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]

Core Insights - Bath & Body Works has launched its Summerween collection, featuring over 70 products, with early access for loyalty members starting June 30 and full availability in stores on July 7 [1][9] - The new fragrance, I Scream Float, has quickly sold out on TikTok Shop, indicating strong consumer interest and demand [4][8] - The collection includes returning favorites like Vampire Blood and Immortal, alongside new offerings, showcasing the brand's strategy to blend nostalgia with innovation [3][5][6] Product Details - The Summerween collection features a variety of fragrances, including I Scream Float, Vampire Blood, Immortal, Ghoul Friend, Wicked Vanilla Woods, and Candy Apple Cauldron, each with unique scent profiles [8] - I Scream Float is described as a gourmand fragrance with notes of fizzing cola, vanilla, and sugar, while Vampire Blood combines red berries, night-blooming jasmine, and petrifying plum [4][8] - Immortal, Bath & Body Works' first men's Halloween fragrance, features notes of black plum, sueded saffron, and aged oak, and is packaged in a coffin-shaped box for a thematic appeal [5][8] Marketing Strategy - The company emphasizes the growing trend of Halloween-themed products, aiming to meet customer preferences with high-quality, trend-forward offerings [6] - Bath & Body Works rewards its loyalty program members, which number over 38 million, with early access to new collections, enhancing customer engagement and loyalty [8] - The collection also includes various accessories and decor items, such as candle holders and soap dispensers, to complement the fragrance offerings and enhance the overall shopping experience [6]