Bath & Body Works Bets on Zooey Deschanel to Save Its $2.7 Billion Quarter

Holiday shopping drives roughly 40% of Bath & Body Works' business, and the retailer switched on its season with a Zooey Deschanel campaign on October 26. The "Elf" and "New Girl" actress fronts 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, Vanilla Cocoa Flurries.

The date was deliberate. "The consumer mindset seems to shift [the holiday season] a little earlier and earlier," said Kristie Lewis, evp of merchandising. She called October 26 the company's "technical, kind of lights-up, curtains-up" opening, even though holiday displays had already crept into stores.

Why the stakes are unusually high

The quarter is not a guaranteed win. 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 role in May 2025, has pushed a turnaround plan he calls the "Consumer First Formula." Its 2026 milestones include distribution on Ulta Beauty and Amazon, the company's first major celebrity ambassador in Hilary Duff, and a new drop format for limited-edition fragrances.

Macro pressure compounds the challenge. 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 still projects November-December holiday spending above $1 trillion, up 4.2% over 2025.

"This year, particularly, there are some macro pressures on everyone, not just Bath & Body Works," said Veronique Gabai-Pinsky, chief brand and product officer. Consumers will seek wonder "with a reasonable amount of pressure on their wallet," she said.

What does the Deschanel campaign include?

The campaign leans on nostalgia for Deschanel's role in the 2003 film "Elf." It runs 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. "And 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?"

How does the pricing strategy work?

Bath & Body Works will relaunch 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 at the existing $18.95 price. A Swarovski crystal-engraved eau de parfum, limited to 1,000 bottles, costs $99.95.

"We know that we can raise the volume around those beautiful fragrances with higher quality," said Gabai-Pinsky. "And what we are not going to gain on margin, we're going to get on volume. This is really the strategy we're going after."

The volume bet has data behind it, but also rivals. Circana reports U.S. mass fragrance sales grew 15% in dollars and 7% in units in the first half of 2026. Sol de Janeiro launched "intense" body mists in August. Gap returned to fragrance in July with a revamped line including the gourmand Bliss. Target and Walmart are expanding assortments with Haeze and Megan Moroney's debut perfume, respectively.

Where will the products sell?

In October, Bath & Body Works placed its holiday assortment in all Ulta Beauty stores nationwide. Ulta holds an exclusive: Pink Suede, in body, candle and fine fragrance formats. Amazon will carry about 35% of the overall holiday offerings but no exclusives, Lewis said.

Gabai-Pinsky, who joined in May as the company's first chief brand and product officer, argued the company can withstand competition. "We offer outstanding quality at a price everybody can afford... and can feel good about gifting without having to put pressure on their finances," she said. "So I think we have a particular chance to win this year, given the macro pressure in the environment."

Black Friday brings a buy-three-get-four bundling offer across the assortment, with weekend discounts to follow. Candle Day and Body Care Day return, dates unannounced. Gabai-Pinsky expects late shoppers and gift card holders to trickle in through early January — meaning the season's end, unlike its start, has no fixed date.