This $129 Million Bath & Body Works Stake Got Liquidated as Firm Cut Outlook Amid $1.6 Billion Quarter
Key Points
Cooper Creek sold 5,006,959 shares of Bath & Body Works in the fourth quarter.
The quarter-end stake value fell by $128.98 million as a result.
The position accounted for 3.9% of the fund’s AUM in the previous quarter, marking a significant reduction as part of broader fund downsizing.
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On February 17, 2026, Cooper Creek Partners Management reported selling out of Bath & Body Works (NYSE:BBWI) shares worth an estimated $128.98 million.
What happened
According to a February 17, 2026, SEC filing, Cooper Creek Partners Management sold its entire holding of 5,006,959 shares in Bath & Body Works. The stake’s quarter-end value declined by $128.98 million.
What else to know
- Top holdings after the filing:
- NYSE:CXW: $112.68 million (5.3% of AUM)
- NYSE:GXO: $90.06 million (4.3% of AUM)
- NYSE:AAP: $75.75 million (3.6% of AUM)
- NYSE:GEO: $75.00 million (3.6% of AUM)
- NASDAQ:CZR: $74.15 million (3.5% of AUM)
- As of February 17, 2026, shares of Bath & Body Works were priced at $24.67, down 36.3% over the past year and well underperforming the S&P 500, which instead was up about 16%.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $7.35 billion |
| Net income (TTM) | $699.00 million |
| Dividend yield | 3.24% |
| Price (as of market close February 17, 2026) | $24.67 |
Company snapshot
- Bath & Body Works offers home fragrance, body care, soaps, and sanitizer products under brands such as Bath & Body Works and White Barn, distributed through specialty retail stores, e-commerce, and international partners.
- The firm operates a vertically integrated specialty retail model, generating revenue from direct product sales in company-operated stores, online channels, and through franchise and wholesale partners internationally.
- It targets consumers in the United States and Canada seeking personal care and home fragrance products, with additional reach via international franchise and license arrangements.
Bath & Body Works is a leading specialty retailer with a strong presence in the North American personal care and home fragrance market. The company leverages a multi-channel distribution strategy, including both physical retail and e-commerce, to maximize customer reach and brand engagement.
What this transaction means for investors
Bath & Body Works is at an inflection point; the company just unveiled a sweeping transformation plan even as fundamentals soften and guidance moves lower, making this rather substantial exit all the more interesting.
In its latest earnings release, the firm reported that third-quarter sales fell 1% to $1.6 billion, with earnings per share of $0.37 and adjusted EPS of $0.35. Operating income dropped to $161 million from $218 million a year ago, and management said it now expects lower full-year earnings per share of at least $2.83, or $2.87 adjusted, alongside free cash flow of roughly $650 million.
At the same time, the firm is looking to reignite product innovation and brand relevance while extracting $250 million in cost savings over two years. But macro pressure and tariff headwinds are real, and inventory remains elevated at $1.25 billion.
Against a portfolio anchored in logistics, gaming, and alternative asset managers, a mall-based specialty retailer carries a different risk. For long-term investors, the story hinges on execution. If management can stabilize traffic and convert cost savings into margin recovery, this could look like a reset. If not, the multiple may stay compressed.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends GXO Logistics. The Motley Fool has a disclosure policy.
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