BBWI - Earnings call transcript Q3 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Melissa, and I will be your conference call operator today. At this time, I would like to welcome everyone to Bath & Body Works Third Quarter 2024 Earnings Conference Call. Please be advised that today's conference is being recorded. [Operator Instructions] I will now turn the call over to Luke Long, Vice President of Investor Relations. begin. may you Luke,

Luke Long

welcome Conference & Call. and Quarter Works XXXX Earnings to morning, Body Bath Third Good

Financial Joining Gina Officer; Chief Boswell, on Chief me the Executive and call Eva today are Officer. Boratto,

operating and some this addition posted slide figures related remarks information facts on presentation in this the our In website summarizes these morning's and a that to performance our in release, we press addition and have guidance. call prepared to regarding providing

forward-looking of As to comments the statements a include related events may some expectations. and reminder, future today

factors actual filed report Body For & please results differ Form on week. materially the press that this this release as will quarterly Bath to in Works statements, XX-Q, which forward-looking XXXX to Risk could cause Factors well as Form the from XX-K be refer morning's our these and

call certain Today's Fiscal important reconciliations this financial comparable Please morning's materials refer regarding GAAP release measures. to such to financial for XX-week and year. measures, was including a supplemental most disclosures contains press non-GAAP the XXXX also measure.

which ended best data, versus understanding share category XXXX, the the the X, results, turn a all reported sales of are versus discussed discussed calendar X, business, to I'll the basis, October weeks XX weeks XXXX, weeks XXXX. With weeks the XXXX. the over a that, market on comparable basis, November ended the XX results are Gina. which selling XX XX on call November All other metrics year-to-date during November ended and is XX, call loyalty X, the provide metrics is To ended

Gina Boswell

strategic are $X.XX. of customer Net we're and and strong Then we're to We reflect detail. We per Eva diluted more start in walk us. our a prior appreciate We results, were year observing, guidance billion, the share and our we've delivered including everyone. will growth year priorities. guidance with to the the morning, bottom joining behavior our good on and earnings versus quarter both Luke, X% $X.X and the a full drive progress sales top against fully review quarter. raising beat we high-level third outperformance. you, made were our through I'll financials up our this line, the taking actions Thank you

is spent time over I've storytelling. and our that floor months, with sets are store seen in our of always great along meet associates' of strength ability retail arranged a merchandise I've past reminder enables needs it. seasonal our responding unique team beautifully lot few the our stores and how to the to the of our customers' firsthand our and positively customers a Witnessing experience

products with execution Our and conversion continued of our the drove compelling for our strong value product innovation, positive coupled store and generation, quarter. demand traffic improved the team's

body of has categories, care, maintained overall store track. during adjusted Our fragrance third-party low each sanitizers we year-over-year. our soaps leading benchmarks exceeded Each share. our XXXX. for and sequentially market the home sales performance results, with year-to-date, net this grew we our And improved quarter's unit digits calendar and shifts quarter single traffic And

of our driving long-term momentum growth. profitable execution XE focused and strategy investments strategic Our are toward

excellence experience; of in to reach with and our the new engaging Works a reminder, omnichannel adjacencies products, markets, strategy a finally, XE's elevating brand and extending ways, enhancing and As efficiency. & the customers core our Bath seamless more enabling and Body are new operational

products. and We hard each talented elevating quarter, of the of progress work by in associates. the brand made of core our starting the the underpinned All is this with on XE's

to customer portfolio are continually across the demand. meet create packaging We quality ingredients, our updating of the innovating and products, raising fragrances are our including and and

timed new by the as investments, we this team with business drove to targeted a new in Our quarter successful strategically event fragrance with was coupled this in year's calendar. marketing holiday event. candle performance growth fueled home the align The promotional

customer We the and mindset. well met executed

the As through points compelling share we storytelling by home driving loved QX quarter. value-conscious and fragrance, to consumer, reasserting value with it meet our that differentiation we results, candle speed America's continued. the of through market it are our where when a a in competitive trend as the utilizing unit conveys quality range market a a the is in And products gains of brand we at our our agility assortment price most is, leader as a reported and category noted that has and

normalization it we market has and moderated impacted has have by this it in is to we not core a basis, material in of on delivering who candle our we while the fragrances. Fragrance a drove XXXX are, And care business expect compelling body to do unit quarter, and each and us growth year, impact on beyond.

with responded example, of growth luxuries American double-digit a the customer. helped drive Fragrance For in during customers luxuries. positively This full connecting the quarter. Everyday North to younger rollout everyday Mist is Fine

to and And Perfect latest has week Body from potential to growth the a drive PINK, which the about of platform, launch Platinum. the benefited single debuted Romance as the come. Vanilla excited of quarter. cross-category on-trend in in years also we launches And it third fragrance, fragrance final we're Care our for our of

sanitizer collaborations. driven moment new was to want on in a strength spray. Soaps and core also and X-ounce moisturizing sanitizers forms growth I a spend by sanitizers,

strategy a drive and brand element customers of As customers. top-of-mind awareness with in generates deliver storytelling to a differentiated products. are that our attracts new collaborations key existing our They reminder, highly growth core

Stranger primarily and category selective last year. drives launched of also it In on Halloween Our set, floor This focused exceeded generated which fragrance relevancy. to brand's our quarter, our X was we traffic, the only not third collaboration. cultural our buzz around home approach enhances Things collaborations Part the

collaboration. We also Emily announced our cross category Paris in

and around This event the is the kicked corner. off with QX a full successful early launch at just start the of access

ability expertise our in product international of are to fragrance our incrementality geographies expanding new extending and reach, their rates to new basket, attract to markets. our Adjacencies our strategy, opportunity second diversify category to are performance drive store evaluate the on expand We pillar additional large growth. On repeat opening addressable applying our locations we customers. adjacencies, XB an and portfolio, category the adjacent based purchase to and growing

Our and lip in men's, business XX% of perform potential become and hair, beyond. and approximately laundry share XXXX of categories few represent our the to a continue with of mix from to well year-to-date a highlights adjacent percentage our quarter. I'll of the larger

our largest included which this remains increase adjacency, quarter fragrances. body men's, and new launch is awareness. strong is opportunity we Momentum men's Today, evolve care we continue we and continue business in as business, as significant see in the our our to marketing to

responded launches our in lip, lipstick, expect In and is exciting [indiscernible] like to gloss Vanilla customers confident business, excite continue see well additional younger customers. our which care new example, which can we're products to of For body to you Fragrance. included also will

which rollout fragrance, differentiated full on is the U.S. we platform growth September. exciting included that an is laundry, home fragrance capitalizes believe completed We in in it expertise. our In for long-term

estate. real to Moving

continue International pillar the stores stores are XX% off-mall. portfolio move healthy. and the an of our locations, are remains reshape to Approximately very attractive our in portfolio and markets strategy. We of off-mall North American

in opportunity Middle not East. affected X% of the in our sales there's double retail in as the the approximately existing grew digits expand net represents by war markets. markets long-term and areas international we significant System-wide and QX enter new Today, sales, in

While the system-wide affected the we double began where the our retail to in October. to decline pressured regions year-over-year in sales be by business digit, war, continues impact moderate saw

of London. XXXth the of the international store end celebrated in opening At we our the third quarter,

on remain year year. this openings XX new track store partner net this stores Our with approximately

seamless a Next and is experience. our focus on engaging enabling omnichannel with customers

Our teams strides in marketing, have loyalty and technology. made

We on are having the in these growth. business. are positive employing impact that multiyear of are long-term key strategies sustainable these And a areas efforts already enablers

QX, For customers. rates retention example, customer attracting we achieved during an in improvement and high record new-to-brand

Fragrance We're segment especially highest year, strong quarter to This which this the customer grown up a by purchases the XX our within year. fragrances Fashionistas. group, value has every growth encouraged called

continue up outside loyalty QX, to those cross-category X% sales. year. XX% also XX over and have visit which the of customers higher prior than higher more, represents compared spend approximately million had retention purchase cross-channel industry-leading program. behavior active the We more and satisfaction has ratings advance frequently, to members, loyalty us rates our program, In we Loyalty our and

Our technology track. is on road map

long-term brand will more seamless nearly a building continue this connect of XX% content important to Fiverr, customers this audience Z holiday TikTok holiday luxuries tools awareness leverage Gen line allowing intend we According systems enabling the are to season. foundational the provide younger gifts customer with they engaging QX, period. successfully to everyday boost platform reach to shopping We this on discover throughout In and support and new where highly growth to using are. to experience. capabilities to We cross-channel and customers to on Shop, engagement us our launched TikTok increase

operational excellence efficiency. and enhancing Finally,

to we cost While engage continue and our customers initiatives be we to execute focused growth, top on discipline. drive line

Our Fuel plan and our exceeding we by is targets. deliver now savings $XXX the of cost for X-year million, million incremental significantly bringing to to Growth initial year-end, expect $XXX total progressing,

positioned Additionally, pleased a we manufactured relatively advantage, and and the our we To we're beauty park products performance the potential driving our agility. of around quarter, believe competitive America, summarize well With momentum North for I'm speed continues in be are to significant operational fluctuations. strong tariff with any XX% our building.

with demand and selling holiday at available to are QX, a gifts range price drive enter compelling season, key excited of to our points. offer we products As poised strong wide we're

whenever Our deliver ready wherever can exceptional and approach staffed while retail ensures shop they an are experience, fulfillment to stores centers choose. customers and omnichannel and fully seamlessly our

actions the the company term, position meaningful the to growth, and driving to our profitable creation. value Over shareholder we're return long taking strategy sustainable,

call our their I'd the providing outstanding for great Eva, to our for customers. to like execution teams delivering and priorities service thank turn I against Before to consistently our strategic for over

to I'll turn over that, With it Eva.

Eva Boratto

share. cost the our Gina, of morning, share $X.XX, delivered and per to $X.XX diluted by in and you, discipline. beating driven guidance was third our diluted executed well of net Thank quarter everyone. This good $X.XX outperformance ongoing sales per and earnings We

of earlier, our increase beating to as versus prior of net and product well. year, compelling innovation value X% As billion, consumers top an guidance favorably discussed line delivered on our responded We proposition. the sales $X.X

versus were of the calendar stores, net In expected, sales Canadian sales $X.X As an last X.X% $XXX year. year. increase million, quarter. U.S. to increase of Direct in by basis sales net shift X.X% approximately and net an the points compared XXX billion, prior totaled benefited

adjusted As BOPIS BOPIS, year-to-date the demand. XX% down year. sales. increased prior and demand stores. of were net BOPIS recognized direct are represents the quarter in XX% sales store digital from a net approximately XX.X% as International for reminder, net total outperformed sales When $XX million, approximately

markets our represents about entirely business. currently Middle which the was decline of by driven affected the half East, international The by the in war total

war, the by sales sales continues double International Our performance headwind XX growing point in strong net retail areas affected basis be approximate QX to system-wide an digits to year-over-year. not was growth.

profit quarter by points profit of in of decline basis planned and the prior was Gross increased continued from strategically in with rate driven compared AURs the quarter, cost in to offset XX.X% line savings, activities quarter. promotion year. Third benefited by gross expectations X% a XX mix.

agile take continue to will we and We maximize to appropriate the actions sales our business the will model, margin pricing for and utilize company.

quickly of marketplace also management QX allows demand. of shifts There our XX% of office to Our to result disciplined preferences sales percentage QX. was and net of of from in and some a consumer the costs. spend than nimble better as into us timing were chain our SG&A expectations, home competitive supply a the our respond

quarter third that note basis marketing an with of year-over-year points prior would quarters. I consistent reflects XXX SG&A investment, incremental Finally,

for of SG&A. we both third delivered across benefits our benefits In the $XX Growth of The cost spans quarter, million. approximately work and optimization Fuel profit gross

Growth team's on million. work I our expected -- for the with Fuel up this of our fuel pleased million, The from XXXX increase largely As estimate am in totals initiative. mentioned, $XXX contribution is XXXX $XXX Gina now prior margin. outstanding

Heading down quarter $XXX operating and to to with our we million year. of holiday ended XX.X% respect total decreased sales. income was inventory the last levels into positioned. total X% Third the well inventory inventory, of are season, With quarter net X.X% third

total we stores Internationally, in partners quarter, count and third international North stores the the XXX. store new permanently in closed quarter, resulting America. opened estate, XX third in stores of XX net XX in-mall off-mall a real For in new opened our

our Turning now to financial guidance.

assumes week QX the sales days our net and last Thanksgiving between elements QX is given include calendar consistent results guidance impacts. adjusting of the growth unique year The shift, midpoint our fewer Christmas. when X and XXrd expectations Our shopping that QX sales calendar these for the some with

the Our reported down to be X.X% year. sales are down to X.X% expected versus prior

points basis to rate be gross of prior Fuel versus for distribution improvement profit productivity. an savings quarter approximately fourth expect XX.X%, Growth year, We XX our reflecting and

XX year, be rate lap basis largely quarter up to points the We marketing our in last approximately which expect due approximately we to investments, to SG&A quarter. begin XX.X%, fourth to

tax quarter expense fourth of approximately net weighted $XX of approximately approximately expect nonoperating rate diluted with We shares XXX million. average million, of XX.X% outstanding a

per Considering $X.XX. these quarter fourth inputs, diluted we share of earnings $X.XX are and forecasting between

highlight will our XXXX I Now guidance. fiscal

the full added down expect to The we our million represents be $XX of XXXX and sales year, to XXXX X.X%. net down For in week growth. now to X.X% points net approximately XXX basis range to XXrd headwind a sales

sales We shifts provided in presentation. to due have calendar net our quarterly the impact the on slide

of and We approximately of to expect approximately continue SG&A XX% rate XX%. gross margin rate

reflecting X% guidance, at for the diluted are outperformance adjusted midpoint earnings to year and $X.XX per our QX up to our QX versus between We raising full prior $X.XX, the outlook. narrowing share and guidance our

quick on for a allocation. Now capital update

profitable top Year-to-date in were the expenditures our investments through sustainable business. through the Our third priority total driving $XXX long-term quarter, growth capital remains million.

capital remains vast year $XXX flow our million, full cash investment the statement. majority plan approximately in which capital be as Our reported expenditures will of

quarter, we paid and year-to-date. dividends, have the we million out million $XXX in During $XX paid out

recently share per dividend payable on X. December announced $X.XX of a Additionally, we quarterly

$X.XX continue growth. time expect dividend We per with sustained to dividend with increase our earnings over to of intention the annual share the

repurchased $XX.XX $XXX for we X we share. stock the X.X price common shares of During million stock average at quarter, for an Year-to-date, $XX shares common million repurchased of million. million per of

expectation to $XXX Our million. full repurchase the reflects guidance year

in a we $XXX basis. down. we XX-month of Year-to-date, on X.Xx And debt have which of of principal we million is trailing ratio debt-to-EBITDA amount $XXX notes. repurchased adjusted July gross next senior will maturing, Our pay year, million

expect and we year $XXX cash full the million. in investments million to $XXX business, to After flow free continue generate adjusted between

priorities repurchases. our of we'll return and share As put outlined, capital that towards dividend

are XXXX will head until not we holiday our business on our season in report the into against providing results. XXXX we building be momentum I the Lastly, pleased we we the any am guidance QX with execute and as strategy.

call to some turn back closing Gina that, I'll the for With remarks.

Gina Boswell

like net full and Thank am delivering our QX reflect I range, you, guidance outperformance. to earnings end thank to above the I'd teams of our close, our the sales Eva. high To and year for to pleased raise

are We all-important executing and on QX on building laser-focused the our momentum.

we're beginning investments see to are focused and results. Our working,

this in strategy business long-term the are taking to have and profitable the as actions volatile to right position environment XXXX. near-term place we We growth sustainable return the and right to to navigate enter

to to will We team lot have new a best-in-class executing. a the And as have call year, excited about. I for questions. now the look the to operator be we turn we over

Operator

first Hutchinson comes [Operator America. Bank from of Lorraine Our line Instructions] of the with question

Lorraine Maikis

normalization the candle your behind on said in Is that beyond. is impact that this don't deck to business what slide a pressure and you? change? have drives expect this XXXX You you on And a the material confidence

Gina Boswell

are the Thank remarks, we to you, said I -- category We candle from the Lorraine, in you. good as hear leaders.

market as a -- amplifying impact they result been our and we quality meeting a whole. And the drove that the seen customer at the certainly candle looking we've messaging gain of expect exerting where market don't The our and we're we've leadership are, we and we beyond. growth. comment was normalization unit made So also share, candles share as

our shine Stranger some collaborations Part seen the We fall us, Things seasonal X, assortment. have on for of when example, we levers, some for of candles,

to and really growth market. the as bringbacks responded customers The some these candle seasonal drove in that well, of

leading share and Thank XXXX, see brand to the we market for impacting behind -- putting we're So collaborations It behind allows building well this about question. all the see that leading innovation, in you been us. us moderated. as normalizing that having as activities marketing picture. effectively, the and had the And us

Operator

Our of comes Altschwager next question Mark Baird. from the with line

Mark Altschwager

wanted to on ask I gross margin.

for in first quarter I time gross guidance quite the even deliver think to of with is the where the upside outperformance the you some Fuel this in margin some initiative. and Growth didn't

right can moving So year. talk guidance puts this about require takes for business? the then there. And level you forward? will growth and higher just XX% of just picture, levels that some this through EBIT think the sustainable Or hoping of top you line the investment Is bigger margin us do implies

Eva Boratto

question, in both the did benefited Mark. in It delivered line that margin. margin. as we're returns the top point bottom gross with right some take cost as savings that our line. about well gross one. This basis Eva. was for promotions with we XXX We incremental strategically line on expansion. significant the from expectations planned on And Thanks pleased is the I'll lapping are year that We last we improvements have

margin our with pleased we're performance. So

you our XX%. margins As ask are gross longer term, question your target

for implies about guidance year this XX%. Our

continued level. So and we're and make the progress XX% on we've pleased target toward at XX% remain our margins to with those of focused margins the to moving improve OI

Operator

with line next question the from Our comes JPMorgan. Boss of Matthew

Matthew Boss

So so if for quarter? you gross far bridge Gina, that you what then on the in the gross could plan versus maybe in seeing you the traffic November? And fourth points margin, the that progressed, walk you're drivers. elaborate the And as saw expansion basis through margin XX could the quarter just Eva, cadence on Just category quarter? of maybe saw you trends in third maybe

Gina Boswell

Thanks, as in Eva well. to I'll I chime will start, Matt. ask and

grew As in the we the the body to last home themselves, categories and fragrance and said, quarter care, soaps sanitizers year. compared

was response our actually to to low positive and seasonal to had great So innovation. continue single digits. They see seek that customers our It the merchandise. newness

great increasing was lifting level everyday these seasonal Overall, innovation, proposition categories fragrance fragrances, things marketing the Vanilla Platinum, on-trend it's side. which nicely. we to like launches and competitive the categories. see lifted very like that our was also in those Romance And it and newness are by so supported luxuries, demand the which Mist And driving to value and Fine as provide respond investments and the the a this of whole Fragrance

remainder. you, So from the Over Eva, the to that's it for category side.

Eva Boratto

Sure.

the Matt, as point So margin, basis by optimize largely gross B&O, on XX continued network. our direct driven overall, the we fulfillment expansion benefits from is our

some do home the also line We as cost B&O benefit have that reductions well. office

So we're pleased QX the with expectations. gross margin

traffic of in quarter. was traffic our In were throughout that quarter, newness the traffic everyday it Traffic overall, by throughout our drove up traffic, performed was time I'll launch like -- by our pleased Stranger quarter. really It the [indiscernible] really was stores the Halloween driven terms but our collab. ago, a And amplified And Halloween. the finally, our up external in benchmarks. back feels digits, candles well, luxury exceeded we to trends X brought long we go Things double Part with which

X have working amplified our our from you legs we're we the customers. as pleased together, So with response of our got stool marketing, really product promotion, by the

Operator

Our Alex Straton next from Morgan Stanley. line the of question with comes

Alexandra Straton

Perfect.

single-digit actually provide then first back can hope are looks the a part dynamics, on week Just that like mid-single to have for it on the of from bigger is revenue on revenue. And what's you then anything you quick you delivering out you you high hopes of just back term? And in when half. Do you one digit base? growth way? one the adjust the as the It XXrd see adjacencies final become holding longer you that margin they the profile

Eva Boratto

third this and take first Eva. part. Gina take Alex, of couple I'll is the parts will the of the question

shifts, drive XXrd of a -- we we the between you Thanksgiving high, what and As performance, growth. in shorter QX QX the basis, you reported the shopping to for continue at the our delivered mid mid on performance and Obviously, a week as normalize calendar expected well significant has QX as Christmas. QX number time our calendar the and the looked when shifts at and at

pleased pleased we're we're built. we're quarter the momentum and we've that and the overall, entering So how

can adjacencies, margins. specifically they comment margin as On overall, as thumb it's given our but don't on the mature, into of gross any outlook. products improve product, typical gross our scale, I rule factored want to we a is

to turn back I'll term. it looking And Gina longer

Gina Boswell

thank you. So

adjacencies on go I just well. comment and think term let longer me as

the our to of relates goal aggregate, shop of the while penetration, in remind mentioned with this adjacencies, we And first That extend about adjacencies, our increase XX% was grew it really the growing is reach, half portfolio diversify it just in the consistent business. it's As to to core. above of us that the aggregate still And adjacencies year. quarter, ]. [ in the about

was by driven core. So the the sequential improvement

And really so and is both have driving core to adjacency important.

see as to I we adjacent with we're improved going We Eva well, right our in And both we're -- continue the contribution. where categories. should see categories not -- grow should but size and said the specifically to as to pleased XXXX, in On really on comment now. said sit core health we expect

Operator

from comes the Lejuez of line question with Paul next Citi. Our

Paul Lejuez

was you being X%, merch if what XQ? is higher? that missed margin but like-for-like it, on what in plan margin? the on quarter I Sorry what's up the could and merch for And share driving what third that AUR mix, your And AUR driving anything is

Eva Boratto

Yes. Paul, this is Eva.

merch of On to was improvement I improve flattish lapping some very I by We're from activities. year, say strong promotional year. cost. benefit last margin, to And to margin we offset of said the initiatives earlier, the our would some a last as continue

B&O at really pretty As you margin driving flattish well from and our as QX, year-over-year the improvement would efficiencies. look say merch we're I

Gina Boswell

variety the It it's a this mix our good, of combination the innovation. and marketing deliver mix. that elevating AUR driving function up And best price see add have product, that's price mix, of value and like-for-like and of we to better, on together. customers great product But to points. see with wide was And a the the to -- coming a in really, the We're I'll great X%. we and

results overall, show Thank the sit environment excited to in you So with pleased up question. the for we we're P&L. in the this and where see

Operator

question with of Our Markets. comes the Simeon from Siegel line Capital next BMO

Simeon Siegel

relatively to marketing in I dig a bit? then, How was a going the you but early, place. And still few -- data. forward? learnings great sales? I -- you have maybe a about percent thinking how with that you're collab could into of know know little are you as just Eva, you Gina, much can

would you're driving I'm far. characterize frequency catalysts you to you the how curious just seasonal shoppers' to Is it out creating if boosting greater so I'm on frame smooth -- like driving would learnings and the had the opposed you're benefits annual current that otherwise it customers, existing, specific seeing Like do new So maybe seems through as trying of holidays them spend? does for just or to relying could because purchases? you what share been think you. it seasons as

be any there So color would helpful.

Eva Boratto

I'll of beginning basis, XXX start Simeon, about Yes, right, with to we're bringing point it's annual the X.X%. was LY. the in still it step-up to basis the -- but us full you marketing marketing. step-up about Overall, lap annual quarter, XXX there's the a on see an point In QX, basis sales. X.X% our about investment, And from

Gina Boswell

relates well. really the attracting customers -- And customers top-of-mind the both products, that growth your highly learnings, on is as and collab and really to existing that, this in new with it driving of storytelling. delivering as on question And awareness generating it's a core top the differentiated

drive relevancy. to that a which a it's So it your brand it approach got we've but traffic, cultural does comes is our when Not only also collabs. enhancing measure to question, answer we selective use

Halloween that, Eva Stranger X Things of exceeded buzz discussed. set, the really floor examples as So which in generated expectations, Part

around corner. the a with this quarter, collaboration the the start is cross-category Paris right successful full of at event and access off in launch of early kicked Emily that Our

XX- total, what Netflix choose because Works working for we would complementarity in so the XX-year-old these building they're metrics be customer Body with. & traffic, way the of the relevancy, customer in and this of case to particularly Bath is And we property that the the is brand the

far. really out Bridgerton a of want people choosy for learnings, there's perspective. the we success that the about so collab pipeline is and gate having question. to you great be work with and that who us, for with one. we're from the success We're Thank next that's very can overall our ready pleased So the What's would of

Operator

with of Goldman McShane the comes Our next question Kate from Sachs. line

Katharine McShane

brand adjacent and generate with heard categories mentioned number it build just you the some particularly think well, we've were a but was that don't if customers. new-to-brand customers, today time there. greater and wondered language the Last quarter, performing changed of I to taking existing similar has anything awareness

Gina Boswell

are changed incrementality that Actually, we to that make baskets. and the we adjacencies although is there. building for the a we perspective, adjacencies, we delivery there's watch from the sure is that strong as do expected, delivering got Nothing's what want

there, change it rates are still is. strong. no Repeat So very

by to depending we're the lip varying are it's of of the And brand. that. new excited category, So on and whether that men's, percentage degrees the hair, laundry, customers

So with portfolio, our and penetration as are the of well varying progress. at actually degrees still no the These core. of we're pleased total percentage and but as change they're contributing

So see that. to it's great

Operator

Our Joanna next question Cowen. comes from with the TD of line Kim

Jungwon Kim

year, as if now? that plan newness how Obviously, as we color about this far And you get momentum think you with of Could talk newness you had the as just some wanted color it. some cadence newness ramp to on you next some year. nice can by also about up? much to of sales around And as well driven the provide is

Gina Boswell

commented and more. core And talk categories, which that up the in Yes. you the the quite about all question. we core big to refers usually sales. on being categories bit for a Thank We X

is also talk Works, newness the It which in customer for We have every more it's scalable, is is the are innovation. level Body & I'm driven And adjacencies, about we newness. to and around relevant -- come and The more of see. as always newness. of heydays newness by will but especially pleased also Bath bit we the

And excited that lifeblood the recipe. business, we percentage of see. a the year, work be but so we're to continue pipeline next the this of portfolio to as by newness There's will winning that continue going no on particular ramp and to we're

Operator

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

Irwin Boruchow

Eva, you. maybe for first one

return the then for international the of timing excluding and there? And expectation on to maybe growth given XQ for calendar the headwinds Just side, shifts, what's the follow-up the the Gina.

been Just robust lack like putting up, revenue outlook. guys of the especially your just margin, the tone and based have gross your QX it, because of upside it on doesn't also upside. the But but sound you

understand, Just share any margin to productivity, in into shift little need want to message, more I It is to that. strategic of you double-click gains? doesn't that's bit drive trying where but more up view to market you're kind trying give of to the just gross a your there sound like what more

Eva Boratto

highlight question. things as the of I Overall, look to for at Ike, you. just couple we a international, Thanks, want for

of in by store good areas system-wide First, the retail, actually there. sales an acceptance the digits. about really and the that's and We we not that comps, feel brand and health the was grew the underpinning saw openings acceleration, affected the war, And business, of double right?

our regions of war-affected about continue to they the pressured. Now business, be and represent half

saw start really In difficult there. of as began to predict we relief bit it's October, to dynamics the we the war, but of a the annualize

fourth back the our digits. commentary think perspective, from expect we're I would quarter, of if a if last at in our quarter. mid-single down commentary half about sales For last to sales be reported quarter, year, with line the And you look you largely the

earnings opportunity about to international see have markets. growth as longer-term for and we'll new great XXXX on more call, we but say our So a entering

Gina Boswell

no which of this on talked winners gross chase about the that question the to chain, you very what in that And about we leverage I can is came with best and We shift we in are agile very we is spoke margin top in the model, There's we expectations doing core have already and that healthy up of think gross our on gross and leveraging we're gains supply know, anniversary. line so Ike, your forth. is Eva margin. margin. to margin, giving But and in gross strategic strength, sellers as

core to customer back driving I We've X investments. so they to of this supply have, react well our levers as that demand agile increased a go got in above to value us as chair. got relevant proposition. all, categories the real I both are, adjacent. We've that legs have think and performance And model the chain the it we as our we But demand also them where meet the if We've core to scalable competitive got newness. allows

our take will the for you next we thank question. So question, and

Operator

of comes next the Our with from question Olivia Tong Raymond line James.

Olivia Tong Cheang

your great would to loyalty I nice manufacturing, the much to is provide And can to about about your [ competition, manufacturing, wanted exposure from was oversee program, is your how and your U.S. learnings you could to How of color you've to continued that you gain on ask then really in it's some opportunity that the ] that from wondering discuss momentum XX% them? leverage competition the in if here? I Great. as hear has be terms you much if very helpful. there are there's more made thoughts that just what any

Gina Boswell

which Well, let me loyalty, we're pleased really with start about.

of Our know, very U.S. loyalty of program, as you accounts has rates member sales. satisfaction XX% for our over XX% and high

know in us active forward, we're we million As remarks, visit said approximately to members the the year. our is about prior of that more our the engagement members in We program. deepening XX get But frequently. move going X% program. compared the And of to more we out loyalty even it's as also up this

say it when redemptions actually. to that reward is loyalty is go attached that did, they're even redemption call pleased more customers This we're we that to to We customers up frequency this when And earnings and flywheel loyalty because sales with program points Our ladder, valuable to the redeeming increases, greater know increases, their goal when us. the did. actually it which happened. get which

enrolled then an higher And and spend. loyalty members newly active to even proven app, enroll with the have when members, engagement they're

pleased we're have, and delivering So that we progress. overall see loyalty that on metrics to the really

on I have XX% representing with backyard, just North here also color we We're I'll together point, but having have advantage think pleased Beauty in Park, manufacturing competition. in that America. any our the don't say is on all the the I

So..

Eva Boratto

just the worked in I'd it over a we've several diligently add, a increase and agility puts our to believe good us reduce Gina, place. and as And last very company we years to exposure

Operator

the Our of next line with Bank. Deutsche question Krisztina Katai comes from

Krisztina Katai

within reach using campaigns? metrics that, effectiveness of season? that are you what share the then I recent building younger to to are maybe of And on the demographics, the platform plans particularly wanted just to this your just and during these of that leverage ask measure some what success. Can you launch secondly, about to then further TikTok early holiday key the are Shop

Gina Boswell

It's to us launch we're like Shop you, TikTok allow the but of exactly right, seeing. Thank The learning. we younger to that what happened that, was early, this Krisztina. quarter we're And reach customers.

things holiday by and making our YouTube importantly, part you We amplify brand going of and as so as it to And marketing are our forth. complement more We're this know, this Instagram, well, awareness. media strategies sort channel like activations. medium those season other social of are right, to

the of ad of a the younger towards with return is them. these combination reach, broader the they're by We're we're listing strategies how measure result we're category, a it's And directed demographic of particularly using on to media of metrics So social targeting the seeing media a customer success whether also the as social metrics a all to customer. spend. all

certain for excited And we metrics spend have They with we're hit that. so a disciplined that by But both of very threshold and there's very, question. the ROI number the you to Thank -- the to before continue we're and a those. levels it. on spend

Operator

Our next with from Dana question comes Telsey of Group. Advisory Telsey line the

Dana Telsey

the Nice progress. to see

in As you mentioned, that? did versus store traffic to were you BOPIS? in the increase see performance, the think following digital what And off-mall regional you trends about on-mall, there on that

Eva Boratto

demand. mall-based question. It grew strong. Eva. Dana, and across no XX% tiers. BOPIS represents it's or It performed for stores. than be to now our XX% conversion. digital variance continues different Thanks Overall, was there of off-mall year-over-year. say regions the the traffic quarter I'd was stores better BOPIS in notable

our the So incremental make come choice. into with an that of offering we're this customers when X/X purchase customers And store. said pleased they many this the times, about we've

So we're with very pleased BOPIS.

Operator

Retail with the question comes next Marni The Our of Shapiro Tracker. from line

Marni Shapiro

but little Could remember Congratulations name, on I a called talk something noticed. quarter. when nice I I've that curious the exact bit about is of was there's ones the I all about that. was if once through on uptake. I clicked the curious found I It good been it bunch a products? you rolled I'm you across can't a think it. And Scent-Scriptions. it's out

Gina Boswell

for question. the Thank Yes. you

you is you we're while. We low, had to Scent-Scriptions that was readily in available something have bulb for had wallflowers subscription, a running the something We've in want your The that So we right? if to actually beta is wallflower idea now rebadged threw offering on and it into It assortment. actually Scent-Scription. could heater And get right? an broader automatic a called wallflower replenish. that sort delivery, auto of mainly

at you're hundred products correct. So that. are on offer of couple that SKUs a minimum to Scent-Scription. And There's that we're pleased on and

We customers have just very our and value convenience to way seamless it's are that see know of experience seeking shopping a You'll relevant but part that's convenient. a value. another is

So we're have Scent-Scription to Thank excited for question. available you them. the to

Operator

with Korinne next line Our Sandler. question Piper the will Wolfmeyer be from of

Korinne Wolfmeyer

little How more from drive those standpoint? how term? do just actions, nicely. -- trending there? So to a you much you due And speak AUR mix. primarily It then like more near you Can bit think opportunity, the longer you the on AUR a viewing you're how to to is up mix speak pricing have just room points from flexibility price a and general little seems have both bit much in do

Gina Boswell

you. Thank Yes.

to well. bottom and optimize And at. a to as to because want levels. function model to note pre-pandemic I they're actually line. top is of something be want relative mentioned, overall, So want to that also where that up AUR as We our nimble trying We we're the digit agile customer meet our to AUR still continue is is I our double

right? other things of on, number a have We going

good, have a strategy. We better, best

margin price agile current impact both the wide we ensuring do variety AUR, these accretive We and promotions, environment. that rigorous have on they're which about But model of are and testing is to this sales We dollars. points. reflecting a

position and that going you growth. continue And had, line have second leverage the that that was I to scale and and we think it. capabilities promo top to the model, bottom we're speed So that that to question the company for

Operator

Our final Jefferies. line Helgans comes with of question this the from morning Ashley

Sydney Wagner

Yes. Great. Sydney mute. on on Ashley. is This I line had for my

a you everyday the you [indiscernible] about around that? of . the lot of kind versus that about content just at how towards looking your scents think Just has [indiscernible] luxuries and talk about philosophy a kind scent proprietary bit Can of line, been little

Gina Boswell

a younger customers, Thanks very about hit is bringing for with fragrances customers the it's especially luxuries our as been question. to Everyday well. the much great

people delivered If we fragrances you Fragrance -- it have that do just prices. I against have, we we is to at and that approachable What make bump that in the always quarter. the we're kind sure, Fine trying had as want this really as Mist said, of

you ] us. these fragrances scents whole for lot unique a really And we have out and -- this see area proprietary of [ there, are

high-quality our think the which, terms to with it customers. everyday houses, fragrance, very as luxury shop. fragrance are the know, Our really in we're of I They same. that mark provide hits you And and the lifting continue seeing

the So thank you for question.

that's I question. think our last

I you, So will And a wish with to that, very everyone happy Thanksgiving. Luke. over

Luke Long

be thank interest website. want joining Bath Thank Works. will today's your for to Body We on for call. you days & our A XX replay for available you in

Operator

conference This you. concludes today's Thank call.

lines at your participation. Thank time. this disconnect may for you You your

Bath & Body Works (BBWI) 25 Nov 242025 Q3 Earnings call transcript