Workforce and Inclusion - As of February 3, 2024, Bath & Body Works employed approximately 57,200 associates, with 95% working in stores[38]. - The workforce consists of 8,981 full-time and 48,176 part-time associates, totaling 57,157[39]. - In 2023, the company achieved pay equity for women at $1.00 and for people of color at $0.99 relative to men's pay for similar work[40]. - The company awarded over $400,000 in grants to over 250 associates through the Associates for Associates fund in 2023[42]. - Bath & Body Works plans to introduce DailyPay for store associates during fiscal 2024, following its implementation for distribution and fulfillment center associates[42]. - The company emphasizes a pay-for-performance philosophy, linking compensation changes to overall company performance and individual contributions[41]. - Bath & Body Works is committed to fostering an inclusive work environment, with eight associate inclusion resource groups supported by senior leaders[40]. - The company is focused on attracting and retaining qualified associates, which is critical for maintaining customer satisfaction and operational success[50]. Financial Performance - Net sales for fiscal 2023 were $7,429 million, a decrease of 1.7% from $7,560 million in fiscal 2022[184]. - Gross profit for fiscal 2023 was $3,236 million, slightly down from $3,255 million in fiscal 2022, resulting in a gross margin of approximately 43.6%[184]. - Operating income decreased to $1,285 million in fiscal 2023 from $1,376 million in fiscal 2022, reflecting a decline of 6.6%[184]. - Net income from continuing operations for fiscal 2023 was $878 million, an increase of 10.6% compared to $794 million in fiscal 2022[184]. - Total net income per diluted share for fiscal 2023 was $3.84, up from $3.43 in fiscal 2022, representing a growth of 12.0%[184]. - Total comprehensive income for fiscal 2023 was $875 million, compared to $798 million in fiscal 2022, indicating an increase of 9.7%[187]. Economic and Market Risks - Seasonal fluctuations significantly impact net sales and operating income, particularly during the fourth quarter holiday season[49]. - The company faces risks from general economic conditions, inflation, and consumer spending patterns, which have negatively impacted sales in recent years[48]. - More than half of the company's stores are located in off-mall retail areas, making sales dependent on consumer traffic, which can be adversely affected by economic downturns and competition from online retailers[52]. - Future growth is heavily reliant on the ability to open new stores and remodel existing ones, with risks associated with site selection and hiring qualified personnel[52]. - International expansion plans face risks including compliance with local laws, cultural differences, and geopolitical instability, which could disrupt operations and increase costs[54]. - The retail industry is highly competitive, with the company facing challenges from both traditional and online retailers, which could impact pricing power and market share[57]. - The company relies on physical retail locations, making it vulnerable to declines in foot traffic, which could significantly affect sales performance[57]. Supply Chain and Operational Risks - The direct channel business is subject to risks such as logistics costs and potential disruptions from third-party service providers, which could adversely affect sales and customer satisfaction[55]. - The company faces risks related to sourcing and distributing merchandise globally, including customs regulations and potential tariffs[58]. - The Uyghur Forced Labor Prevention Act may impact the ability to import goods from China, potentially leading to inventory shortages and increased compliance costs[59]. - The company relies on third-party transportation providers for product shipments, which exposes it to risks such as rising labor costs and fuel prices[60]. - The geographic concentration of manufacturing and distribution facilities makes the company susceptible to local disruptions, potentially affecting inventory and costs[60]. Financial Management and Capital Structure - The company has historically included quarterly cash dividends and share repurchase programs in its capital allocation strategy, but future payments are not guaranteed[72]. - Substantial indebtedness and covenants in the asset-backed revolving credit facility may restrict the company's ability to pay dividends or repurchase shares[75]. - A deterioration in capital structure or earnings quality could lead to a downgrade in credit ratings, affecting access to capital and increasing interest expenses[74]. - The company reported interest expense of $345 million for fiscal 2023, a slight decrease from $348 million in fiscal 2022[184]. - The company extinguished $485 million principal amount of senior notes during 2023, resulting in pre-tax gains of $34 million[265]. Taxation and Compliance - The company is subject to various legal and regulatory requirements, including those from the Sarbanes-Oxley Act and the U.S. Foreign Corrupt Practices Act, which could impact its operations and financial condition[78]. - Changes in taxation and trade regulations could adversely affect the company's results of operations and financial condition due to increased costs and compliance complexities[81]. - The effective income tax rate for 2023 was 13.9%, a significant decrease from 24.0% in 2022[255]. - The company is currently under examination by the IRS for its 2020 to 2023 consolidated U.S. federal income tax returns[257]. Cybersecurity and IT Risks - Cybersecurity incidents could significantly damage the company's reputation and financial condition, with potential liabilities from breaches or failures of security[70]. - The company maintains cybersecurity insurance, but it may not be sufficient to cover all claims related to data security incidents[70]. - The complexity of information systems and the transition of IT services heighten operational risks, including potential cybersecurity threats[70]. - The IT Transformation Project aims to upgrade digital and information technology systems, enhancing data analytics and customer experience, but poses risks of service interruption and increased expenses[68]. Inventory and Cash Management - Total current assets decreased from $2,266 million to $2,115 million, a decline of approximately 6.7%[191]. - Cash and cash equivalents decreased from $1,232 million to $1,084 million, a reduction of about 12.1%[191]. - Total liabilities decreased from $5,494 million to $5,463 million, a decline of approximately 0.6%[191]. - Long-term debt decreased from $4,862 million to $4,388 million, a reduction of about 9.7%[191]. - Inventory shrinkage rates have increased in recent years, which could adversely affect financial performance[67].

E_Y_E Synopsis Bath & Body Works, Inc. (NYSE:BBWI) is a leading name in home fragrance and personal care, with 1,850 locations in North America and 480 franchises internationally. Despite a decline in sales in 2022 and 2023 due to inflationary pressure, BBWI's products are considered an affordable luxury, and the firm seems to remain resilient as compared to its peers. In addition, their loyalty program has been proven effective, with a strong customer base that accounts for nearly 80% of 2023 sales and is ...

COLUMBUS, Ohio, March 05, 2024 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE:BBWI) announced today that Eva Boratto, chief financial officer, will participate in a fireside chat at the Bank of America Consumer & Retail Conference on Tuesday, March 12, 2024, at 8:00 a.m. EDT. A live audio webcast will be available at the time of the event and may be accessed through the Events and Presentations section of the company's website at https://investors.bbwinc.com/financial-reporting/events-presentations. The ...

COLUMBUS, Ohio, March 05, 2024 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) announced today that Eva Boratto, chief financial officer, will participate in a fireside chat at the Bank of America Consumer & Retail Conference on Tuesday, March 12, 2024, at 8:00 a.m. EDT. A live audio webcast will be available at the time of the event and may be accessed through the Events and Presentations section of the company’s website at https://investors.bbwinc.com/financial-reporting/events-presentations. The ...

Financial Data and Key Metrics Changes - In Q4 2023, net sales reached $2.9 billion, growing 0.8% compared to the previous year, exceeding expectations [6][28] - Adjusted earnings per diluted share were $2.06, up nearly 11% year-over-year, driven by strong merchandise margin improvements of 290 basis points [6][29] - Average unit retails (AUR) increased by 2%, the highest growth seen throughout the year, attributed to a well-planned pricing strategy [6][28] Business Line Data and Key Metrics Changes - The men's shop contributed significantly to growth, with two-thirds of category growth coming from new products and a successful influencer marketing campaign [8][19] - Body care sales grew low-single-digits, driven by men's products and strong performance during promotional events [20] - Home fragrance sales declined low-single-digits, but the company achieved record sales during the Candle Day event [20][29] Market Data and Key Metrics Changes - U.S. and Canadian store net sales totaled $2.2 billion, a 4% increase year-over-year, while direct net sales declined by 8% [28] - International net sales were $94 million, down 1% due to challenges in the Middle East, with overall international retail sales declining mid-single digits [29] - The company reported a gross profit rate of 45.9%, an increase of 260 basis points compared to the prior year [29] Company Strategy and Development Direction - The company focuses on five key growth drivers: brand elevation through innovation, extending reach via new categories and international growth, customer engagement, seamless omnichannel experience, and operational excellence [9][16] - Plans for 2024 include increasing marketing investments, expanding product adjacencies, and enhancing the loyalty program to drive customer acquisition [33][34] - The company aims to achieve $10 billion in net sales and a 20% operating income margin in the long term [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2024, anticipating macroeconomic pressures but expecting net sales to grow in the second half of the year [16][38] - The company is focused on reducing leverage and returning cash to shareholders, with a new share repurchase authorization of up to $500 million [17][25] - Management acknowledged the normalization of the candle category and the need to adapt to changing consumer spending behaviors [16][68] Other Important Information - The company generated $954 million in operating cash flow in fiscal 2023, with $656 million in free cash flow available for shareholder returns and debt reduction [24][25] - The company plans to invest between $300 million and $325 million in capital projects during 2024 [26] - The loyalty program has seen strong enrollment, with nearly 80% of U.S. revenue flowing through loyalty, and 36% of new loyalty members were new to the brand [15][16] Q&A Session Summary Question: Drivers of the fourth quarter AUR increase - Management highlighted a balanced approach to pricing and promotions, with selective price increases contributing to the AUR growth [41][43] Question: Level of innovation expected in fiscal year 2024 - Management indicated that new product adjacencies, particularly in men's products and hair care, will drive innovation and customer acquisition [45][49] Question: Merchandise margin improvement drivers - Management expects continued merchandise margin expansion due to deflation and cost reduction initiatives, while also investing in product reformulation [51][52] Question: Size and growth potential of the men's category - The men's category currently represents a single-digit percentage of sales, with significant growth potential in a $12 billion market [56][57] Question: First quarter sales guidance and traffic trends - Management indicated that cautious consumer behavior is expected to persist, impacting sales trends into the first quarter [60][62] Question: Pricing plans and promotional strategies - Management plans to implement modest pricing increases while maintaining a competitive edge through agile promotional strategies [71][73]

Financial Performance - Revenue for the quarter ended January 2024 was $2.91 billion, up 0.8% year-over-year [1] - EPS for the quarter was $2.06, compared to $1.86 in the year-ago quarter [1] - Revenue surpassed the Zacks Consensus Estimate of $2.83 billion by 2.79% [1] - EPS exceeded the consensus estimate of $1.85 by 11.35% [1] Store Metrics - Total company-operated stores in the US were 1,739, slightly above the three-analyst average estimate of 1,736 [2] - Total company-operated stores in Canada were 111, matching the three-analyst average estimate [2] - Total partner-operated international stores were 485, slightly below the two-analyst average estimate of 489 [2] - Total partner-operated international travel retail stores were 31, slightly above the two-analyst average estimate of 30 [2] Geographic Sales - US and Canada store net sales were $2.16 billion, surpassing the four-analyst average estimate of $2.05 billion [2] - International store net sales were $94 million, exceeding the four-analyst average estimate of $90.30 million [2] - US and Canada direct net sales were $656 million, slightly below the four-analyst average estimate of $663.04 million [2] Stock Performance - Shares of Bath & Body Works returned +13.3% over the past month, outperforming the Zacks S&P 500 composite's +3.9% change [3] - The stock currently has a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

MUNCY, PENNSYLVANIA, UNITED STATES - 2022/11/21: A Bath and Body Works store stands at the Lycoming ... [+] Crossing Shopping Center in Muncy. The Christmas holiday shopping season in the United States traditionally begins after Thanksgiving. (Photo by Paul Weaver/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesBath & Body Works stock (NYSE: BBWI), the largest specialty home fragrance & body care product retailer in the U.S., formerly known as L Brands, is scheduled to repor ...

Exhibit 99.1 Bath & Body Works Reports Fourth Quarter and Full-Year 2023 Results and Provides 2024 Outlook Fourth Quarter and Full-Year Net Sales and Earnings Per Share Exceed Guidance Board of Directors Authorizes New Share Repurchase Program COLUMBUS, Ohio – Feb. 29, 2024 - Bath & Body Works, Inc. (NYSE: BBWI) today reported fourth quarter and full-year 2023 results. Gina Boswell, CEO of Bath & Body Works, commented, "The team delivered fourth quarter net sales and earnings that exceeded the high end of o ...

COLUMBUS, Ohio, Feb. 15, 2024 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE: BBWI) announced today that it will report its fourth quarter and fiscal 2023 financial results before market open on Thursday, February 29, 2024. In conjunction with this release, the company will host a conference call that morning at 9:00 a.m. EST, during which Gina Boswell, chief executive officer, Eva Boratto, chief financial officer, and Julie Rosen, president, retail, will provide a business update and discuss the company ...

COLUMBUS, Ohio, Feb. 09, 2024 (GLOBE NEWSWIRE) -- Bath & Body Works, Inc. (NYSE:BBWI) announced today the declaration of its regular quarterly dividend of $0.20 per share payable on Mar. 8, 2024, to shareholders of record at the close of business on Feb. 23, 2024. ABOUT BATH & BODY WORKS: Home of America's Favorite Fragrances®, Bath & Body Works is a global leader in personal care and home fragrance, including top-selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home ...