Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q1 2025 Earnings Presentation
26 slides from Bath & Body Works's earnings presentation, May 29, 2025
Slide 1: Q1 2025 Earnings & 2025 Guidance
Q1 2025 EARNINGS & 2025 GUIDANCE May 29, 2025 1
Slide 2: Q1 Earnings Call Participants
Q1 EARNINGS CALL PARTICIPANTS DANIEL HEAF EVA BORATTO LUKE LONG Chief Executive Officer Chief Financial Officer VP Strategy & Investor Relations 22
Slide 3: 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 report or made by our Company or our manageme
Slide 4: Daniel Heaf, CEO quote
“We see a clear opportunity to transform Bath & Body Works to accelerate our growth, deepen our customer connection, and continue evolving for the future.” – Daniel Heaf, CEO 44
Slide 5: Accelerate growth by putting the consumer at the center
Listen to our consumers and gather insights Accelerate growth Use insights to create innovative and by putting the coveted product consumer at the Tell bold and emotional brand and center of product stories everything we do Bring it all to life in an integrated and elevated omni-channel marketplace
Slide 6: Q1 2025 Financial Highlights
Q1 2025 FINANCIAL HIGHLIGHTS Net sales at the high end of guidance & earnings per diluted share exceeding the high end of guidance. $1.4B 45.4% +160 bps LY +2.9% LY Gross Profit Rate Strongest quarter of underlying sales Net Sales growth since 2021. Positive dual channel traffic, with traffic exceed
Slide 7: Key Priorities
KEY PRIORITIES Accelerating topline growth Enhancing operational excellence and efficiency Strengthening our financial positioning and disciplined return of capital 77
Slide 8: Top Line Growth Drivers
TOP LINE GROWTH DRIVERS Consumer excitement around fragrance innovation drove growth across all three core categories. Disney collaboration was an undeniable success and exceeded our expectations. Consumers celebrated meaningful moments during Valentine's Day, Easter and the start to Mother’s Day. 8
Slide 9: Q1 2025 North American Category Performance
Q1 2025 NORTH AMERICAN CATEGORY PERFORMANCE BODY CARE HOME FRAGRANCE SOAPS & SANITIZERS Q1 sales up low-single digits Q1 sales up low-single digits Q1 sales up mid-single digits • Performance driven by success in our • Performance driven by single wick • Performance driven by Sanitizer Disney Prince
Slide 10: Strong Innovation Pipeline
STRONG INNOVATION PIPELINE Continue to evolve with customer preferences and on-trend fragrances COAST TO COAST OFF THE VINE TRUE BLUE SPA 10
Slide 11: Customer Experience
CUSTOMER EXPERIENCE Enhanced by Marketing, Loyalty, Technology We continue to improve our customer experience both in-store and online. Introducing new in-store innovations featuring an elevated design, a more open layout, interactive fragrance bars, and integrated technology. Our talented store des
Slide 12: Strong Loyalty Program
STRONG LOYALTY PROGRAM ~39M Over 80% Active1 loyalty members as of Of Q1 2025 U.S. sales the end of Q1 2025 driven by loyalty members + 4% to Q1 LY + 3 pts to Q1 LY 1 - Active members of our loyalty program represent loyalty program members who have purchased at least once directly from the c ompany
Slide 13: Adjacencies
ADJACENCIES Our adjacent categories of Men's, Lip, Hair and Laundry represent approximately 10% of total sales. Adjacencies are an opportunity to expand and diversify our product portfolio, applying our fragrance expertise and leadership to large addressable markets. Our Men’s category remains a com
Slide 14: International
INTERNATIONAL International expansion remains an important pillar of our long-term strategy, with significant opportunity for long-term growth. Forum Buenavista - Mexico Al Suyoh Mall - UAE 14
Slide 15: Operational Efficiency & Disciplined Return of Capital
OPERATIONAL EFFICIENCY & DISCIPLINED RETURN OF CAPITAL Leveraging a continuous improvement mindset and operational efficiencies to drive sustained financial strength. Ohio-based Beauty Park continues to be a significant advantage, driving speed and operational agility with 80% of our products manufa
Slide 16: Q1 2025 Net Sales by Channel
Q1 2025 NET SALES BY CHANNEL 78% 17% 5% Stores – U.S. Direct – U.S. International & Canada & Canada $1.1B $250M $64M + 4.3% to Q1 LY - 4.3% to Q1 LY + 10.1% to Q1 LY Q1 Store sales benefitted ~2 pts BOPIS net sales are reported as store net sales, and Q1 International system-wide from BOPIS BOPIS de
Slide 17: Q1 2025 Financial Results
KEY HIGHLIGHTS Q1 2025 FINANCIAL RESULTS $ in millions, except earnings per share • Net sales of $1.4B at the high end of vs. LY GUIDANCE guidance and increased 2.9% compared ACTUALS Favorable/(Unfavorable) (February 27, 20251) to prior year. Net Sales $1,424 +2.9% +1 – +3% • Strongest quarter of un
Slide 18: Store Count and Company-Operated Selling Square Feet
STORE COUNT AND COMPANY-OPERATED SELLING SQUARE FEET Q1 2025 Total Company-Operated Stores Stores Selling Sq. Ft. (000’s) Opened/ 2/1/2025 Opened Closed 5/3/2025 2/1/2025 Closed 5/3/2025 Remodels Bath & Body Works U.S. 1,782 13 (8) 1,787 5,066 34 (16) 5,083 Bath & Body Works Canada 113 - - 113 325 -
Slide 19: FY 2025 Guidance
KEY HIGHLIGHTS FY 2025 GUIDANCE • For the full year 2025, we are maintaining our net sales guidance of 1% to 3% growth and our $ in millions, except earnings per share earnings per diluted share guidance range of $3.25 to $3.60. METRIC GUIDANCE GUIDANCE (May 29, 20251) (February 27, 20252) • Our ful
Slide 20: Q2 2025 Guidance
Q2 2025 GUIDANCE KEY HIGHLIGHTS $ in millions, except earnings per share • We expect Q2 net sales of flat to 2% growth to prior year, reflecting the current GUIDANCE trends in our business and lapping METRIC (May 29, 20251) accounting items in the prior year, largely loyalty. Net Sales Flat to up 2%
Slide 21: Capital Allocation Highlights
CAPITAL ALLOCATION HIGHLIGHTS Q1’25 Results FY’25 Guidance Capital $37M Expenditures $250M - $270M Dividend $43M ~$170M Payments $0.20/share dividend maintain $0.80/share annual dividend Share Repurchases $135M $300M FY '25 Free Cash Flow Guidance $750M - $850M 21 Note: See Appendix for important in
Slide 22: Strong Business Model
LEADER IN STRONG ATTRACTIVE SPACES HEALTHY MARGINS BUSINESS MODEL Market leader in each of our ~17% Operating Margins2 3 core categories: Home We are laser focused Fragrance, Soaps & on accelerating growth and Sanitizers, and Body Care1 creating value for our customers and shareholders. STRONG FOREC
Slide 23: Q&A
Q&A 23 23
Slide 24: Appendix
Appendix Other financial information 24 24
Slide 25: Debt Maturities
DEBT MATURITIES as of May 3, 2025 25
Slide 26: Free Cash Flow Information – FY 2025
FREE CASH FLOW INFORMATION – FY 2025 $ in millions 26