Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q2 2025 Earnings Presentation
31 slides from Bath & Body Works's earnings presentation, Aug 28, 2025
Slide 1: Q2 2025 Earnings & 2025 Guidance
Q2 2025 EARNINGS & 2025 GUIDANCE August 28, 2025 1
Slide 2: Q2 Earnings Call Participants
Q2 EARNINGS CALL PARTICIPANTS DANIEL HEAF EVA BORATTO LUKE LONG Chief Executive Officer Chief Financial Officer VP Strategy & Investor Relations 2 2
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: CEO quote on serving consumers with affordable, high-quality products
"Regardless of the macro environment, we are well positioned to serve consumers with affordable, high-quality products that bring joy to their lives, and I believe there is even more opportunity ahead." - Daniel Heaf 4 4
Slide 5: We will accelerate growth by putting the consumer at the center
• Listen to our consumers and gather insights We will accelerate • Use insights to create innovative and coveted product growth by putting the consumer at the • Tell bold and emotional brand and product stories center of everything we do • Bring it all to life in an integrated and elevated omni-chan
Slide 6: Three No-Regret Moves
THREE NO-REGRET MOVES These moves will put us in front of more consumers, and we are confident they will drive durable and profitable growth over time. Amplifying our efficacy Elevating our message – clearly Putting our owned communicating product in the path digital platform claims and modernizing
Slide 7: Elevating our owned digital platform
Homepage Product Landing Page Featured Product Product Detail Page Inspire & Guide Curate & Convert Highlight & Feature Convince & Close Elevating our owned digital platform 7
Slide 8: Amplifying stress relief and sleep messaging
Amplifying stress relief and sleep messaging 8 8
Slide 9: Putting our product in the path of consumers
Putting our product in the path of consumers 9 9
Slide 10: The opportunity ahead extends well beyond these three moves
The opportunity ahead extends well beyond these three moves, with upside to how we innovate, execute, and connect with the consumer. 10
Slide 11: Clear priorities, disciplined execution, and a strong team
With clear priorities, disciplined execution, and a strong team, we are determined to return Bath & Body Works to durable revenue and profit growth. 11
Slide 12: Q2 2025 Financial Highlights
Q2 2025 FINANCIAL HIGHLIGHTS Net Sales Gross Profit Rate Net sales & adjusted earnings per diluted share at the high end of guidance. $1.5B 41.3% +1.5% LY +30 bps LY Fourth consecutive quarter of underlying sales growth. Adjusted Operating Adjusted Diluted Positive dual channel traffic, with stores
Slide 13: Strong Semi-Annual Sale
STRONG SEMI-ANNUAL Performance led by a strong semi- annual sale. SALE Put our learnings from prior sale into action: - Strategically shifted the event back two weeks. - Our stores were ready, with the right mix of product and clearly signaling the event. Built excitement across social media - Billi
Slide 14: Q2 2025 North American Category Performance
Q2 2025 NORTH AMERICAN CATEGORY PERFORMANCE BODY CARE HOME FRAGRANCE SOAPS & SANITIZERS Q2 sales down low-single Q2 sales up low-single Q2 sales up high-single digits digits digits • Performance driven by soft Mother's • Performance driven by single wick • Performance driven by growth in Day, offset
Slide 15: Collaborations & Newness in Fall
COLLABORATIONS & NEWNESS IN FALL We are excited about the fragrance experiences we will deliver to consumers this Fall DISNEY VILLIANS CERAMIC CANDLE 15
Slide 16: Customer Experience
CUSTOMER EXPERIENCE Successfully completed the roll-out of a new point-of-sale system across our store base with no customer disruption. Loyalty program driving increased spend, trip frequency, cross-channel purchases and retention. 58% of stores in off-mall locations with a target mix of 75% off-ma
Slide 17: Strong Loyalty Program
STRONG LOYALTY PROGRAM ~39M Over 80% Active1 loyalty members as of Of Q2 2025 U.S. sales the end of Q2 2025 driven by loyalty members + 5% to Q2 LY + 2 pts to Q2 LY 17 1 - Active members of our loyalty program represent loyalty program members who have purchased at least once directly from the compa
Slide 18: Q2 2025 Net Sales by Channel
Q2 2025 NET SALES BY CHANNEL 77% 17% 6% Stores – U.S. Direct – U.S. International & Canada & Canada $1.2B $267M $86M + 5% to Q2 LY - 10% to Q2 LY - 3% to Q2 LY Q2 Store sales benefitted ~2 pts Q2 Direct sales negatively impacted by ~7 pts from BOPIS International system-wide from BOPIS retail sales1
Slide 19: Q2 2025 Financial Results
Q2 2025 FINANCIAL RESULTS 1 KEY HIGHLIGHTS $ in millions, except earnings per share vs. LY GUIDANCE • Net sales of $1.5B at the high end of ACTUALS Favorable/(Unfavorable) (May 29, 20252) guidance and increased 1.5% compared Net Sales $1,549 +1.5% Flat to +2% to prior year. COGS and B&O $909 - • Fou
Slide 20: Store Count and Company-Operated Selling Square Feet
STORE COUNT AND COMPANY-OPERATED SELLING SQUARE FEET Q2 2025 vs. Q1 2025 Total Company-Operated Stores Stores Selling Sq. Ft. (000’s) Opened/ 5/3/2025 Opened Closed 8/2/2025 5/3/2025 Closed 8/2/2025 Remodels Bath & Body Works U.S. 1,787 20 (16) 1,791 5,083 49 (39) 5,094 Bath & Body Works Canada 113
Slide 21: FY 2025 Guidance
KEY HIGHLIGHTS FY 2025 GUIDANCE 1 • For the full year 2025, we are narrowing our net $ in millions, except earnings per share sales guidance to 1.5% to 2.7% growth and raising the low end of our adjusted earnings per diluted METRIC GUIDANCE GUIDANCE share guidance range from $3.25 to $3.60 to $3.35
Slide 22: Q3 2025 Guidance
Q3 2025 GUIDANCE KEY HIGHLIGHTS $ in millions, except earnings per share • We expect Q3 net sales growth of 1% to GUIDANCE 3% to prior year. METRIC (August 28, 2025) • Q3 systemwide international retail Net Sales up 1% – up 3% sales expected to be up high-single digits, with reported international G
Slide 23: Capital Allocation Highlights
CAPITAL ALLOCATION HIGHLIGHTS Q2'25 YTD FY’25 Guidance Capital Expenditures $93M $250M - $270M Dividend $85M ~$170M Payments $0.40/share dividend maintain $0.80/share annual dividend Share Repurchases $256M $400M increase from prior guidance of $300M FY '25 Free Cash Flow Guidance1 $750M - $850M 23
Slide 24: 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 Sanitizers, and Body Care1 and creating value for our customers and shareholders. STRONG FOREC
Slide 25: Q&A
Q&A 25 25
Slide 26: Appendix
APPENDIX Other financial information 26
Slide 27: Store Count and Company-Operated Selling Square Feet
STORE COUNT AND COMPANY-OPERATED SELLING SQUARE FEET Q2 2025 vs. Q4 2024 Total Company-Operated Stores Stores Selling Sq. Ft. (000’s) Opened/ 2/1/2025 Opened Closed 8/2/2025 2/1/2025 Closed 8/2/2025 Remodels Bath & Body Works U.S. 1,782 33 (24) 1,791 5,066 83 (55) 5,094 Bath & Body Works Canada 113
Slide 28: Debt Maturities
DEBT MATURITIES as of August 2, 2025 28
Slide 29: Adjusted Financial Information – Q2 2025
Adjusted Financial Information – Q2 2025 $ in millions, except per share amounts 29
Slide 30: Forecasted Adjusted Financial Information – FY 2025
Forecasted Adjusted Financial Information – FY 2025 30
Slide 31: Forecasted Free Cash Flow Information – FY 2025
Forecasted Free Cash Flow Information – FY 2025 $ in millions 31