Bath & Body Works (BBWI) 4th Annual Evercore ISI Consumer & Retail Conference summary

Sales outlook and growth strategy

• Sales growth expected to return in the second half, driven by increased marketing and major new product launches.

• Four key growth elements: normalization in candles/sanitizers, core category growth via newness, expansion in adjacencies (men’s, hair, lip, laundry), and enhanced customer engagement.

• New product launches like Everyday Luxuries and the Bridgerton collaboration exceeded expectations and attracted younger, more diverse customers.

• Adjacency rollouts progressing: laundry to full fleet in fall, lip fixtures doubling sales, men’s and hair categories showing strong growth and new customer acquisition.

• Full-funnel marketing and loyalty program enhancements are key to driving more loyal and engaged customers.

Innovation and operational agility

• Vertically integrated model enables rapid testing, learning, and scaling of new products.

• Quick response to successful launches (e.g., Bridgerton, Everyday Luxuries) allows for inventory adjustments and sales maximization.

• Underperforming products are managed with flexible inventory strategies to minimize risk.

Promotions, pricing, and customer engagement

• Personalization through loyalty data and machine learning is driving targeted promotions and customer retention.

• Promotional activity expected to remain stable, with average unit retail (AUR) flat in Q2 and modest expansion for the year.

• AUR pressured early in Q1 but recovered with new product launches; modest increases expected in the second half due to pricing strategies and newness.

• AURs remain significantly above pre-pandemic levels.