores as well as e-commerce channels.
- Generates revenue primarily through direct-to-consumer sales in North America, supplemented by international franchise, licensing, and wholesale arrangements.
- Targets a broad consumer base seeking personal care and home fragrance products in the United States and Canada.
What this transaction means for investors
Graphene Investments' complete exit from Bath & Body Works signals decisive loss of confidence in the struggling fragrance retailer's turnaround prospects. Complete liquidations like this typically indicate fundamental thesis changes, not routine portfolio rebalancing. In late November, Bath & Body Works stock plunged 25% in a single day after the company released disappointing third-quarter results.
Third-quarter revenue of $1.59 billion was down 1% year over year, and adjusted earnings per share of $0.35 missed expectations. The company slashed full-year guidance, projecting high single-digit sales declines in Q4 and acknowledging it had relied on excessive promotions that damaged brand perception. New CEO Daniel Heaf criticized the company as "slow and inefficient" while unveiling a $250 million cost-cutting initiative to fund product innovation.
The stock has collapsed by 40% over the past year versus the S&P 500's 18% gain. Analysts maintain a hold consensus with price targets implying limited upside, reflecting skepticism about near-term recovery.
Bath & Body Works stock could be interesting for contrarian value investors comfortable with turnaround risk and multiyear recovery timelines. The company still generates strong free cash flow and dominates its category. But mounting competitive pressure, margin erosion, and execution uncertainty make this a high-risk bet that conservative investors should definitely avoid.
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Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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