Third Point says Bath & Body Works can do better, offers to help -letter

NEW YORK (Reuters) – Third Point LLC on Wednesday said Bath & Body Works can perform better financially and called the appointment of a new chief executive an “encouraging first step.”

This marks the first time the hedge fund is making comments about the company after it built a sizable stake in Bath & Body Works last year and hinted at a possible boardroom challenge.

In a letter to its own investors, Third Point said “we believe BBWI can change its equity story, improve its earnings power, and earn a more premium valuation.”

The firm, run by billionaire investor Daniel Loeb, said it can offer assistance and sees a chance to “work constructively with the company to address its apparent governance issues and help it realize its significant potential.”

(Reporting by Svea Herbst-Bayliss; Editing by Josie Kao)