PresentationKatharine McShaneMD & Retail Analyst Okay. Good morning, everybody. I just have to read some quick disclosures. I think they're also going to be on the screen. But just so you are aware, we -- I can pull them up. We are required to make certain disclosures in public appearances about Goldman Sachs relationships with companies that we discuss. The disclosures relate to investment banking, compensation received or 1% or more ownership. We're prepared to read aloud disclosures for any issuer upon r ...

Bath & Body Works (BBWI) FY 2025 Conference September 03, 2025 08:55 AM ET Company ParticipantsKate McShane - Managing DirectorDaniel Heaf - CEO & Board MemberEva Boratto - CFOKate McShaneGood morning, everybody. I just have to read some quick disclosures. I think they're also going to be on the screen, but just so you are aware, we are required to make certain disclosures in public appearances about Goldman Sachs relationships with companies that we discuss. The disclosures relate to investment banking, co ...

Bath & Body Works (BBWI) FY 2025 Conference September 03, 2025 08:55 AM ET Speaker0Good morning, everybody. I just have to read some quick disclosures. I think they're also going to be on the screen, but just so you are aware, we are required to make certain disclosures in public appearances about Goldman Sachs relationships with companies that we discuss. The disclosures relate to investment banking, compensation received, or 1% or more ownership. We're prepared to read aloud disclosures for any issuer upo ...

Bath & Body Works (BBWI) FY 2025 Conference September 03, 2025 08:55 AM ET Speaker0Good morning, everybody. I just have to read some quick disclosures. I think they're also going to be on the screen, but just so you are aware, we are required to make certain disclosures in public appearances about Goldman Sachs relationships with companies that we discuss. The disclosures relate to investment banking, compensation received, or 1% or more ownership. We're prepared to read aloud disclosures for any issuer upo ...

Core Insights - Bath & Body Works (BBWI) reported second-quarter fiscal 2025 results with net sales growth of 1.5% year over year to $1,549 million, which fell short of the Zacks consensus estimate of $1,554 million, while adjusted earnings per share remained flat at 37 cents [1][3][8] - The company experienced positive store traffic, with U.S. and Canada store sales increasing by 4.9% to $1.20 billion, exceeding the Zacks consensus estimate of $1.17 billion, while direct sales declined by 10.1% to $267 million, missing the estimate [4][8] - BBWI's gross margin improved to 41.3%, despite a $16 million impact from tariffs, driven by better management of buying and occupancy expenses [5][8] Financial Performance - Gross profit rose by 2.2% year over year to $640 million, while operating income decreased by 14.2% to $157 million, leading to a decline in operating margin to 10.1% [6][8] - Net income fell by 57.9% to $64 million compared to $152 million in the previous year [6] - The company ended the quarter with cash and cash equivalents of $364 million and long-term debt of $3.89 billion [9] Store Operations - BBWI operated 1,904 stores at the end of the quarter, with 1,791 in the U.S. and 113 in Canada, having opened 20 new stores and closed 16 [7] - Internationally, the company ended with 537 stores, with plans for at least 30 net new store openings in fiscal 2025 [7] Future Outlook - For the third quarter of fiscal 2025, BBWI expects net sales growth of 1-3% and anticipates a gross margin of 42.2, factoring in a $40 million tariff impact [11][12] - The company has narrowed its fiscal 2025 net sales growth outlook to 1.5-2.7% and raised its earnings per share guidance to $3.35-$3.60 [16][17] - Capital expenditure is planned at $250-$270 million, focusing on real estate and technology, with expected free cash flow of $750-$850 million [18] Shareholder Returns - BBWI increased its share repurchase plan from $300 million to $400 million and returned $42 million to shareholders through dividends [10][19]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _________________________________ Delaware 31-1029810 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) Three Limited Parkway OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8344 _________________________________ BATH & BODY WORKS, INC. QUARTERLY REPORT PURSUA ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

For the quarter ended July 2025, Bath & Body Works (BBWI) reported revenue of $1.55 billion, up 1.5% over the same period last year. EPS came in at $0.37, compared to $0.37 in the year-ago quarter.The reported revenue represents a surprise of -0.29% over the Zacks Consensus Estimate of $1.55 billion. With the consensus EPS estimate being $0.37, the company has not delivered EPS surprise.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare t ...

Bath & Body Works (BBWI) Q2 2026 Earnings Call August 28, 2025 08:30 AM ET Company ParticipantsLuke Long - VP - IRDaniel Heaf - CEO & Board MemberEva Boratto - CFOLorraine Hutchinson - Managing DirectorKatherine Delahunt - Equity Research Senior AssociateAlex Straton - MD - Equity ResearchEmily Ghosh - Equity Research AssociateKelly Crago - Vice PresidentJonna Kim - DirectorSydney Wagner - Equity Research Senior Associate - Beauty & Personal CareDana Tesley - CEO & CROConference Call ParticipantsMatt Boss - ...

Financial Data and Key Metrics Changes - The company reported net sales of $1.5 billion, an increase of 1.5% compared to the prior year, achieving results at the high end of guidance [24][29] - Adjusted earnings per diluted share were $0.37, also at the high end of guidance [24] - Gross profit rate improved to 41.3%, up 30 basis points year-over-year, despite a $16 million headwind from tariffs [32] - Adjusted SG&A as a percentage of net sales was 30.2%, representing a 110 basis point deleverage compared to the prior year [32] Business Line Data and Key Metrics Changes - The sanitizer business performed well, with positive consumer response to new products [26] - Men's business showed growth, particularly highlighted during Father's Day [26] - Body Care category was disappointing, down low single digits, with stronger results during the semiannual sale [94] Market Data and Key Metrics Changes - U.S. and Canadian stores net sales totaled $1.2 billion, a 5% increase versus the prior year [30] - Direct net sales were $267 million, a decrease of 10% compared to last year, but down only 3% when adjusted for Buy Online Pickup in Store [30] - International net sales were $86 million, a decline of 3%, attributed to timing of shipments [31] Company Strategy and Development Direction - The company aims to position itself as a global leader in home fragrance and personal care, focusing on product innovation and alternative distribution [8][11] - A multi-year partnership with Disney was announced, building on previous successful collaborations [12] - The company is enhancing its digital platform to improve consumer experience and drive sales [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are cautious and value-seeking, prioritizing purchases that support personal well-being [5] - The company is confident in its ability to absorb tariff impacts and is focused on mitigating costs through strategic sourcing and operational efficiencies [36][56] - Management expressed optimism about the potential for growth, particularly in digital channels and new consumer engagement strategies [60][74] Other Important Information - The company plans to increase share repurchases from $300 million to $400 million [39] - Capital expenditures for the year are expected to be between $250 million and $270 million, focusing on real estate and technology [39] Q&A Session Summary Question: Assessment of opportunities ahead and traffic trends - Management sees more opportunities for growth than initially expected, with a focus on digital platforms and product efficacy [42] - Traffic was up in Q2, with June being particularly strong, while July normalized after the Halloween launch [48] Question: Marketing changes and customer response - Marketing efforts are shifting to focus on emotional connections rather than pricing, with positive consumer responses noted [51][52] Question: Tariff impact between Q3 and Q4 - Q3 is expected to be disproportionately impacted by tariffs, with a $40 million effect on margins [56] Question: Contribution from campus stores and future wholesale opportunities - The campus bookstore initiative is seen as a strategic move to reach younger consumers, with further distribution opportunities being explored [88] Question: Drivers of SG&A deleverage - SG&A pressure is attributed to higher healthcare costs and strategic investments, with ongoing efforts to offset these impacts [90] Question: Digital business outlook and improvements - The digital platform is not meeting expectations, but improvements are underway, including a new app and enhanced online experience [74][75]