Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q2 2021 Earnings Presentation
23 slides from Bath & Body Works's earnings presentation, Aug 19, 2021
Slide 1: Second Quarter Earnings Presentation
Second Quarter Earnings Presentation August 18, 2021
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 presentation 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 o duties, taxes and other charges; o legal and regulatory matters; o volatility in currency exchange rates; o local business practices and political issues; o potential delays or disruptions in shipping and transportati
Slide 4: Adjusted Consolidated Statements of Income, Thirteen Weeks Ended July 31, 2021
BATH & BODY WORKS, INC. ADJUSTED CONSOLIDATED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In millions except per share amounts) % Increase Increase 2021 2020 (Decrease) (Decrease) Net Sales $ 3,317.5 $ 2,319.5 $ 998.0 43% Comparable Store Sales -9% 33% Com
Slide 5: Adjusted Consolidated Statements of Income, Twenty-Six Weeks Ended July 31, 2021
BATH & BODY WORKS, INC. ADJUSTED CONSOLIDATED STATEMENTS OF INCOME (LOSS) TWENTY-SIX WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In millions except per share amounts) % Increase Increase 2021 2020 (Decrease) (Decrease) Net Sales $ 6,341.3 $ 3,973.7 $ 2,367.6 60% Comparable Store Sales
Slide 6: Adjusted Operating Income (Loss) by Segment, Thirteen Weeks
BATH & BODY WORKS, INC. ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT THIRTEEN WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In millions) % Increase Increase 2021 2020 (Decrease) (Decrease) Bath & Body Works $ 430.9 $ 348.6 $ 82.3 24% % of Sales 25.3% 27.8% (250 bps) Victoria's Secret 232.
Slide 7: Adjusted Operating Income (Loss) by Segment, Twenty-Six Weeks
BATH & BODY WORKS, INC. ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT TWENTY-SIX WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In millions) % Increase Increase 2021 2020 (Decrease) (Decrease) Bath & Body Works $ 810.8 $ 424.3 $ 386.5 91% % of Sales 25.6% 21.1% 450 bps Victoria's Secret 477
Slide 8: Consolidated Condensed Balance Sheets
BATH & BODY WORKS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In thousands) July 31, 2021 August 1, 2020 ASSETS Current Assets Cash and Cash Equivalents $ 1,987,767 $ 2,611,440 Cash in Escrow related to Victoria's Secret & Co. Spin-Off 600,000 - Accounts Receivable, Net 229,633 268,348
Slide 9: BBWI 2nd Quarter
BBWI 2ND QUARTER 2nd Quarter 2021 versus 2020 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total BBWI Comparable store sales (23%) 16% (9%) Comparable sales (22%) (9%) (16%) Sales change 36% 51% 43% Sales $1,704 $1,614 $3,318 Gross profit (% of sales) Up Significantly Up S
Slide 10: BBWI Year to Date
BBWI YEAR TO DATE Year to Date 2021 versus 2020 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total BBWI Comparable store sales (10%) 9% (2%) Comparable sales (8%) 6% (1%) Sales change 58% 62% 60% Sales $3,173 $3,168 $6,341 Gross profit (% of sales) Up Significantly Up Sign
Slide 11: 2021 Outlook as of August 18, 2021
Bath & Body Works, Inc. 2021 Outlook as of August 18, 2021 Metric Third Quarter Net Sales Up 40% to 45% compared to 2019 sales of $1.1 billion Up about 100 to 150 basis points compared to 2019’s rate Gross Margin Rate of 43.8% SG&A Expense Dollars1 Down slightly compared to $427 million LY Net Non-O
Slide 12: Company-Operated Store Count and Selling Sq Ft, 2021 Forecast
BATH & BODY WORKS, INC. COMPANY - OPERATED STORE COUNT AND SELLING SQ FT 2021 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 1,633 54 (40) 74 1,647 14 1% Selling Sq Ft 000's 4,34
Slide 13: International Store Count 2021 Forecast
BATH & BODY WORKS, INC. INTERNATIONAL STORE COUNT 2021 FORECAST 2020 2021 2021 2021F Year End New Stores Closures Year End Bath & Body Works International Partner - Operated Stores Bath & Body Works - Local Market 270 54 to 58 (8 to 9) 315 to 320 Bath & Body Works - Travel Retail 18 3 to 4 (0 to 2)
Slide 14: Appendix
APPENDIX 14
Slide 15: Consolidated Statements of Income (Loss), Thirteen Weeks Ended July 31, 2021
BATH & BODY WORKS, INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) THIRTEEN WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In thousands except per share amounts) 2021 2020 Net Sales $ 3,317,573 $ 2,319,466 Costs of Goods Sold, Buying and Occupancy (1,819,608) (1,607,986) Gross Profit 1,497,
Slide 16: Consolidated Statements of Income (Loss), Twenty-Six Weeks Ended July 31, 2021
BATH & BODY WORKS, INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) TWENTY-SIX WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In thousands except per share amounts) 2021 2020 Net Sales $ 6,341,272 $ 3,973,675 Costs of Goods Sold, Buying and Occupancy (3,429,469) (2,973,586) Gross Profit 2,91
Slide 17: Adjusted Financial Information, Thirteen Weeks Ended July 31, 2021
BATH & BODY WORKS, INC. ADJUSTED FINANCIAL INFORMATION THIRTEEN WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In thousands except per share amounts) 2021 2020 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 3,317,573 $ - $ 3,317,573 $ 2,319,466 $ - $ 2,319,466 Cos
Slide 18: Adjusted Financial Information, Twenty-Six Weeks Ended July 31, 2021
BATH & BODY WORKS, INC. ADJUSTED FINANCIAL INFORMATION TWENTY-SIX WEEKS ENDED JULY 31, 2021 AND AUGUST 1, 2020 (Unaudited) (In thousands except per share amounts) 2021 2020 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 6,341,272 $ - $ 6,341,272 $ 3,973,675 $ - $ 3,973,675 C
Slide 19: Notes to Reconciliation of GAAP Financial Measures to Non-GAAP
BATH & BODY WORKS, INC. 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 2021 In the second quarter of 2021, there were no adjustments
Slide 20: Company-Operated Stores and Selling Square Footage
BATH & BODY WORKS, INC. COMPANY - OPERATED STORES AND SELLING SQUARE FOOTAGE At July 31, 2021 and August 1, 2020 July 31, 2021 August 1, 2020 Selling Selling Stores Sq. Ft. (000's) Stores Sq. Ft. (000's) Bath & Body Works U.S. 1,663 4,472 1,633 4,308 Bath & Body Works Canada 103 267 102 260 Total Ba
Slide 21: 2021 Selected Data
BATH & BODY WORKS, INC. 2021 Selected Data (Unaudited) (In thousands) 2021 2020 Capital Expenditures First Quarter $ 64,545 $ 55,221 Second Quarter 113,238 68,788 Spring Season 177,783 124,009 Third Quarter - 76,155 Fourth Quarter - 28,176 Year $ 177,783 $ 228,340 Depreciation & Amortization First Q
Slide 22: Comparable Sales Increase (Decrease) (Stores and Direct)
Comparable Sales Increase (Decrease) (Stores and Direct): Year- Year- Second Second to- to- Quarter Quarter Date Date 2021 2020 2021 2020 Bath & Body Works1 (22%) 123% (8%) 84% Victoria’s Secret1 (9%) 24% 6% 3% Bath & Body Works, Inc.2 (16%) 63% (1%) 32% NOTE: Stores are excluded from the comparable
Slide 23: Comparable Sales Increase (Decrease) (Stores Only)
Comparable Sales Increase (Decrease) (Stores Only): Year- Year- Second Second to- to- Quarter Quarter Date Date 2021 2020 2021 2020 Bath & Body Works1 (23%) 87% (10%) 54% Victoria’s Secret1 16% (12%) 9% (16%) Bath & Body Works, Inc.2 (9%) 33% (2%) 12% NOTE: Stores are excluded from the comparable sa