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Are you part of the candle cult?

December 29, 2022

A handful of companies in the LikeFolio universe have a cult-like following.

We identify these when users are so loyal they’re practically addicted to products and services a company, and more importantly, when this translates to a consistently high sentiment score.

(Thinks 75% positive or higher.)

You can see some of these classics below, many of which we’ve featured previously like Celsius energy drinks, Chewy’s eCommerce platform, and On running shoes.

But a new one caught our eye this holiday season: Bath and Body Works (BBWI).

The company famous for making sure everything smells good (thanks to its 3-wick candles, body lotions, and wall flowers) is on a roll.

Last quarter Bath and Body Works posted Q3 results that shocked investors, handily beating Wall Street estimates for earnings and revenue and sending shares +20% higher and capping off its best trading day since 2020.

Sales were driven, not shockingly, by loyal customers.

The company noted, “Our nationwide launch of our loyalty program has been a great success. We achieved industry-leading speed in customer adoption in our program with over 21 million members enrolled to-date. Loyalty members now make up more than a third of our overall customer base and loyalty sales represent about two-thirds of our total U.S. sales since launch.”

And according to LikeFolio data, these loyal members made it rain in the month of December.

BBWI consumer demand is up +21% YoY and up more than 100% QoQ during a strong holiday showing, especially among in-store shoppers.

But digital demand remains strong, too. Bath and Body Works web page views increased by +3% YoY this quarter.

In fact, Bath and Body Works mentions triggered our internal spike detector the day after Christmas as customers scrambled to scoop up their favorite products at a discounted price in the company’s semi-annual sale.

BBWI will report on its holiday turnout after it caps off its 4th quarter (ending Jan. 28) – but current metrics are trending for another solid performance.

If the company can continue its solid streak of high customer happiness, it may be a nice long-term bet for investors.

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LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.

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