Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q4 2020 Earnings Presentation
24 slides from Bath & Body Works's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter Earnings Presentation
Fourth Quarter Earnings Presentation February 24, 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 volatility in currency exchange rates; local business practices and political issues; potential delays or disruptions in shipping and transportation and related pricing impacts; disruption due to labor disputes;
Slide 4: Adjusted Consolidated Statements of Income, Thirteen Weeks Ended January 30, 2021
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED CONSOLIDATED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In millions except per share amounts) % Increase Increase 2020 2019 (Decrease) (Decrease) Net Sales $ 4,817.9 $ 4,707.1 $ 110.8 2% Comparable Store Sales
Slide 5: Adjusted Consolidated Statements of Income, Fifty-Two Weeks Ended January 30, 2021
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED CONSOLIDATED STATEMENTS OF INCOME FIFTY-TWO WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In millions except per share amounts) % Increase Increase 2020 2019 (Decrease) (Decrease) Net Sales $ 11,846.9 $ 12,914.2 $ (1,067.3) -8% Comparable Sto
Slide 6: Adjusted Operating Income (Loss) by Segment, Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT THIRTEEN WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In millions) % Increase Increase 2020 2019 (Decrease) (Decrease) Bath & Body Works $ 913.7 $ 663.7 $ 250.0 38% % of Sales 33.6% 29.8% 380 bps Victoria's
Slide 7: Adjusted Operating Income (Loss) by Segment, Fifty-Two Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT FIFTY-TWO WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In millions) % Increase Increase 2020 2019 (Decrease) (Decrease) Bath & Body Works $ 1,832.2 $ 1,223.8 $ 608.4 50% % of Sales 28.5% 22.9% 560 bps Victo
Slide 8: Consolidated Condensed Balance Sheets
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In thousands) January 30, 2021 February 1, 2020 ASSETS Current Assets Cash and Cash Equivalents $ 3,902,519 $ 1,498,718 Accounts Receivable, Net 268,659 305,642 Inventories 1,272,540 1,286,622 Other 134,837 153,884 To
Slide 9: 4th Quarter 2020 versus 2019
L BRANDS 4TH QUARTER 4th Quarter 2020 versus 2019 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total L Brands Comparable store sales 9% (18%) (3%) Comparable sales 22% (3%) 10% Sales change 22% (15%) 2% Sales $2,718 $2,100 $4,818 Gross profit (% of sales) Up Significantly
Slide 10: Full Year 2020 versus 2019
L BRANDS FULL YEAR Full Year 2020 versus 2019 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total L Brands Comparable store sales 26% (15%) 5% Comparable sales 45% 1% 21% Sales change 20% (28%) (8%) Sales $6,434 $5,413 $11,847 Adjusted gross profit (% of sales) Up Significa
Slide 11: 2021 Outlook as of February 24, 2021
L Brands, Inc. 2021 Outlook as of February 24, 2021 First Quarter Net Sales About flat to 2019 sales of $2.6 billion Gross Margin Rate Up significantly from 2019 rate of 35.5% SG&A Expense Rate About flat to 2019 rate of 29.7% Net Non-Operating Expense About $120 million Tax Rate (before discrete it
Slide 12: Company-Operated Store Count and Selling Sq Ft 2020 Actuals
L BRANDS COMPANY - OPERATED STORE COUNT AND SELLING SQ FT 2020 Actuals Total Beginning of Transferred to Joint Reconstructions New Stores Closures End of Year Increase / (Decrease) Year Venture and Change in SSF Bath & Body Works Bath & Body Works Store Count 1,637 26 (30) - 27 1,633 (4) (0%) Sellin
Slide 13: Company-Operated Store Count and Selling Sq Ft 2021 Forecast
L BRANDS 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 49 (20) to (40) 70 1,642 to 1,662 9 to 29 1% to 2% Selling Sq
Slide 14: International Store Count 2020 Actuals
L BRANDS, INC. INTERNATIONAL STORE COUNT 2020 ACTUALS 2020 2019 2020 2020 Transferred to 2020 Year End New Stores Closures Joint Venture Year End Bath & Body Works International Partner - Operated Stores Bath & Body Works - Local Market 262 12 (4) 0 270 Bath & Body Works - Travel Retail 16 2 0 0 18
Slide 15: International Store Count 2021 Forecast
L BRANDS, 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 50 to 70 (4 to 7) 313 to 336 Bath & Body Works - Travel Retail 18 0 to 1 (0 to 1) 17 to 19
Slide 16: Appendix
APPENDIX
Slide 17: Consolidated Statements of Income (Loss), Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) THIRTEEN WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In thousands except per share amounts) 2020 2019 Net Sales $ 4,817,940 $ 4,707,141 Costs of Goods Sold, Buying and Occupancy (2,511,020) (2,913,454) Gross
Slide 18: Adjusted Financial Information, Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED FINANCIAL INFORMATION THIRTEEN WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In thousands except per share amounts) 2020 2019 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 4,817,940 $ - $ 4,817,940 $ 4,707,141 $ - $
Slide 19: Consolidated Statements of Income (Loss), Fifty-Two Weeks
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) FIFTY-TWO WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In thousands except per share amounts) 2020 2019 Net Sales $ 11,846,891 $ 12,914,236 Costs of Goods Sold, Buying and Occupancy (7,180,393) (8,463,793) Gro
Slide 20: Adjusted Financial Information, Fifty-Two Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED FINANCIAL INFORMATION FIFTY-TWO WEEKS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020 (Unaudited) (In thousands except per share amounts) 2020 2019 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 11,846,891 $ - $ 11,846,891 $ 12,914,236 $
Slide 21: Notes to Reconciliation of GAAP to Non-GAAP Measures, Fiscal 2020
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 fourth quarter of 2020, there were no adj
Slide 22: Notes to Reconciliation of GAAP to Non-GAAP Measures, Fiscal 2019
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 2019 In the fourth quarter of 2019, adjusted results
Slide 23: Company-Operated Stores and Selling Square Footage
L BRANDS, INC. AND SUBSIDIARIES COMPANY - OPERATED STORES AND SELLING SQUARE FOOTAGE At January 30, 2021 and February 1, 2020 January 30, 2021 February 1, 2020 Selling Selling Stores Sq. Ft. (000's) Stores Sq. Ft. (000's) Bath & Body Works U.S. 1,633 4,344 1,637 4,306 Bath & Body Works Canada 103 26
Slide 24: 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 76,155 147,961 Fourth Quarter 28,176 66,701 Year $ 228,340 $ 458,357 Depreciation &