Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q3 2020 Earnings Presentation
27 slides from Bath & Body Works's earnings presentation, Nov 19, 2020
Slide 1: Third Quarter Earnings Presentation
Third Quarter Earnings Presentation November 18, 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 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 October 31, 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED CONSOLIDATED STATEMENTS OF INCOME THIRTEEN WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In millions except per share amounts) % Increase Increase 2020 2019 (Decrease) (Decrease) Net Sales $ 3,055.3 $ 2,676.7 $ 378.6 14% Comparable Store Sale
Slide 5: Adjusted Consolidated Statements of Income, Thirty-Nine Weeks Ended October 31, 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED CONSOLIDATED STATEMENTS OF INCOME THIRTY-NINE WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In millions except per share amounts) % Increase Increase 2020 2019 (Decrease) (Decrease) Net Sales $ 7,028.9 $ 8,207.1 $ (1,178.2) -14% Comparable St
Slide 6: Adjusted Operating Income (Loss) by Segment, Thirteen Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT THIRTEEN WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In millions) % Increase Increase 2020 2019 (Decrease) (Decrease) Bath & Body Works $ 494.1 $ 208.8 $ 285.4 137% % of Sales 29.0% 19.0% 1000 bps Victoria
Slide 7: Adjusted Operating Income (Loss) by Segment, Thirty-Nine Weeks
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT THIRTY-NINE WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In millions) % Increase Increase 2020 2019 (Decrease) (Decrease) Bath & Body Works $ 918.5 $ 560.0 $ 358.5 64% % of Sales 24.7% 17.9% 680 bps Victori
Slide 8: Consolidated Condensed Balance Sheets
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In thousands) October 31, 2020 November 2, 2019 ASSETS Current Assets Cash and Cash Equivalents $ 2,622,465 $ 339,961 Accounts Receivable, Net 296,699 295,477 Inventories 1,864,870 2,031,794 Other 142,804 258,926 Tota
Slide 9: L Brands 3rd Quarter
L BRANDS 3RD QUARTER 3rd Quarter 2020 versus 2019 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total L Brands Comparable store sales 38% (10%) 13% Comparable sales 56% 4% 28% Sales change 55% (14%) 14% Sales $1,702 $1,353 $3,055 Adjusted gross profit (% of sales) Up Signif
Slide 10: L Brands Year to Date
L BRANDS YEAR TO DATE Year to Date 2020 versus 2019 ($ amounts in millions) (Unaudited) Bath & Body Works Victoria's Secret Total L Brands Comparable store sales 45% (13%) 13% Comparable sales 70% 3% 30% Sales change 19% (34%) (14%) Sales $3,716 $3,313 $7,029 Adjusted gross profit (% of sales) Up Si
Slide 11: Company-Operated Store Count and Selling Sq Ft 2020 Forecast
L BRANDS COMPANY - OPERATED STORE COUNT AND SELLING SQ FT 2020 Forecast 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%) Selli
Slide 12: International Store Count 2020 Forecast
L BRANDS, INC. INTERNATIONAL STORE COUNT 2020 FORECAST 2020 2019 2020 2020 Transferred to 2020F Year End New Stores Closures Joint Venture Year End Bath & Body Works International Partner - Operated Stores Bath & Body Works - Local Market 262 10 to 12 4 to 7 0 265 to 270 Bath & Body Works - Travel R
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 OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Net Sales $ 3,055,276 $ 2,676,747 Costs of Goods Sold, Buying and Occupancy (1,695,787) (1,936,244) Gross
Slide 15: Adjusted Financial Information, Thirteen Weeks Ended October 31, 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED FINANCIAL INFORMATION THIRTEEN WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 3,055,276 $ - $ 3,055,276 $ 2,676,747 $ - $
Slide 16: Consolidated Statements of Income (Loss), Thirty-Nine Weeks
L BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (LOSS) THIRTY-NINE WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Net Sales $ 7,028,951 $ 8,207,095 Costs of Goods Sold, Buying and Occupancy (4,669,373) (5,550,340) Gro
Slide 17: Adjusted Financial Information, Thirty-Nine Weeks Ended October 31, 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED FINANCIAL INFORMATION THIRTY-NINE WEEKS ENDED OCTOBER 31, 2020 AND NOVEMBER 2, 2019 (Unaudited) (In thousands except per share amounts) 2020 2019 Reported Adjustments Adjusted Reported Adjustments Adjusted Net Sales $ 7,028,951 $ 7,028,951 $ 8,207,095 $ - $ 8
Slide 18: Notes to Reconciliation of GAAP to Non-GAAP Financial 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 third quarter of 2020, adjusted results e
Slide 19: Notes to Reconciliation of GAAP to Non-GAAP Financial 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 third quarter of 2019, adjusted results e
Slide 20: Company-Operated Stores and Selling Square Footage
L BRANDS, INC. AND SUBSIDIARIES COMPANY - OPERATED STORES AND SELLING SQUARE FOOTAGE At October 31, 2020 and November 2, 2019 October 31, 2020 November 2, 2019 Selling Selling Stores Sq. Ft. (000's) Stores Sq. Ft. (000's) Bath & Body Works U.S. 1,643 4,360 1,641 4,301 Bath & Body Works Canada 103 26
Slide 21: 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 66,701 Year $ 200,164 $ 458,357 Depreciation & Amortiz
Slide 22: Results by Segment, Fiscal Year 2020
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2020 Unaudited $ (In thousands) The following schedules were previously filed on Form 8‐K and provide reconciliations of certain historical financial information from our prior segment reporting structure to the new segment reporting str
Slide 23: Adjusted Results by Segment, Fiscal Year 2020
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED RESULTS BY SEGMENT FISCAL YEAR 2020 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment repo
Slide 24: Results by Segment, Fiscal Year 2019
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2019 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting wer
Slide 25: Adjusted Results by Segment, Fiscal Year 2019
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED RESULTS BY SEGMENT FISCAL YEAR 2019 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment repo
Slide 26: Results by Segment, Fiscal Year 2018
L BRANDS, INC. AND SUBSIDIARIES RESULTS BY SEGMENT FISCAL YEAR 2018 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment reporting wer
Slide 27: Adjusted Results by Segment, Fiscal Year 2018
L BRANDS, INC. AND SUBSIDIARIES ADJUSTED RESULTS BY SEGMENT FISCAL YEAR 2018 Unaudited $ (In thousands) Effective in the third quarter of 2020, the Company now has two reporting segments: 1) Bath & Body Works and 2) Victoria's Secret. As a result, the following key reclassifications for segment repo