Bath & Body Works admits its stores are “overwhelming.” Changes are coming.

Some stores aspire to be basic. Bath and Body Works is one of them.

Bath & Body Works (BBWI) said Thursday it is streamlining its approach after its sales fell 1% year-over-year and adjusted income fell 33% last quarter. The retailer known for its soaps, candles and skincare products has neglected its core inventory while trying to attract younger consumers, and has become too reliant on big-name collaborations and promotions, said Daniel Heff, CEO of the retailer known for its soaps, candles and skincare products.

To repackage, the company will focus on traditional offerings, prioritize “clean” ingredients, and simplify the way its inventory appears in physical and digital stores, Heff said on a conference call. The company — and its president — aim to revive the stock that collapsed in 2025.

“The customer is telling us that our in-store display is too overwhelming and confusing,” Hef said, according to the transcript made available by AlphaSense. “The outcome we want is to be able to attract new consumers into our stores and on our digital platforms [should be able to] They find what they want easily and fall in love.”

Bath & Body Works is stepping back from hair care and men’s grooming products to focus on the home fragrances and body care products people have come to expect, Heff said. He said the brand will continue to improve its inventory — and rely on “clean” ingredients — while running fewer, more targeted marketing campaigns. Bath & Body Works is also improving its website and app, and is preparing to launch on Amazon (AMZN).

Bath & Body Works has been lagging behind others in the sector, Heff said, acknowledging that consumer caution has made the environment more competitive. The retailer expects fourth-quarter sales to be lower than last year and lowered its forecast for the full fiscal year. It is looking to cut costs while giving the so-called consumer-first formula time to work.

“The entire company is working with the utmost urgency,” Hef said. “But this will take time. [Next year] “It will be a year of investment behind our brand to strengthen our fundamentals and position our business for long-term sustainable growth.”

The company’s shares fell by about 25% after it announced its third-quarter results. Bath & Body Works reported earnings of $0.37 per diluted share on sales of $1.59 billion, compared to earnings of $0.49 per diluted share on sales of $1.61 billion a year earlier.

Investors continue to dump stocks. Shares recently fell about 3%, putting them down more than 60% so far this year.

This article has been updated since it was first published. An earlier version of the headline misidentified the company covered in the story.