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

Strategic vision and execution

• Leadership has implemented a 5E strategy: elevate brand/product, extend categories/geographies, engage customers, enable omnichannel, and enhance operations.

• Focus on targeted marketing, personalization, and customer experience, supported by a new leadership team.

• Vertically integrated, agile supply chain and strong retail stores are key competitive advantages.

• $300 million in cost savings achieved over two years, improving margins and supporting growth.

• Innovation and newness in product offerings remain central to attracting and retaining customers.

Market environment and competitive landscape

• Maintains leadership in home fragrance and soaps/sanitizers, and is #2 in body care.

• Faces a value-seeking customer base and competitive pressures, but leverages quality, experience, and convenience.

• 85% of products are North American sourced, minimizing tariff risks and enabling supply chain agility.

• Post-pandemic normalization in core categories is largely complete, with stable to growing trends.

• Innovation and value proposition led to outperformance in Q3, with all major categories growing.

Digital and omnichannel growth

• Omnichannel strategy prioritizes seamless customer experience across digital and physical stores.

• Digital demand, including BOPUS, grew 40% in Q3; 25% of digital orders are fulfilled by stores.

• Investments in technology, analytics, and customer engagement have driven record customer retention.

• New digital initiatives include TikTok Shop and Scent-Scription subscription service.

• No fixed digital penetration target; focus remains on customer choice and convenience.