Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — Q3 2025 Earnings Presentation
31 slides from Bath & Body Works's earnings presentation, Nov 20, 2025
Slide 1: Q3 2025 Earnings & 2025 Guidance
Bath & Body Works: Q3 2025 Earnings & 2025 Guidance November 20, 2025
Slide 2: Q3 Earnings Call Participants
Q8 Earnings Call Participants Daniel Heaf Eva Boratto Luke Long Chief Executive Officer Chief Financial Officer VP Strategy & Investor Relations Bath & Body Works»
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 presentation or made by our Company or our ma
Slide 4: Confidence & Foundational Strengths
Confidence & Foundational Strengths o Weare a market leader in attractive, growing consumer categories. o Iconic brand — with a vault of beloved fragrance franchises. o Operate +2,400 stores worldwide and employ exceptional associates. o Large loyalty base and a fast, largely domestic supply chain.
Slide 5: Diagnosis
Diagnosis Reduced Focus on the Core: Innovation was focused on new product adjacencies, and we reduced focus in investing in our core categories. Collaboration Strategy: Collaborations that should be used to drive excitement, energy and equity into the brand, have been used to carry quarters. Unsust
Slide 6: The First Formula
The eek First f Formula: Create Disruptivesé Reignite Win in the Innovative Prot the Brand Marketplace 60 SEfficiency Invest in marketin Expand access and ease fe} Bfership i in our (influencers, store visuals, | _ of discovery through ories: body product franchises,sbi al adidigital { jome fragranc
Slide 7: Create Disruptive & Innovative Products
Create Disruptive & Innovative Products 4 Bath & Body Works:
Slide 8: Consumer Muses
Slide 9: Bath & Body Works Covered in Rose
BATH & BODY WORKS COVERED IN RO § E'S
Slide 10: Reignite the Brand
Reignite'the
Slide 11: Destination: All the Gold
shop ontrs Mew cits Bath& Body Works Search aa Pick up in store { | Destination: all the gold saving glitz and glam of tae season Golden orange blossom Bright blackberries Decadent tonka Warm. Fruity. Floral. Make everything you touch turn to gold
Slide 12: Win in the Marketplace
Win in the Marketplace > f =.
Slide 13: Efficiency
bd 18 Efficiency
Slide 14: Leadership
Bath & Body Works: Leadership A transformational plan requires transformational leadership. We are putting the right leaders in the right roles with clear accountability. Veronique Gabai Maly Bemsiein Creative Product & Brand Advisor Chief Commercial Officer 14
Slide 15: Q3 2025 Financial Highlights
Q8 2025 Financial Highlights Net Sales $1.6B (1%) LY Operating Income Adjusted Diluted EPS! P6IM -*0.35 (26%) LY (29%) to LY ‘See Appendix for important information regarding the non-GAAP financial measures, including reconciliations of reported to-adjusted results, Bath & Body Works: Net sales & ad
Slide 16: Q3 Sales by Category
“| HOMEFRAGRANCE , SOAS ApANTIAS : = Q3 sales. down + QS sales dowh =, ! low-single digits” po Son sreig | use ieee tide ~ X 4 re, > 6 arte * gs 8 eet
Slide 17: Q3 2025 Net Sales By Channel
QB 2025 Net Sales By Channel | 19% A% Direct - U.S. Intemational & Canada $1.2B $299M $73M Flat to LY - 7% to lY +6% to LY Q$% Stores sales benefited by ~2pts QS Direct sales negatively impacted by ~6 pts from BOPIS. International system-wide retail from BOPIS. Bath & Body Works sales! up 16% in the
Slide 18: Q3 2025 Financial Results
Q3 2025 Fin in millions, except earnings per share ancial Results! GUIDANCE Favorable/(Unfavorable) Net Sales $1,594 (1.0%) 41% - +3% COGS and B&O $936 = Gross Profit $658 (6.0%) Gross Profit Rate 41.3% (220 bps) ~42,2% SG&A $497 (3.2%) SG&A Rate 31.2% (120 bps) ~31.5% Operating Income $161 (26.1%)
Slide 19: Store Count And Company-Operated Selling Square Feet
Store Count And Company-Operated Selling Square Feet Q8 2025 vs. Q2 2025 Total Company-Operated Stores Stores Selling Sq. Ft. (000’s) 8/2/2025 Opened Closed 11/1/2025 8/2/2025 ey Closed 11/1/2025 Remodels Bath & Body Works U.S. 4,791 40 (10) 1,821 5,094 401 (22) 5,172 Bath & Body Works Canada 113 -
Slide 20: Q4 Guidance
Key Highlights Q4 20 25 G U | d ance We expect Q4 sales of down high-single digits. in millions, except eamings per share © Very challenging start to holiday season, beginning in late Q3. Macro consumer sentiment is weighing heavily on our consumers' purchase GAS eee ane intent. (Novem bese) Early i
Slide 21: FY 2025 Guidance
FY 2025 Guidance! In millions, except earnings per share Nec cop Net Sales. Down low-single digits up 1.5% - up 2.7% Gross Profit Rate ~43.3% ~44% Adjusted SG&A Expense Rate’ ~28.3% ~27.7% Adjusted Interest Expense & Other! ~$250 ~$250 Adjusted Tax Rate! ~26.2% ~26% Weighted Average Diluted Shares O
Slide 22: Capital Allocation Highlights
Capital Allocation Highlights Capital Expenditures $174M ~$240M Dividend $126M ~$170M Paym ents $0.60/share dividend maintain $0.80/share annual dividend Share Repurchases $343M $400M FY '25 Free Cash Flow Guidance’ ~$650M Bath & Body Works" 1 - See Appendix for important information
Slide 23: Strong Leader in Healthy Attractive Space with Strong Margins
STRONG LEADER IN HEALTHY ATTRACTIVE SPACE MARGINS BUSINESS MOD EL Market leader in each of our 3 ~17% Operating Margins? core categories: Home We are laser focused Fragrance, Soaps & . ; Sanitizers, and Body Care’ on returning the business to consistent and sustainable growth and creating value for
Slide 24: “ ‘hall i |
D “ ‘hall i | — CRISP MORNING AIR GENTLE & CLEAN FOAMING HAND SOAP CLEANSING GEL HAND SCAP. , 2 S =3 = g 2K oe is 2 5 3 36 aS & Ear 40 KITCHEN WHITE BARN 2 e 2 LEMON MAHOGANY TEAKWOOD CLEANSING GEL HAND SOAP GENTLE & CLEAN MaDe WaTHOUT FOAMING HAND SOAP SULFATES, PARABENS & DYES west /ZOUsLe SUIRATE
Slide 25: Appendix: Other financial information
Slide 26: Strong Loyalty Program
Bath orl Strong Loyalty Program ‘11's BACK! fe) I ES I ~40M ~85% fon Join us for a fall festival Active" loyalty Of Q3 2025 U.S. sales cece cal members as of the end driven by loyalty of QS 2026 members GUESS THE DETAILS WE'RE CARVING OUT.. +6% to Q3 LY + 4 pts to Q3 LY Bath & Body Works » 1- Active
Slide 27: Store Count And Company-Operated Selling Square Feet
Store Count And Company-Operated Selling Square Feet Q3 2025 vs. Q4 2024 Total Company-Operated Stores Stores Selling Sq. Ft. (000’s) 2/1/2025 Opened Closed 11/1/2025 2/1/2025 Opened/ Closed 11/1/2025 Remodels Bath & Body Works U.S. 1,782 73 (34) 1,821 5,066 184 (77) 5,172 Bath & Body Works Canada 1
Slide 28: Debt Maturities
Debt Maturities as of November 1, 2025 $'s in $1,000 $900 $800 $700 $600 $500 $844 $400 $444 $482 $200 $284 = ¥ $0 6.694% [i 5.250% I 7.500% 9% 6.625% 2025 2026 ©2027"” 2028 2029 2030 2031 ‘ The 2027 Notes mature on 1/15/27, which falls in fiscal year 2026. Bath & Body Works” 2032 $802 $575 $284 $20
Slide 29: Adjusted Financial Information — Q3 2025
Adjusted Financial Information — Q3 2025 $ in millions, except per share amounts Q3 2025 Reconciliation of Reported Interest Expense & Other to Adjusted Interest Expense & Other $ Reported Interest Expense & Other Gain on Sale of Non-core Asset Adjusted Interest Expense & Other Reconciliation of Rep
Slide 30: Forecasted Adjusted Financial Information — FY 2025
Forecasted Adjusted Financial Information — FY 2025 $in millions, except share amounts Bath & Body Works” Full-Year 2025 Reconciliation of Forecasted SG&A Expense Rate to Forecasted Adjusted SG&A Expense Rate Forecasted SG&A Expense Rate 28.8% SG&A Expense Rate Impact of Leadership Transition Costs
Slide 31: Forecasted Free Cash Flow Information — FY 2025
Forecasted Free Cash Flow Information — FY 2025 $ in millions Full-Year 2025 Reconciliation of Forecasted Net Cash Provided by Operating Activities to Forecasted Free Cash Flow Forecasted Net Cash Provided by Operating Activities $890 Forecasted Capital Expenditures (240) Forecasted Free Cash Flow $