Bath & Body Works (BBWI) Goldman Sachs 31st Annual Global Retailing Conference summary

Consumer trends and business environment

• Observed a more cautious, value-seeking consumer in Q2, with increased focus on quality and innovation alongside price sensitivity.

• Traffic pressure noted in Q2, consistent with broader retail benchmarks, especially off-mall.

• Guidance for net sales is down 4% to down 2%, with performance hinging on consumer response to newness and macroeconomic conditions.

• Good, better, best pricing and agile promotional strategies are used to balance value and innovation.

• Expectation for the first half of 2024 is a continuation of current trends, with a stable cost environment and competitive real estate advantage.

Innovation, collaborations, and new categories

• Collaborations are a recent, successful strategy, driving engagement and attracting new customers (e.g., Bridgerton, Crocs, Stranger Things).

• New product categories—men’s, lip, fabric care, and hair—are expanding the customer base and basket size, with men’s and lip showing strong growth.

• Fabric care and hair categories are being rolled out chain-wide, targeting large addressable markets and new-to-brand customers.

• TikTok Shop launch aims to reach younger customers and test new digital sales channels, though not expected to be a major sales driver initially.

Promotions, technology, and loyalty

• Semi-Annual Sale underperformed expectations, prompting changes in store presentation and marketing for future events.

• Agile promotional model allows weekly adjustments based on customer response, supported by technology investments post-separation from Victoria’s Secret.

• Loyalty program now drives 80% of sales, with 37 million active members and high satisfaction; future enhancements include flexible rewards and tiering.

• Personalized promotions and data-driven marketing are replacing broad-based campaigns, improving efficiency and customer engagement.