Bath & Body Works Bets on Zooey Deschanel for a 40% Quarter

Holiday shopping drives roughly 40% of Bath & Body Works' business, and the retailer switched on its season on October 26 with a campaign fronted by Zooey Deschanel. The "Elf" and "New Girl" actress leads the Season of Wonder collection: hand soaps, body care and fine fragrance in returning scents such as Snowflakes & Cashmere and Moonlit Goddess, plus a new white chocolate-coconut blend called Vanilla Cocoa Flurries.

"The consumer mindset seems to shift [the holiday season] a little earlier and earlier," said Kristie Lewis, evp of merchandising at Bath & Body Works. Even so, the company held its "technical, kind of lights-up, curtains-up" opening until October 26.

Why the season is make-or-break

The stakes are unusually high this year. Bath & Body Works cleared $2.7 billion in net sales in the quarter ending January 31, a 2% decline year over year, per its Q4 2025 earnings report. That compares with $1.5 billion in Q2 2025 and $1.6 billion in Q3 2025.

CEO Daniel Heaf, who took the post in May 2025, has pushed a turnaround plan he calls the "Consumer First Formula." Its 2026 deliverables include expansion to Ulta Beauty and Amazon, the company's first major celebrity ambassador in Hilary Duff, and a drop format for limited-edition fragrances.

Consumers may also spend cautiously. The University of Michigan's consumer sentiment index fell to 46.3 in early October 2026, down 3.7% from September and 13.6% from October 2025. The National Retail Federation, however, expects November-December holiday spending to top $1 trillion, a 4.2% gain over 2025.

"This year, particularly, there are some macro pressures on everyone, not just Bath & Body Works," said Veronique Gabai-Pinsky, the company's first-ever chief brand and product officer, who joined in May. "I think the consumers are going to look at how to bring the joy that everybody needs... with a reasonable amount of pressure on their wallet."

What does the Deschanel campaign include?

The campaign plays on nostalgia for Deschanel's role in the 2003 Christmas movie "Elf." It will run on billboards in New York City and Los Angeles, on streaming platforms, and on TikTok and Instagram. Deschanel also curated a gift guide featuring a bear-shaped candle holder and the Snowflakes & Cashmere three-wick candle.

"We all remember her as the little elf, but she has that charming approach to life," said Gabai-Pinsky. "When we were creating Season of Wonder, we were always thinking: Who could personify that spirit of wonder, of wit, of desire to create magic?"

Classic scents Fresh Balsam and Winter Candy Apple return alongside a relaunch of icon scent A Thousand Wishes, a pink prosecco and peony fragrance. A flanker, A Thousand Wishes Granted, arrives as a fine fragrance mist with higher fragrance concentration, priced at $18.95. Only 1,000 bottles of a Swarovski crystal-engraved eau de parfum will be made, at $99.95 each.

Gabai-Pinsky said prices stay consistent except the crystal bottle. "What we are not going to gain on margin, we're going to get on volume," she said. "This is really the strategy we're going after."

How does it face the competition?

Mass fragrance is growing but crowded. U.S. mass fragrance sales rose 15% by dollars and 7% by units in the first half of 2026, per Circana. Yet Sol de Janeiro launched "intense" body mists in August, Gap returned to fragrance in July with a revamped line including gourmand perfume Bliss, and Target and Walmart are expanding assortments with Haeze and Megan Moroney's debut perfume, respectively.

Bath & Body Works is widening distribution to fight back. In October it placed its holiday assortment in all Ulta Beauty stores nationwide, with Pink Suede — in body, candle and fine fragrance formats — exclusive to Ulta. Amazon will carry about 35% of overall holiday offerings, with no exclusives, Lewis said.

"We offer outstanding quality at a price everybody can afford... and can feel good about gifting without having to put pressure on their finances," said Gabai-Pinsky. "I think we have a particular chance to win this year, given the macro pressure in the environment."

What happens after October 26?

Black Friday brings a buy-three-get-four bundling offer across the assortment, followed by weekend discounts. The company will also run Candle Day and Body Care Day, with 2026 dates unannounced. Gabai-Pinsky expects late shoppers and gift card redeemers to trickle into stores through early January, leaving the season's end date as unsettled as its start.