Core Insights - Bath & Body Works Inc. experienced a significant stock decline of nearly 25% after reporting disappointing third-quarter earnings and reducing its full-year outlook due to macro consumer pressures [1][3] - The company reported a net income of $77 million, or 37 cents per share, down from $106 million, or 49 cents per share, in the previous year, with adjusted earnings of 35 cents per share compared to the expected 39 cents [3][9] - The company has announced a turnaround plan aiming for $250 million in cost savings by 2027, focusing on core products and attracting younger consumers [2][5] Financial Performance - Third-quarter net income was $77 million, a decrease from $106 million year-over-year, with earnings per share of 37 cents compared to 49 cents last year [3] - Revenue for the quarter was reported at $1.59 billion, falling short of the expected $1.63 billion [9] - The company anticipates fourth-quarter revenue to decline in the high single digits, contrasting with Wall Street's expectation of a 1.5% increase [4] Strategic Initiatives - The "Consumer First Formula" strategy includes four priorities: creating innovative products, reigniting the brand, winning in the marketplace, and operating efficiently [5] - The company plans to exit certain product categories, such as haircare and men's grooming, to refocus on core offerings like body care and fragrances [6] - Bath & Body Works aims to enhance its digital presence by revamping its app and website, and lowering the free shipping threshold in early 2026 [8] Market Positioning - CEO Daniel Heaf emphasized the need to adapt to evolving consumer preferences for efficacy, ingredient-led products, and modern packaging [7] - The company is recruiting influencers to generate social buzz and attract new consumers [7]

Core Insights - Bath & Body Works reported weaker-than-expected Q3 results, with a decline in sales and earnings, leading to a cut in full-year guidance [1][2] - CEO Daniel Heaf acknowledged that the company has made mistakes, including failing to attract younger consumers and becoming overly reliant on discounting, which has harmed brand value [2] - The company plans to simplify its product offerings by eliminating hair care and men's grooming products, focusing instead on core areas like body care and home fragrances to attract a younger audience [3][4] Strategic Initiatives - The company aims to "reignite its brand" and transform into a faster and more efficient organization by breaking down silos and speeding up decision-making processes [4] - Bath & Body Works is launching on Amazon to reach new customers, estimating that $60 million to $80 million of its products are sold via the grey market on the platform, presenting a significant sales opportunity [5] - The stock price of Bath & Body Works has decreased by 25% today and 58% this year, indicating market concerns about its performance [5]

Bath & Body Works (NYSE:BBWI) Q3 2026 Earnings Call November 20, 2025 08:30 AM ET Company ParticipantsDana Telsey - CEO and Chief Research OfficerEva Boratto - CFOLuke Long - VP of Investor RelationsDaniel Heaf - CEOConference Call ParticipantsMatthew Boss - Managing Director and Equity Research AnalystJonna Kim - Senior Equity Research AnalystLorraine Hutchinson - Senior Research AnalystMark Altschwager - Managing Director and Senior Research AnalystAdrienne Yih - Managing Director and Senior AnalystOlivia ...

Core Viewpoint - Victoria's Secret & Co. is set to release its third quarter 2025 earnings on December 5, 2025, with a live conference call scheduled for 8:30 a.m. ET to discuss the results [1][2]. Company Overview - Victoria's Secret & Co. (NYSE: VSCO) is a specialty retailer offering modern, fashion-inspired collections, including bras, lingerie, apparel, and fragrances, with a commitment to empowering over 30,000 associates across more than 1,400 retail stores in nearly 70 countries [3].

Core Viewpoint - Victoria's Secret & Co. is experiencing significant momentum and outperformance under the leadership of new CEO Hillary Super, with total shareholder returns of 89% since her appointment, significantly outperforming relevant indices and peers [1][7]. Group 1: Board Engagement and Evaluation - The Board has been actively engaging with BBRC and is currently reviewing Brett Blundy's candidacy for a Board seat, along with his other demands [2][3]. - The Board's evaluation process includes thorough due diligence due to potential conflicts of interest and past conduct-related issues associated with BBRC [3][4]. - Despite the Board's collaborative approach, Mr. Blundy has not responded to follow-up questions, leading to disappointment from the Board regarding BBRC's public communication strategy [4][5]. Group 2: Company Performance and Strategy - Under CEO Hillary Super's leadership, Victoria's Secret & Co. has implemented the "Path to Potential" strategy, resulting in significant outperformance, including beating sales and operating income guidance in the second quarter [6][7]. - The company has increased its full-year sales guidance despite facing tariff headwinds, indicating strong operational performance [6][7]. - The Board has added four new directors since the spin-off from L Brands, enhancing its retail experience and governance [6]. Group 3: Shareholder Communication - Victoria's Secret & Co. is committed to transparent and collaborative communication with BBRC and all shareholders, emphasizing the importance of fulfilling fiduciary duties and enhancing shareholder value [5][8]. - The company appreciates BBRC's investment and aims to capitalize on its current momentum as it approaches the holiday season [7].

Group 1 - Kenvue Inc. (NYSE:KVUE) is considered one of the most oversold large-cap stocks in 2025, with Barclays lowering its price target from $20 to $17 while maintaining an Equal Weight rating [1] - The company operates in the consumer health sector through three segments: Skin Health and Beauty, Self Care, and Essential Health [2] - The Skin Health and Beauty segment includes various product categories such as hair care, body care, and face care, with a global presence in over 165 countries [3] Group 2 - The firm has adjusted its growth models to reflect "muted and decelerating" growth in certain areas of the personal care domain since the Q2 reports [2] - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Kenvue [4]

Core Viewpoint - Victoria's Secret & Co. will participate in a fireside chat at the Goldman Sachs 32nd Annual Global Retailing conference on September 4, 2025, featuring CEO Hillary Super and CFO Scott Sekella [1]. Company Overview - Victoria's Secret & Co. is a specialty retailer offering modern, fashion-inspired collections, including bras, panties, lingerie, apparel, casual sleepwear, swimwear, lounge, and sport items, as well as prestige fragrances and body care [3]. - The company operates leading brands, Victoria's Secret and PINK, and also includes Adore Me, a technology-driven, digital-first intimates brand catering to women of all sizes and budgets [3]. - Victoria's Secret & Co. employs over 30,000 associates and has approximately 1,380 retail stores across nearly 70 countries [3]. Event Details - A live audio webcast of the fireside chat will be available on the company's investor relations website, with a replay accessible afterward [2].

Company Overview - Victoria's Secret & Co. is a specialty retailer offering modern, fashion-inspired collections including bras, panties, lingerie, apparel, and fragrances [2] - The company operates under market-leading brands Victoria's Secret and PINK, and also includes Adore Me, a technology-led intimates brand [2] - Victoria's Secret & Co. employs over 30,000 associates and has approximately 1,380 retail stores in nearly 70 countries [2] Upcoming Earnings Release - The second quarter 2025 earnings release is scheduled for August 28, 2025, before market open [1] - A live webcast of the earnings conference call will take place at 8:30 a.m. ET on the same day [1] - Financial information related to the earnings release will be available on the company's investor relations website [1]

Core Viewpoint - Victoria's Secret & Co. reported first quarter financial results that exceeded expectations, reaffirming its full year 2025 sales guidance [1][2]. Financial Performance - The company reported net sales of $1.353 billion for the first quarter of 2025, surpassing the guidance range of $1.30 billion to $1.33 billion, and remaining flat compared to $1.359 billion in the first quarter of 2024 [5]. - Operating income for the first quarter of 2025 was $20 million, down from $26 million in the first quarter of 2024, with a net loss of $2 million, or $0.02 per diluted share, compared to a net loss of $4 million, or $0.05 per diluted share, in the prior year [6]. - Adjusted operating income for the first quarter of 2025 was $32 million, exceeding the guidance range of $10 million to $30 million, but down from $40 million in the first quarter of 2024. Adjusted net income was $7 million, or $0.09 per diluted share, near the high end of the guidance range [7]. Sales Outlook - For the second quarter of 2025, the company forecasts net sales between $1.380 billion and $1.410 billion, compared to $1.417 billion in the same quarter last year. Adjusted operating income is expected to range from $15 million to $35 million [8]. - The full year sales guidance remains at $6.2 billion to $6.3 billion, with adjusted operating income now expected to be between $270 million and $320 million, revised down from the previous range of $300 million to $350 million due to an estimated net tariff impact of approximately $50 million [9]. Business Strategy - The CEO emphasized the company's focus on customer experience, brand health, and product innovation, highlighting the strength in the Beauty business and PINK apparel [3]. - The CFO noted a disciplined approach to cost control and agility in responding to customer needs, aiming to build on the company's solid foundation [4]. Store Performance - Total net sales for the first quarter included $721.3 million from North American stores, $433.2 million from direct sales, and $198.4 million from international sales, with a total comparable sales decrease of 1% [17]. - The company operated 1,378 stores as of May 3, 2025, after opening 15 and closing 24 stores during the quarter [22].

Core Viewpoint - The Board of Directors of Victoria's Secret & Co. has adopted a limited-duration shareholder rights plan to protect the interests of all shareholders in response to significant stock accumulation by BBRC International Pte Limited [2][3][4] Group 1: Rights Plan Details - The Rights Plan is effective immediately and will expire in one year, specifically on May 18, 2026 [2][8] - Each shareholder will receive one right for each share of common stock as of May 29, 2025, which will initially trade with the common stock [5][8] - The rights become exercisable if any person acquires 15% or more of the outstanding common stock, or 20% for certain passive investors [5][6] Group 2: Rationale for the Rights Plan - The Board adopted the Rights Plan due to the substantial accumulation of shares by BBRC, which began increasing its position to approximately 13% starting in March 2025 [3][6] - The Board expressed concerns about the current market dislocation in the retail sector and its impact on the trading value of the Company's shares, which they believe does not reflect the inherent value of VS&Co [3][4] - The Rights Plan aims to ensure fair treatment of all shareholders in the event of a takeover and to prevent control from being gained without appropriate compensation [4][6] Group 3: Engagement with BBRC - The Company has maintained open dialogue with BBRC and values their investment, indicating a willingness to continue discussions [4] - BBRC has a history of acquiring controlling interests in retail companies and has recently launched a new global lingerie and beauty brand [6][4] Group 4: Company Overview - Victoria's Secret & Co. is a specialty retailer known for its fashion-inspired collections, including lingerie, sleepwear, and beauty products, with a global presence of approximately 1,380 retail stores in nearly 70 countries [9]