Bath & Body Works (BBWI) BofA Securities Consumer and Retail Conference 2025 summary

Business performance and outlook

• Reaffirmed Q1 and full-year 2025 guidance, expressing confidence in achieving the high end of revenue targets for Q1.

• Entered the year with momentum, supported by early success of the Disney collaboration and ongoing innovation.

• Market volatility and consumer sentiment are being closely monitored, but no significant decline in customer health observed.

• Input costs are expected to remain flat, with tariffs already factored into the outlook and mitigation strategies in place.

• Flattish candle market expected, with no need for market growth to meet guidance.

Growth drivers and innovation

• Focused on a three-legged stool: innovation, marketing, and technology, with continued investment in all areas.

• Ongoing product innovation includes collaborations, expansion in laundry and men's categories, and new forms in lip products.

• Marketing investment increased to 3.5% of sales, with greater emphasis on social media and younger demographics.

• Technology investments target omni-channel experience and customer data analytics.

• Adjacencies like men's, laundry, and lip are expected to grow faster than the core business.

Consumer trends and loyalty

• Value-seeking behavior persists across all income brackets, with high customer retention and successful new customer acquisition.

• Loyalty program drives high engagement and is a key lever for future growth.

• Brand loyalty attributed to product quality, innovation, and emotional connection, especially in fragrance and candles.