The earnings call reflects a balanced sentiment. While the company achieved significant margin improvements, strong performance in specific segments, and successful cost optimization, it also faced challenges with a decline in overall sales, category normalization pressures, and softening consumer demand.

Company Guidance

In the Bath & Body Works third quarter 2023 earnings call, the company discussed a range of metrics and strategic initiatives guiding their future outlook. The third quarter net sales were down 2.6% from the previous year, with a sequential improvement of 100 basis points compared to the second quarter. Merchandise margins improved by 200 basis points year-over-year, attributed to cost optimization and flat average unit retail prices. The company reported a 5% increase in Halloween sales and maintained market leadership in candles and sanitizers, despite post-pandemic normalization pressures. The loyalty program now boasts nearly 41 million members, contributing to approximately 75% of U.S. sales since its launch. Digital initiatives, such as personalized product recommendations, contributed to a 4% increase in digital conversion in the third quarter. The company remains focused on achieving $200 million in annual cost savings and anticipates a sales decline of 1% to 5% in the fourth quarter, with the full year forecast adjusted to a 2.5% to 4% decline. For fiscal 2024, Bath & Body Works foresees a potential sales growth trajectory in the second half of the year, driven by strategic initiatives in marketing, technology, and product line expansions.

Merchandise Margin Improvement

Year-over-year merchandise margin rate increased by 200 basis points in the third quarter, driven by deflation benefits, lower product costs, and reduced transportation costs.

Strong Halloween Sales

Halloween event sales increased by 5% over last year's event, with new and elevated accessories selling out quickly.

Men's Business Growth

Men's business posted a high single-digit sales increase, attracting new and younger customers with new grooming products.

Loyalty Program Success

The loyalty program has nearly 41 million members and represents approximately 75% of U.S. sales since its national launch.

Cost Optimization

Approximately $45 million in cost savings delivered in the third quarter, with a plan to achieve $200 million in annual savings.

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Bath & Body Works (BBWI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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BBWI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 20, 2025	2024 (Q4)	2.04 / -	2.06	―	―	―
Nov 25, 2024	2024 (Q3)	0.47 / 0.49	0.48	2.08% (+0.01)
Aug 28, 2024	2024 (Q2)	0.36 / 0.37	0.4	-7.50% (-0.03)
Jun 04, 2024	2024 (Q1)	0.33 / 0.38	0.33	15.15% (+0.05)
Feb 29, 2024	2023 (Q4)	1.88 / 2.06	1.86	10.75% (+0.20)
Nov 16, 2023	2023 (Q3)	0.35 / 0.48	0.4	20.00% (+0.08)
Aug 23, 2023	2023 (Q2)	0.33 / 0.40	0.52	-23.08% (-0.12)
May 18, 2023	2023 (Q1)	0.26 / 0.33	0.64	-48.44% (-0.31)
Feb 23, 2023	2022 (Q4)	1.62 / 1.86	2.3	-19.13% (-0.44)
Nov 16, 2022	2022 (Q3)	0.20 / 0.40	0.92	-56.52% (-0.52)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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BBWI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 25, 2024	$30.71	$35.78	+16.51%
Aug 28, 2024	$34.49	$32.08	-6.99%
Jun 04, 2024	$50.95	$44.42	-12.82%
Feb 29, 2024	$47.53	$44.94	-5.45%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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