Graphene’s Fragrant Exit: A Turnaround That Smells Fishy

Bath & Body Works storefront

Right then. Graphene Investments, those chaps who normally dabble in the more…solid currencies of the realm (mostly silicon and algorithms, as far as I can tell), have rather abruptly divested themselves of all 114,700 shares in Bath & Body Works. That’s roughly $2.95 million worth of scented candles and hand soaps gone up in smoke – or, more accurately, transferred to someone else to worry about. A complete liquidation, you understand. Not a trimming of the hedges, but a full-scale bonfire of the fragrances.

What Happened, or, The Tale of the Diminishing Returns

According to a filing with the U.S. Securities and Exchange Commission – a place where truths go to be carefully documented and then mostly ignored¹ – Graphene decided, in the fourth quarter, that Bath & Body Works wasn’t worth the trouble. They sold the lot. The value of the position evaporated by $2.95 million, which is a substantial sum, even in a world where people pay good money for water bottled in Fiji. It’s not just the money, of course. It’s the signal. When a fund like Graphene pulls the plug, it suggests the scent of optimism has faded.

A Portfolio Re-Aromatherapy

As of this moment, Graphene Investments is entirely devoid of BBWI stock. A clean sweep. It now represents precisely 0% of their reported assets under management. Which leaves them free to invest in, oh, I don’t know, something that doesn’t rely on persuading people they need another pumpkin spice-scented everything. Their top holdings, as of late January, look like this:

NASDAQ:GOOGL: $9.80 million (6.1% of AUM) – The All-Seeing Eye, naturally.
NASDAQ:AAPL: $6.52 million (4.1% of AUM) – Polished fruit. Reliable, if a bit… predictable.
NASDAQ:NVDA: $6.49 million (4.1% of AUM) – The wizards of graphics. Essential for conjuring convincing illusions.
NASDAQ:MSFT: $6.09 million (3.8% of AUM) – The bureaucratic backbone of the digital world.
NASDAQ:AVGO: $5.43 million (3.4% of AUM) – The component suppliers. They know where all the bits and bobs are hidden.

Meanwhile, BBWI shares were trading at a rather despondent $21.45, down nearly 40% year-over-year. The S&P 500, in comparison, was merrily skipping along. A difference of 54.05 percentage points. One begins to suspect the market has a nose for trouble.

Company Overview (Or, What They Sell, and to Whom)

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 (The Essence of Scented Capitalism)

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. (Essentially, they sell pleasant smells to people who want to feel better about their lives.)
Generates revenue primarily through direct-to-consumer sales in North America, supplemented by international franchise, licensing, and wholesale arrangements. (They’ve built a kingdom of scent, one lotion at a time.)
Targets a broad consumer base seeking personal care and home fragrance products in the United States and Canada. (Everyone needs a little pampering, even if they don’t admit it.)

What This Transaction Means for Investors (Or, Why Sometimes, Even Pleasant Smells Aren’t Enough)

Graphene’s complete exit isn’t just portfolio shuffling. It’s a fairly loud declaration that they’ve lost faith in Bath & Body Works’ turnaround prospects. This isn’t trimming the fat; it’s amputating a limb. Back in late November, BBWI stock took a 25% tumble after a rather disappointing third-quarter report. Revenue was down 1%, and earnings per share missed expectations. They slashed guidance, admitting they’d relied too heavily on promotions – a classic case of trading long-term brand value for short-term gains.

The new CEO, Daniel Heaf, rather bluntly described the company as “slow and inefficient” while announcing a $250 million cost-cutting initiative. A noble goal, perhaps, but one wonders if a bit of innovation might be more effective than simply squeezing pennies. The stock is down 40% over the past year, while the S&P 500 has gained 18%. Analysts remain cautiously optimistic, but their price targets suggest limited upside.

BBWI might appeal to contrarian investors willing to take a risk on a turnaround story. The company still generates strong free cash flow and dominates its niche. But mounting competition, eroding margins, and execution uncertainty make this a high-risk bet. Conservative investors would be wise to steer clear. Sometimes, even the most carefully crafted scent can’t mask the smell of trouble.

¹ The U.S. Securities and Exchange Commission: a vast repository of information, mostly used by lawyers and regulators to find things to argue about.

2026-01-27 20:12