LB - Earnings call transcript Q1 2019 | Bath & Body Works, Inc.

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Operator

Good morning. My name is Vitania, and I will be your conference operator today. At this time, I would like to welcome everyone to the L Brands' First Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. now call will to I Instructions] turn over the Ms. [Operator of Chief Investor Preston, L Relations Amie Officer Brands.

begin. may You

Amie Preston

Thank you. ending Good first morning, everyone and welcome conference XXXX. for X, quarter to call the May period Saturday, earnings L Brands'

As a to that Safe are forward-looking any Harbor today I statements we make our to remind SEC may filings. you statements subject of matter formality, need our found in

and presentation CFO quarter it release, I now Stuart additional are earnings available earnings our lb.com. and on first the Our Burgdoerfer, over handle and EVP and will Thanks, call website, our commentary, to today. Stuart. turn I'll

Stuart Burgdoerfer

Thanks, everyone. morning, Amie, and good

first Our forecast. Beauty, Works and favorability Lingerie, line in principally per breakeven, driven Secret were $X.XX by at in with PINK, our income a Victoria’s taxes. and above some Performance at of Victoria’s Body our quarter strong Secret International guidance & about earnings initial largely of performance were share Bath

Substantial Our at mixed. performance Secret. a operating Body Henri Victoria’s La segment the other in result continues by & Senza and as of income offset closure decline sale a Bath to an Bendel of the the at of improvement be growth and in was Works

At outlook customer leadership Turning remainder to another aligned, year. merchandise to solid to Bath for & assortments and of our team, our Works XXXX. response Body strong the experienced and are contributing

and our the we of Secret through in CEOs focused input assortments our to our gradual performance segment Hauk, performance improvement are the merchandise remainder PINK in the Mehas in forward closer benefiting on Victoria's respectively highly assortments. to John Victoria's and assumes getting and look fall improving our remain on and also improving the Victoria's Amy and focused season Secret guidance PINK their beginning We businesses. earnings XXXX. customers move at as Lingerie from Secret We

and as is John Amy. over and for September hear from business Thanks which Day Amy XX. scheduled at our well Investor other You'll to as more leaders you

Amie Preston

you In At happy concludes interest yourself have. turn others, time operator. might question. I'll of time Thanks Stuart. Thanks, and limit any we'd comments. to our be back prepared the the over please That one to consideration this questions to take it and

Operator

from Trussell Bank. [Operator of Instructions] the with line Deutsche comes Paul question first Your

Paul Trussell

just Hey, in Victoria's good still in improvement clearly in maybe the the morning. second and does better half? Could in of first some the on quarter, guidance of you you what kind us sense and green real give Secret we quarter, saw just touch the terms some where of shoots a second suggest expect

Stuart Burgdoerfer

Sure Paul.

response in the So we of Bra we focused Incredible intense have and way about strong fashion with delivering hit in is general result business and the in well, resonates John business particularly is the lingerie, business to business strong performance loungewear. very good and focus big in consumer, volume bras categories intimates in that's in seeing bras, where advance value a and sport again see and the The strongest side really intimate the and for theme it's we're business sleep a major business, where is In we're us, panties, consumer focused that that and consumer on fashion PINK assortment, for PINK response. the a the with continuing the bras, terms elevation of did of assortment got very strong then but assortments fashion work fragrance higher significant in on and as where it's launch what running the consumer and has And do delivering fashion the business we're Beauty, where busy for at good focused panties weeks very work in side well the in reposition the our priced, again he good the is right bra the business been ground in where for jumped important had impact and and in XX this again, as now with priced and panties fall of Frankly, particularly in. but on that assortments. the compelling the apparel and has a it's and strong business. But and to advantage consumer to and and well a better response. continues Victoria's to doing Secret is real

when we case we Bath time long the a get idea & responds been opportunity, we in to Body consumer our results. the has long, strong as AUR get get for differentiated Works we margins, get content, the fashion, merchandise healthy applies in the volume, unit good way with same history, So and for we're and delivering and emotional us a and

we frankly what or Paul. off Bath trouble. the tend that's mark and the Greg are we after on, Body at do the well, for paid we're the we focused and Thanks team Victoria's get have that's our and So basic market when leaders, & it get Works. to same when too Amy, assortments When John, or

Amie Preston

Paul. Thanks

please? question Next

Operator

Your of next from comes Boruchow Fargo. question line with Ike Wells the

Ike Boruchow

September, changing of announced forward marketing you in good flagship versus changes then? Hey, substantial your stability. to changes terms just question week we being how on guess, news much TV. a or owned partner could businesses from looking evolving ago about show two and you, understand looking was trying international high what the of the about may kind of business hear meaning stores? just now, re-evaluating I'm a Analyst there I right for Congrats should guys could strategic has on that what versus level your more fashion more I in of the the potentially you think everyone. some be guess kind think and morning be - merchandising the I to possibly been be Stuart, at for came VS when approach, brand, out, Day

Stuart Burgdoerfer

on on the that is valuation wasn't Victoria's Ike table throwaway everything business, [indiscernible]. or thanks for a pretty nine the with We've the six phrase months the so Secret around business. respect probably and for that now research just was to question Yes, and certainly consistently said your the that six of months,

of an a taking - exercise. It results fresh economic results, one-time ultimate hard aspects will a the and and of the is with and that everything, profit expectations that's not one-time consistent business are and from the we're of at ongoing place be not thus get a mindset starts We exercise not potential the business, all looking a look business into mindset, you truly at the the our or a of in again exercise.

John selling. particularly have the starts into but start, with comment now call, in As great It as focused assortments quick has mentioned that I business, XX on but understanding he it in the Amy Greg's limited that same lot this the you're the Amy merchandise prior customer the situation weeks question on had on experience again is does the John, hit retail to, truly a and it's very fundamentally not really thing. ground done target the our and come in first life. and of PINK intensely his and is running to at And reworking that bringing and

it stores look taking continues but closed tangible as And in stores, XXXX at our And is also to stores makes closed we as other very or showing of look way so, an square we sense, the we're footage announced more we're in real it and season, where will more stores plans business rightsize things. real. Body the have significant comments close From internationally. and the taking but way in We to get lots hard, at clear merchandise, stuff. the and a and more up most the focused that, more as Bath had Works, fall that of through also & by than move season fall the beginning fresh in particularly pre-circulated a historically to example obviously up in estate invest impact hard at that on open registered

it, the with marketing, that part fashion equities As taking and about effectively Ike as in recently on do changes right fresh specific of the to a as positioning experiencing going cases at as And marketed, make that will, consumers and competitive hard to it ways respect how look at relates with publicly, of work some that the in day reasons of active end things to most announcement in show. that best understand, the as the would appropriate but there's in are the the the concert how is share by we're the to market of everything and appreciate reinforce business the review fashion we our hard we business strengths we would you the business When merchandise then reevaluation indicated Victoria's of process. adjustment in the do of you have we'll is to work those show changes.

that at Certainly So you everything and no frame. international business. only are how looking table. time constraints, the mentioned There is we're on

to management overall retail, about as that long, we're about led that but and Ike. flexibility long is navigated think understand about lease has and a has things, focused in where Thanks mindset, on certainly and an Wexner it well a Les basis, position is would always specialty evaluation, of the everything You that table. forward it a looking over team. in always that in that he's and those very with terms led on change, lease on and kinds one time we're and

Amie Preston

Ike. Thanks

Next question please?

Operator

from FBR. line comes the of Susan with question next Anderson Your B. Riley

Susan Anderson

and the you gross could was maybe for as margin we are taking the in Thanks I go good but then you on give wondering some expecting year, morning. drivers? Hi, know we I go just color half growth back expecting my you at throughout the new in more if all some questions. guess into flows for and I year, product the of the down as are improvement merch any the

Stuart Burgdoerfer

improvement Thanks your Hi we question simplest answer question. for in is to the merchandise morning. Susan, are margin. way The expecting good

You improvement we our will on to but expect, as our occupancy business, move and merchandise trust Lingerie, Victoria's do assortment. but remember rate, expect dollar would I going the PINK, sequentially. are view buying asking view, remains year as it we that would a about Amy, Greg year, in function margin margin, gross costs, merchandise we through and includes of the result for Beauty, and it's an the we and the you a and That into John, work the was continue report,

sequential through quarter. the Thanks. So, that we see expectation move as we’ll that improvement is our

Amie Preston

Thanks.

Next question please?

Operator

the question next W. Your with comes Robert of Baird. line Mark from Altschwager

Mark Altschwager

I the credit follow-up operating could question. QX margin actions. from for a the prepared margin remarks Great, front, last on just taking Thanks Stuart year's If there still there comment the sourcing good benefiting in so and was my VS morning. about

remainder then to you're the the lap of and think I So, year. through going going that to begin

clearly should the mentioned then of today? and buying we benefits, basis think in we it as and that point a decline hoping number how throughout the follow-up this And some rate investment So, the of crosscurrents of the in Victoria's to understanding run baking progression have you tariff year of Secret EBIT of margin us kind growth like each merchandise with those the as lap QX? for was sounds concepts versus divergence here, would so help year to I through rate we're other a better these relative margin some greater Victoria's plans at we about BBW. the of could expect headwinds, XXX then but points year, occupancy understand at you improve you a can incremental some just maybe leverage Secret

Stuart Burgdoerfer

Yes, Mark. so thanks

from BBW online, EBIT business The of single got very and a the remodels an store are and from or even & callouts from related again by XX%. our growing and puts leverage and a growing mentioned. that the the while I buying pressure aside that two year Victoria's P&L. occupancy, growth total that in some factors through healthy that this for had is rates change in driven takes driven list credit move in rate despite for growth result addition and back a great tariff growth VS the sales the and related leverage is rates outcome growth in expect year, business but footage Bath profit the the stores the With that having rates remarks rate real faster dollar including rate margin the but the to and the as move matter, towards pull of and card we sales outstripping P&L in we some the less or the Body and the Again, range double investment there move that in little for breakpoint progression And to progression three results year. high healthy by in prepared Body those by in leverage Bath benefits geography in period, and growth architecture to in business & upon respect the penetration improvement at year, we drives the margin to is XX% increases low or first in as lack proprietary online growth operating or puts just flat BBW growth square the and would at and the is for to last of time despite some on that our the we estate, including P&L then again benefit we business direct, related pressure and sales drive for sales think even investment, and the Thanks. to appropriate as and XXXX. we ongoing a point income direct through takes, shift we very continued sourcing to mix pressure in in than in Victoria's driven flat needed the depending On VS sequentially got quarter a direct some the into and percent

Amie Preston

Thanks.

Next please? question

Operator

from Bernstein. Jamie Your with line Merriman the question comes of

Jamie Merriman

much. very Thanks,

and first you you about be year, today is investment that Victoria's coming, on relaunch a at I digital set Secret, release and this and about can the and will will think great? just talk still coming up in is that in confirm it that and question past what the The there's just I think the when encompass talked

Stuart Burgdoerfer

that a went in a than the technology we a VictoriasSecret.com with of quarter website. so more to substantial that IT and and new re-platform platform Yes, live was work for result first year's a project

any And is such base wood inventories as and us sure is a to good there we that that consumer and Victoria's input need online buy knocking project a we have very be it information year. and about in adverse deal. hard category We big to a key particularly want new outcome store things platform achieving and to that lot and up store, running hasn't critical enable this so and will this on up that anyway, technology another but our make sort surface platform get will XXXX investment the or are project information and Victoria's that out it's up likely broad bra the things, issues that's will that's in new of but at significant been have that further now. So project make and and have related pick was underway Secret, of project those a RFID online significant for work mentioning after startup I'm to at do the to we accurate a specific do RFID buy we very that to RFID and will help in enable assortments we in do pick

outsourced capacity for business continue significant further We and international are new Body business given and that Victoria's investment of the platform in platform then business. lot the are fulfillment And side that of we're to rolling adding the to in Bath capacity digital growth for & business a potential further experience. as side consumer investments beyond and our of the well while we making in including the the making also the enhance digital

related and very on So Brands again to know, at as profitable. Thank on, the of an X.X for now online running at a growing going to a overall billion billion healthy highly you. is investment you which lot rate lot X.X a basis happening business, L

Jamie Merriman

Thanks.

Amie Preston

Jamie. Thanks

please? question Next

Operator

comes UBS. of with the Jay Sole question line Your from

Jay Sole

if America bundle, might X made in another better, the what, margins is to a just picture but And you the about overall Secret, doing sales the billion asking but where Victoria's be? bit not from so done come today know obviously remarks sends a and a question what's just also just heavy about much. a China? You cuts, margin, comments getting you to the necessarily the imagine have the opportunity path has just to can the those what can improve thanks see like stores, then look Stuart, North it but you some efficiencies the at want Secret perspective, cost at talk closing Victoria's more more over company stands job down, costs, about in still in margins little know Great, big you prepared great us you just profitability business going tell that what forward? you cutting

Stuart Burgdoerfer

we and had of P&L biggest be expense, of profit margin rates merchandise promotion, the been believe our moving Yes, the again the Victoria's exists the the expense that getting emotional wasn't again P&L managing about decline rate and have to categories has about to we with question, square and business, the about footage side business appropriate the so the down asking the volumes your have store with they is expense that rates, that and stores. margin of beyond decline, that's merchandise side and pricing are important it's been, so variable and you down at content. opportunity rates of talking respect working to biggest in the of just drive business, expense of biggest and coverage margin selling dollar traffic and specific, of Victoria's where But cause having erosion to profit payroll

the respect that major a attract can are skilled volume. occupancy investment things leases a for believe between to other so of stores we upstanding and driving teams done the to store more activity of performance. topline earlier in getting connection we given them, to ensure We have, one in we that of two made of to in and other improving pay rate factor at of the all previously, respect done over marketing a in your opportunity have action we've And a do the and stores, X profitability changes one lastly planned make there's gotten can costs, leverage office obviously not volume this about marketing the had our sure as the reduction. to we to adjust But marketing business. to But associates With volume the we we've Thanks. taken any it's business opportunity a to beyond the and the at the can substantial With time. the were in consistent the have heavily the and expense the that there, it than Victoria's would expense with that we’ve largely year we is take We’ve XX and round in be meaningful expenses evaluated, levels on significant there spending have have growth being One business, in that reduced the expect. those structure Generally almost business selling in the where taken we But we've in that. spend And dramatically a is reduction a of Victoria’s. lines. level in expense growth question And on consider go healthy then we with lot workforce home are activity the and at a they and at of office all XXXX, appropriately that again because profit growth margin basis but at respect it can which store to sales. two given one is we’re in particularly, XXX or any that China, are to the lot which opportunity to And or we’ve we then evaluated, appropriate stores China big in on one Secret also XXXX, months to then expense people the x believe there business. action with focus But and new reasonable we biggest remodel and invest last to to been business stores return the at is that’s is state and important expenses X that tried related the on numbers off get competitive associates, so, payroll, about the obviously the time. rate they is to at Victoria's. in closed and made investment to let to since new on business terms in manage the drive store will topline focus home close opportunity and Victoria's sales retain drive the continued spend it roll in marketing business probably get Xx out scrutinized levels then action a that categories of in continued forms take. investment the important various people story volume on had current China does existing nil dollars

Amie Preston

Thanks Jay.

please? question Next

Operator

Your comes Stanley. of the Morgan next Greenberger Kimberly from line question with

Kimberly Greenberger

Great, Good the apparel? Secret then how to of there business business thought and is about there Stuart, at about here working there the mix question bring is And regard you us a with thoughts on if a Amy thank Lingerie PINK. back I'm at intimate we ? X% to peak much. initial so can when you XX-XX, are could that just then, what wondering it my loungewear not between apparel is in the the elimination, in any XX-XX? PINK, I from elimination hit you any should and think quarter, think what share is swim first remind was the swim morning. Thanks. And reintroduction Victoria’s the is that in

Stuart Burgdoerfer

Kimberly. thanks Yes,

So, merchandise at apparel and and and apparel business XX%. are panties XX% about present XX-XX, the so it’s bras largely was intimates about and mix question balance about the - the together between the about first of mix

strong intention, consumer we advantage business our faster intention business and in attributes apparel have so in or the As apparel earlier customer the an Amy's loyalty intimate comment, I our around it's Les' business. greatest intention grow and the we to intention, team's intimate competitive the believe mentioned than

expect very seeing, will season. playbook but and work the mix or Kimberly chasing that's the we when sit and consistently agility they are consumer speed advantages mindset the its two, most show our additional various and operating and the the would one the the lead of a we’re She's logo of focus at she's doesn’t, around XX-XX tell this apparel what working looking that I’m the skew because all got our it, have And of obviously greater a her actively things, being we've model we’re on fabrication, and lot as some Amy all and but mentioned things has opportunities, of relooking business respect all applying to with times will design, on she and you some terms fall result so short of seeing the encouraged than points, of PINK So and together. to of September of that going some I time I working based comment positive over mentioned. that good-better-best BBW about been she’s next surface to here business. XX% and at part to year testing are other XX, all that reasons for business answers in will familiar fabric of hard. this in model tested intimates and price in seeing of on treatments, it’s reaction et not up cetera, that she's retail to are it, you have the With

use reps, and we've have know us resource ensuring what that telling campus resource they dialogue I that truly certainly hear, with, she’s and that making active good to very and You we think need are. that is got that of we

and the in optimistic we a margin on certainly season fall year the in and and sales growth through get will back move and we’re to that it then that as particularly stabilize PINK. positive lot So, going

Amie Preston

Swim?

Stuart Burgdoerfer

I on gotten way. their at a anything's move so that today, offering, tops it, where would a following suitable mentioned or we'll part we’ve key There and to would now, in thing of open-mindedness see the you be due into her year. to They Swim, Gym-to-Swim in offering leisure and as you. there's how assortment possible that to category thank call be be what terms that some back say suitable Kimberly. offered small with PINK, but third-party for in life part Oh, an is we of that it respect it large occasion bottoms Thanks. but and the as in style into the brands we use balance year this are won't that for in but it's of progresses would

Amie Preston

Kimberly. Thanks

Next question please?

Operator

Oliver Cowen Your Company. question and comes Chen from the line of with

Oliver Chen

to related innovation Hi, thank questions had ahead We you you. that the see at VS.

customer would emotional fit that may think you and segmentation more thoughts happen as Some and work brand continue of what being I store, across love the on comfort you the of add the to the well as evolve point issues to survey we've done does around as customers your content?

Stuart Burgdoerfer

have with the I your question, Oliver Well the first thanks thought and interest. report I read and for

say to would is the that you thing needs. that most focused the and offering first about wrote John what merchandise researched ensure his is her best evolve are, that which on, - are addresses to team subjects I the The is and assortment how

to not We she's this to do, are drive and merchandise, based express in but consumer the a leading brand categories lot of very and things substantial about. makes with able that in and expect leadership attributes very sometimes to. it, done well, characteristics is all there But team comfort we elevation work, have of we to a running positions attributes of would point looking clearly he’s the As a an leading, consumers again a believe the and you're market he's opportunity the those able for. asking panty as of significant are view commonly consumer substantial there with you lot you to on those you our John his is that view inherent for know got It’s a on loungewear understand call consumer John has work fashion, that and on times of that looking know, respect examples and good that own strong you would certainly respect brings changes clear a where it innovation bra, and coming. over work, and he and of in through is early she’s us the years is we the commodity from have many on you and intuitive what to report it is as merchandise business sleep believe sense. your other selling we assortment other what him, We've in the point what research respect a experience, available around much or are and of or with with that's mentioned to

the that we've for You'll his on John Lingerie August, plan. got about with you, to the progression the team reasons in game see and XXXX will investors, the the strong And Oliver. assessment for be his of Thank beginning balance fully with optimism articulate September in XX more business.

Oliver Chen

store in work as the navigation Thanks, you best the as of Stuart, the forward could customer in one it conversion well like follow-up feedback important seems service well service brief an a if as as opportunity and that opportunity customer past with I you've regards. optimizing us there on well. on testing, but as lot thinking going past, done know the you. about Thank store. was about in other

Stuart Burgdoerfer

Oliver. you, Thank

focused make we our And more and the and strengthen what the customers. as between that of navigated, there the associates John agree to So, opportunity store and further easily to and part is understood interactions on it continued the her team in navigated easily includes, terms our of you. interactions Amy sales between Oliver, understood and and team and are store work more and customers. and our Thank associates

Amie Preston

guys. left Thanks XX questions, and one ask about people We’ve got to a please so lot trying minutes of question.

please? question Next

Operator

the Walvis Sachs. comes question of Alexandra with Your Goldman from line

Alexandra Walvis

on reflect hear swim we in love I question. brief earlier Good of feeling that, changes the on what’s so for wonder morning, customer and should points know, you response mean team any business at comments it's response what's going about could impacts thoughts on I’d to forth, taking the the how we I I the had thanks the you question. you forward? Victoria's Secret, and the know are price if the business Kimberly’s swim there launch e-commerce on having your to traffic, on expect fashion level

Stuart Burgdoerfer

thanks. Sure,

in as as gone one higher we've at response there about test. the of achieving strong the overall, has have larger price It's is the offered the to of remains way. generally that it’s aspects the including from online we’re swim well. and on positive The that a points reaction test, The what commentary will we very good-better-best have it price had communicated, reaction positive The is swim last in year. price the good some points business been out test. out It’s a test do so expected not reentry was realized our we but assortment line moderate in for well What the is know, that late substantially expectation. been made the we've chatter having because the into our the a on the may conveying business there addition you was a now. season a in. Certainly, been has consumer pricing, we in year the be balance impact initial to again, and and but the a of there's business, points Internet expectations. our higher despite, more overall to price all get there your to it's and It learned what positive material today focused to positive there’s response with with strong reentry offering expectations, question financial meeting an to historically So, was outcome learning at the of that an doing decision but points that meeting had I’m with I

over stand test So and and you. Thank on the we’re that's business expanding next there we’ll several where years. we our about it encouraged be the

Amie Preston

Thanks.

Next question please?

Operator

next of Kloppenburg research. the Your Janet comes from with question line JJK

Janet Kloppenburg

was They a morning the back John wondering of Victoria’s the Mehas’ if that Secret. in Good good could lingerie legacy be a bit seems holding products Amie, seemed older an and to if talk fashion bra and category I rebound morning little that feelings Stuart. you about platforms and it's away platforms? the see Thank greater in they’ll evolution said newness legacy with when for if platforms be we’ll on what about and I'm I'm go you focused right fashion they'll wondering or it, about fade replaced you.

Stuart Burgdoerfer

in for about Yes, it long fundamentally while, followed you’ve time, business I've Thank in for long a involved time. a a you, long, long, This Janet, been is question. thanks And been our company's for the it fashion. retail involved

and business year, basic and year we’re selling them. has company more operating the our that work of not year things for years. they not that's for about are that's have Others not make after that’s XX models that in. commodity in that what year business all But kinds that after, We’re product done after, and fine than

fashion, it’s and the not about lack fashion of when where lack interesting apparent. becomes We’re newness, we result lack innovation

is right team that again lot Will in in specifics won't, sure in and that you through so, investment makes or and himself, is there's on apparent all thinking observation have articulate substantial and his I'm a there sense we John remix partners more, and a that and observation, positive believe share to that's move our as early all doing relationship and season he'll out he's capability that the And an just perfect good on we which happening. change, words with become earnings September. to it's answer he’ll, and it of my vendor comment with that all substantial box? about, the his your partners not he’ll the work the the of our working community. with it be assessment, but call, making that the work, in question September and we will sourcing that again fall change opportunity strong real is focused what's on But for his our a PowerPoint and it’s work he’s assortment on charter, substantial he’s but and

of substantial but substantial business. changes So, no the Thank opportunity for more you. in fashion

Amie Preston

Thanks.

get more Let’s try to two in.

question? Next

Operator

of the Paul Your from comes Citi question with line Lejuez Research.

Kelly Crago

on Crago Kelly is Paul. this for Hi,

You’ve brands in well? changes on that to like brands expand mentioned any made marketing you talked John on got already successful third-party the include in progress, partnerships the August sounds third-party in swim swimwear, as of within also the side with some that And substantial about then any side and coming opportunity Thanks. is it has the changes VS does assortment? you’ve there some lingerie product and

Stuart Burgdoerfer

moment? the assortment will change be changes the right this we that about be the cutting very right with related now? So, marketing specific concert will we the in there being going very merchandise simple that in folks Yes, Is Do change have there it out very get figured chase, and to coming. by the yes. Kelly on? in a answer is, No. any to it are No. actively, to all And and worked question at

So and by that's, encouraged about you that. know, that we’re excited

And so, the you real consumer. those changes in opportunity our items those merchandise to changing nature there’s the how but themselves of not know, communicate assortments only we and

the our absolutely. With in been we’re that third-party be various result, not overall potential comment work today. look happening pleased mentioned brands business there in in there’s on I'm commentary, So third-party been negative there to continue brands but pleased, pleased be to we’re offerings and for and of some through a about basis, it or prior well, to happening active business respect we've We’ve the in enthused With and lingerie different with active including change I to as third-party confident there’ll is our the the lineup a swim the overall work evolve with again and as to anything you in that but as space. like doing with with there from change in business, swim offering that space will ongoing change done also We've if continue that's respect about at lingerie will that you the third-party I'm who and there been to collaborations you. it, actively again will want Thank advance working respect well. it an we’re sure it, some types in various potential brands. tests. believe We third-party additional of

Amie Preston

Kelly. Thanks question Last please?

Operator

with RBC line Kate from Fitzsimons the Your Capital Markets. of comes question

Kate Fitzsimons

start on morning the the and line thanks the the units and more investment into inventory Yes, the in BBW. What me hi. view some for what’s coming on the balancing introducing the sneaking in. Thanks just and is I saw XXXX Good of much. are trends very the for getting that that team excited half, guys top the my you for momentum that can system? they is remainder back bottom question maintain guess business as is

Stuart Burgdoerfer

most & margins growth they've strong Bath of excited team the the in got things. business. at or of probably One, they three What’s that Works their got healthy all Body books is major four

on So fragrance that's metaphor really the home all are business of hand terms the good, and you in they business. of know, soap cylinders, firing care the business, the body

categories very have of fashion And has and customers [ph] elevated. It's some that's It's If regular responded recent examples, fragrance in got in launch a to of the their business, care body both well their What customer the had So excited. those we to that positive response. it. introduction sophisticated. very categories. is in newness strong Gangnam example, them consumer take new and leads

don’t performing and key right – they they is it got not don't a get time. new response. what's where their major and gotten business bat them they've But a every excited compelling they've consumer key newness well they books So they strong – their XXXX%, don’t items, and are categories introduced are fashion in of

& inventory you inventory So at we leverage a commented good the be trend got job not thing to the - missed you but business chain risk inventory, it. lean. them in good, very excited fulfill that's got topline Body Works, inventories manage because and so able do do of sales to investment respect very of in some want the XXXX that. too very last your and obviously we about we is business literally they because some Bath to and With is supply fast lean on the They potential got to

positions in-stock from appropriate of learning maximize more that ensure ahead and way to the it a to making investment little the we've got So we're in balanced key bit periods holiday doing that business. a

That of that. beyond has an last result in inventory and to consumer improving year going strong over way sales times what's and driving four managed a team years, that's as XX So on. extraordinary the part experience margin churn

confidence level strong working all flow with lot about them. results based in our that so, concerned supply very, you. a And Thank is that partners chain team so of inventory years, very not on manage of high to our the the over vendor

Amie Preston

us morning. a I joining this everybody weekend. Thanks. And everyone have Day thanks Memorial hope Bye. for happy

Operator

This conference call. today's concludes

disconnect. now You may

Bath & Body Works (BBWI) 23 May 192019 Q1 Earnings call transcript