Bath & Body Works (BBWI) investor relations material

Leadership vision and growth strategy

• New CEO emphasizes a consumer-centric approach, leveraging experience from luxury and athletic sectors to drive innovation and brand storytelling.

• Focus on consistent product innovation, emotional brand stories, and integrated marketplace experiences, highlighted by collaborations like Disney Villains.

• Growth strategy centers on acquiring new consumers, improving digital experience, and expanding into new distribution channels such as college bookstores.

• Plans to relaunch the app and mobile web, aiming to sharpen the brand and attract new customers both online and in-store.

• Emphasis on fewer, more focused categories to reduce consumer overwhelm and drive productivity through better full-price selling.

Product, digital, and channel initiatives

• Packaging updates to highlight product efficacy and clean ingredients, with messaging front and center in stores and on packaging.

• Expansion into new channels, including 600 college bookstores, to reach younger consumers and signal broader distribution ambitions.

• Core business categories like body care and home fragrance remain a priority, with innovation and sharper storytelling planned.

• Multi-year Disney partnership to drive brand energy and consumer engagement through ongoing collaborations.

• Retail moments and promotional events will be refreshed to create excitement and avoid formulaic patterns.

Financial management and margin outlook

• 80% of supply chain is U.S.-sourced, with ongoing efforts to mitigate tariff impacts through supply chain optimization and assortment management.

• Margin expansion remains a goal, with investments in growth initiatives funded by reallocating internal resources rather than diluting margins.

• Promotions will be simplified to build consumer trust and support average unit retail (AUR) increases, balancing value-seeking behavior with brand clarity.

• No significant changes expected in freight, wages, or materials costs; focus remains on mitigating external pressures and investing in margin-driving products.