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 [25][31] - Adjusted earnings per diluted share were $0.37, also at the high end of guidance [25] - Gross profit rate was 41.3%, exceeding expectations and increasing by 30 basis points year-over-year [34] - Adjusted SG&A as a percentage of net sales was 30.2%, representing a 110 basis point deleverage compared to the prior year [34] Business Line Data and Key Metrics Changes - The sanitizer business performed well, with positive consumer response to new products [28] - Men's business showed growth, particularly highlighted during Father's Day [28] - Body care category was disappointing, down low single digits, with a need for more newness [96] Market Data and Key Metrics Changes - U.S. and Canadian stores net sales totaled $1.2 billion, an increase of 5% versus the prior year [32] - Direct net sales were $267 million, a decrease of 10% compared to last year [32] - International net sales were $86 million, a decline of 3%, in line with expectations [33] Company Strategy and Development Direction - The company aims to accelerate growth by focusing on digital platform enhancements, product efficacy messaging, and expanding distribution channels [10][14] - A multi-year partnership with Disney was announced to leverage brand storytelling and consumer engagement [13][100] - The company is exploring new distribution forms, including college bookstores, to reach younger consumers [19][90] 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 [6][7] - The company is confident in its ability to absorb tariff impacts and is focused on mitigating costs through strategic sourcing and operational efficiencies [39][104] - Management expressed optimism about the potential for growth across various categories and markets, emphasizing the importance of innovation and consumer connection [12][21] Other Important Information - The company plans to increase share repurchases from $300 million to $400 million [40] - The loyalty program has approximately 39 million active members, up 5% compared to the prior year [30] 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 [46][64] - Traffic was up in Q2, with June being particularly strong, while July normalized after the Halloween launch [52] Question: Marketing changes and customer response - Marketing is shifting to focus on emotional connections rather than pricing, with positive consumer responses noted [55][57] - The company is utilizing store windows for impactful marketing [57] Question: Tariff impact and SG&A deleverage - Q3 is expected to be disproportionately impacted by tariffs, with a $40 million effect on margins [59][112] - SG&A pressures are driven by higher healthcare costs and strategic investments [91] Question: Digital platform improvements and expectations - The digital platform is not meeting standards, but improvements are expected with a new app and mobile web relaunch [76][80] - Management is focused on capturing new consumers through enhanced digital experiences [76] Question: Future wholesale opportunities and campus store contributions - Contributions from campus bookstores are included in full-year guidance, targeting younger consumers [89] - Future wholesale opportunities are being explored strategically [90] Question: Fragrance and body care performance - Body care was disappointing, but the category remains a priority for innovation [96] - The Disney partnership is expected to enhance storytelling and consumer engagement [100]

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]

Core Insights - Bath & Body Works (BBWI) reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, and consistent with the previous year's earnings of $0.37 per share [1] - The company posted revenues of $1.55 billion for the quarter ended July 2025, slightly missing the Zacks Consensus Estimate by 0.29%, but showing a year-over-year increase from $1.53 billion [2] - Bath & Body Works shares have declined approximately 18.7% year-to-date, contrasting with the S&P 500's gain of 10.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.49 on projected revenues of $1.64 billion, while the estimate for the current fiscal year is $3.46 on revenues of $7.48 billion [7] - The estimate revisions trend for Bath & Body Works was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Retail - Miscellaneous industry, to which Bath & Body Works belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Net sales reached $1.5 billion, a 1.5% increase year-over-year, hitting the high end of guidance[28, 57, 60] - Gross profit rate improved by 30 basis points to 41.3%[28, 57] - Adjusted operating income was $172 million, a 6% decrease year-over-year[28] - Adjusted earnings per diluted share were $0.37, flat compared to the previous year[28] Channel Performance - Store sales in the U S and Canada accounted for 77% of net sales, totaling $1.2 billion, a 5% increase year-over-year[53, 55] - Direct sales in the U S and Canada represented 17% of net sales, amounting to $267 million, a 10% decrease year-over-year[53, 55] - International sales contributed 6% of net sales, totaling $86 million, a 3% decrease year-over-year, while international system-wide retail sales increased by 9%[54, 55] Loyalty Program - Over 80% of U S sales in Q2 2025 were driven by loyalty members, a 2 percentage point increase year-over-year[50] - The company has approximately 39 million active loyalty members, a 5% increase year-over-year[50] Full Year 2025 Guidance - Net sales are projected to increase by 1.5% to 2.7%[63, 66] - Adjusted earnings per diluted share are expected to be between $3.35 and $3.60[29, 63, 66] - The company plans to increase share repurchases to $400 million, up from the previous guidance of $300 million[66, 69]

Core Viewpoint - Bath & Body Works reported second-quarter profits that fell short of Wall Street expectations, facing challenges from uncertain consumer discretionary spending and rising costs [1] Group 1: Financial Performance - The company's adjusted earnings per share for the quarter were 37 cents, below the analyst average expectation of 38 cents [3] - Quarterly net sales amounted to $1.55 billion, in line with market expectations [3] - General management and store operating expenses reached $483 million, a 9% increase compared to the same period last year [3] Group 2: Market Challenges - The company is experiencing significant operational pressure due to inflation and the negative impact of trade policies from the Trump administration, leading consumers to cut back on spending [2] - Although consumer spending increased in June and July, growth in the third quarter is expected to be constrained by a weak labor market and rising commodity prices [2] Group 3: Strategic Initiatives - To position its products as "affordable luxuries" and "ideal gifts," Bath & Body Works has intensified marketing and promotional efforts, including launching a Disney villain-themed product line aimed at Halloween sales [2] - The company has narrowed its full-year adjusted earnings per share guidance to a range of $3.35 to $3.60, previously $3.25 to $3.60, considering current tariff levels [3] Group 4: Supply Chain Insights - Unlike many peers, Bath & Body Works primarily utilizes local sourcing for most of its products, which helps mitigate tariff impacts [3] - However, approximately 10% of the company's supply chain still relies on China, with Canada and Mexico accounting for about 7% combined, with nearly equal shares [3]

Exhibit 99.1 Bath & Body Works Reports 2025 Second Quarter Results and Updates Fiscal Year 2025 Guidance COLUMBUS, Ohio – August 28, 2025 – Bath & Body Works, Inc. (NYSE: BBWI) today reported second quarter 2025 results. Daniel Heaf, chief executive officer of Bath & Body Works, commented, "Our team delivered a solid quarter, with revenue and adjusted earnings per share at the high end of our guidance range. Based on our strong first- half results and our confidence in our outlook, we are raising the low en ...

Core Insights - Bath & Body Works, Inc. reported solid second quarter results with revenue and adjusted earnings per share at the high end of guidance, prompting an increase in the low end of full-year adjusted earnings per share guidance [1][8] Second Quarter 2025 Results - The company achieved net sales of $1,549 million, reflecting a 1.5% increase from $1,526 million in the same quarter of the previous year [2][25] - Earnings per diluted share were reported at $0.30, down from $0.68 last year, while adjusted earnings per diluted share remained stable at $0.37 [3][5] - Operating income for the quarter was $157 million, compared to $183 million last year, and net income was $64 million, down from $152 million [3][4] Adjusted Financial Performance - Excluding certain items, adjusted operating income was $172 million, compared to $183 million last year, and adjusted net income was $78 million, down from $83 million [5][29] - The second quarter results included pre-tax costs of $15 million related to leadership transition, while the previous year included a $39 million pre-tax gain from Easton investments [4][38] 2025 Guidance - The company narrowed its full-year 2025 net sales growth guidance to 1.5% to 2.7%, compared to $7,307 million in fiscal 2024 [6] - Full-year earnings per diluted share is now expected to be between $3.28 and $3.53, with adjusted earnings per diluted share guidance raised from $3.25 to $3.60 to a new range of $3.35 to $3.60 [6][39] - The company anticipates deploying $400 million towards share repurchases, an increase from the previous expectation of $300 million, and expects to generate free cash flow of $750 million to $850 million for the full year [6][41] Third Quarter 2025 Outlook - For the third quarter, net sales are expected to increase by 1% to 3%, with earnings per diluted share projected between $0.37 and $0.45 [7][8]

Core Viewpoint - Analysts project that Bath & Body Works (BBWI) will report quarterly earnings of $0.37 per share, with revenues expected to reach $1.55 billion, reflecting a 1.8% increase year over year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.8%, indicating a collective reassessment by covering analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Key Metrics Forecast - Analysts predict 'Geographic Net Sales- Stores - U.S. and Canada' will reach $1.17 billion, a 2.8% increase from the prior-year quarter [5]. - The estimate for 'Geographic Net Sales- International' is projected at $84.84 million, suggesting a 4.7% decrease year over year [5]. - 'Geographic Net Sales- Direct - U.S. and Canada' is expected to be $295.55 million, indicating a 0.5% decline from the previous year [6]. Store Data and Size - The estimated total number of 'Company-operated U.S. Stores' is 1,797, compared to 1,761 in the same quarter last year [8]. - Analysts expect 'Total Company-Operated Stores - Total Bath & Body Works - Canada - Stores' to be 113, up from 111 year over year [7]. - The total selling square feet for 'Company-operated U.S. Store Data' is projected to reach 5.12 million, an increase from 4.99 million year over year [7]. Market Performance - Over the past month, Bath & Body Works shares have recorded a return of -1.5%, while the Zacks S&P 500 composite has increased by 2.7% [8]. - Based on its Zacks Rank 3 (Hold), BBWI is expected to perform in line with the overall market in the upcoming period [8].

Company Announcement - Bath & Body Works, Inc. will participate in a fireside chat at the Goldman Sachs 32nd Annual Global Retailing conference on September 3, 2025, at 8:55 a.m. ET, featuring CEO Daniel Heaf and CFO Eva Boratto [1] - A live audio webcast of the event will be available on the company's website and will be archived for 90 days post-event [2] Company Overview - Bath & Body Works is a global leader in personal care and home fragrance, known for its popular products such as fine fragrance mist, body lotion, body cream, 3-wick candles, home fragrance diffusers, and liquid hand soap [3] - The company operates 1,900 Company-operated locations in the U.S. and Canada, along with 524 international franchised locations and an online storefront [3]

Core Viewpoint - Bath & Body Works (BBWI) is anticipated to report flat earnings of $0.37 per share for the quarter ended July 2025, with revenues expected to reach $1.55 billion, reflecting a 1.8% increase from the previous year [3][12]. Earnings Expectations - The upcoming earnings report is scheduled for August 28, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2][3]. - The consensus EPS estimate has been revised 0.83% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +3.26% for Bath & Body Works, suggesting a likelihood of beating the consensus EPS estimate [12]. - The stock currently holds a Zacks Rank of 3, which indicates a neutral outlook [12]. Historical Performance - Bath & Body Works has a history of exceeding consensus EPS estimates, having beaten expectations in the last four quarters, including a +4.26% surprise in the most recent quarter [13][14]. Conclusion - Bath & Body Works is positioned as a strong candidate for an earnings beat, but investors should consider additional factors influencing stock performance beyond earnings results [17].