Bath & Body Works (BBWI) Morgan Stanley Global Consumer & Retail Conference 2025 summary

Strategic review and learnings

• Identified strong competitive advantages in core categories, including a vast fragrance portfolio and a large, loyal customer base of 40 million active members.

• Previous strategy to expand into adjacencies like laundry and hair did not deliver expected growth or new customers, leading to a renewed focus on core categories.

• Over-reliance on promotions was found to erode brand equity and reference price points, prompting a shift to a more balanced approach.

• Collabs will be used to energize the brand, not to prop up quarterly results.

Consumer-first formula and strategic pillars

• Four pillars: innovative core products, brand reinvigoration, marketplace expansion, and internal efficiency.

• Focus on cleaner formulas, modern packaging, and consistent, elevated marketing to meet evolving consumer needs.

• Plans to win in the marketplace by meeting consumers where they are, including digital and physical channels.

• Internal cost savings will fund investments in product, brand, and digital initiatives.

Digital transformation and marketplace strategy

• Digital experience overhaul underway, including improved product photography, new mobile homepage, and app.

• Online penetration in key categories lags market; significant opportunity to close the gap.

• Plans to reclaim brand presence and sales on Amazon, addressing $70 million in grey market sales.

• Shift in tech investment from backend to consumer-facing initiatives.