Q1 2026 Earnings Conference Call
8:32 AM Daniel Heaf & Eva Boratto CFO (she is leaving the brand)
Net Sales declined 3%
Executing with urgency and remain on track for the transformation roadmap.
Multi-Year plan to return Bath and Body Works to sustainable growth
To bring luxury scents, real benefits, to build a brand consumers love, trust and choose every day.
Expect the impact to build through the year and become more visible to consumers and in the financials as they move into 2027.
PROGRESS (4 strategic priorities)
1. Creating disruptive and innovative products - restart the innovation engine
Better Product Clearly Communicated Wins - evidence with the new hand soap moisturizing, revitalizing formulas
- focused marketing, clear consumer benefits, stronger product offering, upgraded packaging, stronger in store and online presentation, sharper execution
Value is not simply Price. It is the Quality of the product, the Clarity of the benefits, and the Strength of the experience relative to the Price the consumer pays. That is the equations we are focused on improving.
Body Care underperformed the broader business in the quarter (pulled back Everyday Luxuries)
Brought back 10 Everyday Luxuries - remain an important long-term franchise
Rebuilding the Core Assortment, Increasing Fragrance Loads, and expanding into new forms and sizes to support durable growth.
Continue to use Collaborations strategically as a way to drive engagement, build relevance, and support key seasonal moments.
DISNEY PRINCESSES 2 - built on the insight from the original launch - resonated with existing customers, particular strength on accessories where they broadened the offering this year.
Will Use Collaborations to will bring Cultural Relevance and Brand Equity, attract new consumers, and support their most important franchises and seasonal moments.
PEEPS - kept collaborations INTENTIONALLY limited in scale - and it drove consumer excitement as it quickly sold out. Supported the Easter Collection - Spring collection was up 9% over last year.
VERA BRADLEY - Supported the Mother's Day Collection. Drove excitement and interest during the key gifting moment.
Second Half of the Year: Consumers will see upgrades in their HERO performers:
- NEW FLAT BACK HAND SANITIZERS
- Upgraded Vessels
- Pump on Moisturizing Body Wash
- Higher Fragrance Load
- More Modernized and Elevated Packaging
Bolder Marketing - Stronger Social Engagement - Talent Partnerships
2. Reignite the Brand - Creatively, Culturally, and Emotionally
Sharpening their positioning, elevating their creative expression, moving towards clearer more benefit forward storytelling. Wants to create an experience worth choosing, time and time again.
Creative Influencers - 100+ Influencers on Social Platforms consumers use everyday
White Barn Expanded - grew approx. 20% - attracted younger consumers
Enriched Brand Expression (rolls out later this year)
Transforming from a specialty retailer to a category leading global brand. One that leads with product, creates desire, and builds deeper, emotional connection with consumers.
3. Winner in the Marketplace - strength, reach, and convenance
Meet Consumers where they shop:
- 3rd Party Platforms
- In-Stores
- Online
JULY UPDATING across the fleet
intuitive instore experiencing - featuring clearer signage, layout to make it easier by fragrance, form, and franchise.
strengthen the digital experience for new and lapsed consumers.
Relaunch the website with a Mobil first experience, stronger storytelling, and a faster, seamless path to checkout.
Celebrate the Fragrance Icons - A Thousand Wishes.
Growth in the 2nd half with Icon-ization of Japanese Cherry Blossom
Holiday 2026 will be Meaningful Different with a Bigger and Bolder Campaign
10% improvement in conversion among new consumers
AMAZON business is in its early stages, launched on the first quarter (February). 94 unique SKU's (7% of the active in-store products). Important compliment to their own platforms - Consistent growth week over week. Reaching consumers who are not shopping in regular channels. Meaningful skew to younger and more affluent consumers. Their own
Cleaning up the marketplace, setting quantity limits helped.
Controlled, curated compliment to their own channels.
International Sales remains a key pillar of the strategy. Retail sales were up double digits, despite near term pressure in the Middle East.
Learning thoughtfully, refining and scaling their prescence.
Be in the path of the consumer, spark discovery, and ensure Bath and Body Works shows up clearly, consistently, whenever and wherever consumers chose to shop.
4. Operate With Speed and Efficiency
Simplifying the Business
EVA 8:48 AM
Net Sales were 1.4 B dollars - down 3.2% versus last year
- 60% of fleet off Mall locations
- 13 New NA stores off mall- closed 17 mall stores
- International Stores opened 8 stores and closed 2 stores - 579 international stores
Soaps & Sanitizers - grew low single digits, with continued strength in sanitizers and solid performance in soaps driven by the new revitalization and moisturizing soap sale.
TOM JAVITCH - taking over for Eva until the position is filled.
8:58 AM Daniel & Eva Questions
Wells Fargo, JP Morgan, Guggenheim Securities, Bank of America, Citi, Piper Sandler, Bayer, Jefferies Group, Telsey Advisor Group
All Photos Credit: BBWINC.com
Slides