Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q4 2023 Earnings Presentation
20 slides from Bath & Body Works's earnings presentation, Feb 29, 2024
Slide 1: 2023 Year End Results & 2024 Outlook
Revision 1 2023 Year End Results & 2024 Outlook February 29, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 ma
Slide 3: 2023 Business Overview and Highlights
2023 Business Overview and Highlights 3
Slide 4: 2023 Business Highlights
2023 Business Highlights E LEVATE OUR BRAND AND PRODUCT E NGAGE OUR CUSTOMER E NABLE A SEAMLESS EXPERIENCE E XTEND OUR REACH E NHANCE OPERATIONAL EXCELLENCE Completed reformulation of Scaled our loyalty program to Evolving digital experience to Our investments in both our Delivered ~$150M in cost sa
Slide 5: Q4'23 Financial Results & Highlights
Q4’23 Financial Results & Highlights $2.9B 45.9% 23.9% $2.06 Adjusted EPS from Continuing Net Sales Gross Margin Operating Margin Operations Up 0.8% YoY +260bp to LY +130bp to LY Up 10.7% YoY Adjusted to exclude 14th Adjusted to exclude 14th week: Down 2.0%1 week: Up 7.9%1 We delivered strong financ
Slide 6: FY'23 Financial Results & Highlights
FY’23 Financial Results & Highlights $7.4B 43.6% 17.3% $3.27 Adjusted EPS from Continuing Net Sales Gross Margin Operating Margin Operations Down 1.7% YoY +50bps to LY (90bp) to LY Down 4.0% YoY Adjusted to exclude 53rd Adjusted to exclude 53rd week: Down 2.8%1 week: Down 5.5%1 We delivered financia
Slide 7: Enhancing Shareholder Value
Enhancing Shareholder Value 2023 Full-Year Free Cash Flow of $656 Million • Net Cash Flow from Operating Activities of $954M • Capital Expenditures of $298M, primarily focused on real estate and technology investments 2023 Full-Year Dividend Payments of $182 Million Full-Year Stock Buyback under Feb
Slide 8: Bath & Body Works Loyalty Program
Bath & Body Works Loyalty Program ~37M Nearly 80% Active* loyalty members as of Of full-year 2023 U.S. sales were YE 2023 made by loyalty members +over 30% to LY Q4’ 23 +12 pts to LY * Active members of our loyalty program represent loyalty program members who have purchased at least once directly f
Slide 9: Fourth Quarter 2023 Financial Results and Highlights
Fourth Quarter 2023 Financial Results and Highlights 9
Slide 10: Fourth Quarter 2023
Fourth Quarter 2023 Key Highlights Metric Actuals1 LY Outlook (November 16, 20232) Net sales were $2.9 billion and grew 0.8% compared to 2022. This was above the high end of our expectations and reflects a strong performance during holiday. The extra week in 2023 Net Sales $2,912 million, up 0.8%
Slide 11: 2023 Category Highlights
2023 Category Highlights FY’23 2023 Highlights – All Categories Outperformed Expectations (% of North American Sales) Fragrance • In Q4, Home fragrance was down low single digits. Home • First ever loyalty omni access event for Candle Day Weekend which delivered our highest US dual channel sales day
Slide 12: Sales by Channel FY2023
Sales by Channel FY2023 74% 21% 5% Stores – U.S. Direct – U.S. International & Canada & Canada $5.5B $1.6B $0.3B 1,850 locations 485 locations +4% square footage Profitable business compared to LY Asset light profit accretive 99% of stores profitable franchise model 12 Note: Data from FY23
Slide 13: 2024 Outlook
Bath&Body Works: 2024 Outlook 13
Slide 14: FY 2024 Outlook
FY 2024 Outlook Key Highlights Metric Outlook1 Net sales to range from down 3.0% to flat vs. LY. Extra week represents an ~100 basis point headwind to Net Sales Down 3.0% - Flat 2024 net sales growth. We expect to see net sales inflect and begin to grow Gross Profit Rate ~43.5% during the second
Slide 15: Q1 2024 Outlook
Q1 2024 Outlook Key Highlights Metric Outlook1 Gross profit rate expected to be flattish driven by favorable merchandise margin rate partially Net Sales Down 4.5% - Down 2.0% offset by deleverage in buying and occupancy. Gross Profit Rate ~42.5% AURs are expected to be flat as we take a measured
Slide 16: Appendix – Other Financial Information
Appendix – Other Financial Information 16
Slide 17: Long-Term Debt Maturities
Long-Term Debt Maturities as of February 3, 2024 $1,000 $900 $938 $800 $811 $700 $600 $613 $500 $500 $462 $400 $300 $314 $297 $294 $200 $201 $100 $0 9.375% 6.694% 5.250% 7.500% 6.625% $0 $0 6.950% 6.875% 6.750% 7.600% $0 2024 2025 $0 2026 2027 (1) 2028 2029 2030 2031 2032 2033 $0 2034 2035 2036 2037
Slide 18: Adjusted Financial Information
Adjusted Financial Information $ in millions, except per share amounts 18
Slide 19: 2023 v 2022 General, Administrative and Store Operating Expenses Summary
2023 v 2022 General, Administrative and Store Operating Expenses Summary $ in millions 2023 Q1 Q2 Q3 Q4 Full-Year $s % of Net Sales $s % of Net Sales $s % of Net Sales $s % of Net Sales $s % of Net Sales Selling Expenses $ 243 17.4% $ 253 16.2% $ 283 18.1% $ 398 13.7% $ 1,177 15.8% Home Office & Mar
Slide 20: Store Count and Company-Operated Selling Square Feet – 2023 Actuals
Store Count and Company-Operated Selling Square Feet – 2023 Actuals Total Company-Operated Stores: Stores Selling Sq. Ft. (000's) Opened / 1/28/2023 Opened Closed 2/3/2024 1/28/2023 Remodeled Closed 2/3/2024 Bath & Body Works U.S. 1,693 93 (47) 1,739 4,712 306 (102) 4,916 Bath & Body Works Canada 10