Bath & Body Works stock rises as Third Point raises activist stake
Bath & Body Works Inc. (NYSE:BBWI) stock rose after hours on Thursday as the Dan Loeb-led Third Point disclosed an increased stake in the company.
The hedge fund now holds about a 6% stake in the company and, according to the filing, may wield the stake to demand changes at the company.
“The Reporting Persons believe that certain decisions by the Issuer's Board of Directors raise questions about the adequacy of current governance practices,” the 13-D filing states. “The Reporting Persons believe that the Issuer, through the compensation committee of the Board, has made errors in structuring its executive compensation such that excessive awards have been made that are untethered to important performance metrics.”
Other issues raised by Loeb include concerns regarding communication with shareholders, board composition, and overall financial discipline. If he finds the moves to remedy these concerns insufficient, Loeb has indicated he may “seek changes in Board composition and/or take other measures at or before the Company’s next annual meeting.”
Shares of the Ohio-based retailer rose 4.37% in after hours trading on Thursday.
Dig into the company’s profitability metrics.