Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q2 2020 Earnings Presentation
20 slides from Bath & Body Works's earnings presentation, Aug 20, 2020
Slide 1: Second Quarter Earnings Presentation
Second Quarter Earnings Presentation August 19, 2020
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this press release or made by our company or our management involve risks and
Slide 3: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 fluctuations in foreign currency exchange rates; stock price volatility; our ability to pay dividends and related effects; our ability to maintain our credit rating; our ability to service or refinance our deb
Slide 4: Adjusted Consolidated Statements of Income, Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED CONSOLIDATED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In millions except per share amounts) % Increase Increase 2020 2019 (Decrease) (Decrease) Net Sales $ 2,319.5 $ 2,901.5 $ (582.0) -20% Comparable Store Sales
Slide 5: Adjusted Consolidated Statements of Income (Loss), Twenty-Six Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) TWENTY-SIX WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In millions except per share amounts) % Increase Increase 2020 2019 (Decrease) (Decrease) Net Sales $ 3,973.7 $ 5,530.3 $ (1,556.6) -28% Comparable
Slide 6: Adjusted Operating Income (Loss) by Segment, Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT THIRTEEN WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In millions) % Increase Increase 2020 2019 (Decrease) (Decrease) Bath & Body Works $ 330.9 $ 180.2 $ 150.7 84% % of Sales 27.7% 17.0% 1070 bps Victoria's Se
Slide 7: Adjusted Operating Income (Loss) by Segment, Twenty-Six Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT TWENTY-SIX WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In millions) % Increase Increase 2020 2019 (Decrease) (Decrease) Bath & Body Works $ 400.0 $ 335.1 $ 64.9 19% % of Sales 21.0% 17.3% 370 bps Victoria's Se
Slide 8: Consolidated Condensed Balance Sheets
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In thousands) August 1, 2020 August 3, 2019 ASSETS Current Assets Cash and Cash Equivalents $ 2,611,440 $ 852,548 Accounts Receivable, Net 268,348 282,657 Inventories 1,476,421 1,328,888 Other 148,886 188,728 Total Cu
Slide 9: L Brands 2nd Quarter
L BRANDS 2ND QUARTER 2nd Quarter 2020 versus 2019 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total L Brands Comparable store sales 87% (10%) 33% Comparable sales 123% 28% 63% Sales change 13% (39%) (20%) Sales $1,197 $978 $2,319 Adjusted gross profit (% of sales) Up Sign
Slide 10: L Brands Year to Date
L BRANDS YEAR TO DATE Year to Date 2020 versus 2019 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total L Brands Comparable store sales 54% (13%) 12% Comparable sales 84% 6% 32% Sales change (1%) (42%) (28%) Sales $1,909 $1,799 $3,974 Adjusted gross profit (% of sales) Flat
Slide 11: Company-Owned Store Count and Selling Sq Ft 2020 Forecast
L BRANDS COMPANY - OWNED STORE COUNT AND SELLING SQ FT 2020 Forecast Total Beginning of Reconstructions New Stores Closures End of Year Increase / (Decrease) Year and Change in SSF Bath & Body Works Bath & Body Works Store Count 1,637 24 to 26 (30) to (50) 25 to 27 1,611 to 1,633 (26) to (4) (2%) to
Slide 12: International Store Count 2020 Forecast
L BRANDS, INC. INTERNATIONAL STORE COUNT 2020 FORECAST 2019 2020 2020 2020F Year End New Stores Closures Year End Bath & Body Works International Partner Owned Stores Bath & Body Works - Local Market 262 10 to 11 3 to 4 268 to 270 Bath & Body Works - Travel Retail 16 1 to 2 0 17 to 18 Bath & Body Wo
Slide 13: Appendix
APPENDIX
Slide 14: Consolidated Statements of Income (Loss), Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) THIRTEEN WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Net Sales $ 2,319,466 $ 2,901,538 Costs of Goods Sold, Buying and Occupancy (1,607,986) (1,919,300) Gross Prof
Slide 15: Adjusted Financial Information, Thirteen Weeks Ended August 1, 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED FINANCIAL INFORMATION THIRTEEN WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 2,319,466 $ - $ 2,319,466 $ 2,901,538 $ - $ 2,90
Slide 16: Consolidated Statements of Income (Loss), Twenty-Six Weeks
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) TWENTY-SIX WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Net Sales $ 3,973,675 $ 5,530,347 Costs of Goods Sold, Buying and Occupancy (2,973,586) (3,614,095) Gross Pr
Slide 17: Adjusted Financial Information, Twenty-Six Weeks Ended August 1, 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED FINANCIAL INFORMATION TWENTY-SIX WEEKS ENDED AUGUST 1, 2020 AND AUGUST 3, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 3,973,675 $ - $ 3,973,675 $ 5,530,347 $ - $ 5,
Slide 18: Notes to Reconciliation of GAAP Financial Measures to Non-GAAP
L BRANDS, INC. AND SUBSIDIARIES NOTES TO RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES (Unaudited) The “Adjusted Financial Information” provided in the attached reflects the following non-GAAP financial measures: Fiscal 2020 In the first quarter of 2020, adjusted results e
Slide 19: Stores and Selling Square Footage
L BRANDS, INC. AND SUBSIDIARIES STORES AND SELLING SQUARE FOOTAGE At August 1, 2020 and August 3, 2019 August 1, 2020 August 3, 2019 Selling Selling Stores Sq. Ft. (000's) Stores Sq. Ft. (000's) Bath & Body Works U.S. 1,633 4,308 1,632 4,253 Bath & Body Works Canada 102 260 103 260 Total Bath & Body
Slide 20: 2020 Selected Data
L BRANDS, INC. AND SUBSIDIARIES 2020 Selected Data (Unaudited) (In thousands) 2020 2019 Capital Expenditures First Quarter $ 55,221 $ 123,307 Second Quarter 68,788 120,388 Spring Season 124,009 243,695 Third Quarter - 147,961 Fourth Quarter - 66,701 Year $ 124,009 $ 458,357 Depreciation & Amortizati