Q2 2025 Bath & Body Works Inc Earnings Call Transcript
Key Points
- Bath & Body Works Inc (BBWI) ended the quarter with revenue and adjusted earnings at the high end of their guidance range.
- The company raised the low end of their full year adjusted earnings per share guidance due to strong first half results.
- BBWI launched successful collections like Summer and Halloween-themed products, contributing to their performance.
- The company entered into a multiyear partnership with Disney, building on successful past collaborations.
- BBWI's loyalty program is performing well, with approximately 39 million active loyalty customers, up 5% compared to the prior year.
- BBWI has not achieved the new customer growth they aspire to and are not connecting deeply enough with younger consumers.
- The company's digital business is not meeting expectations, with direct net sales down 10% compared to last year.
- BBWI's second quarter adjusted operating income was down 6% compared to last year.
- The company is facing a significant impact from tariffs, with an expected negative impact of approximately $85 million on gross profit for the full year.
- BBWI's Body Care category underperformed, with sales down low single digits, and Mother's Day did not meet expectations.
Good morning. My name is Melissa, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Bath & Body Works second-quarter 2025 earnings conference call. Please be advised that today's conference is being recorded. (Operator Instructions)
I'll now turn the call over to Luke Long Vice President of Investor Relations. Luke, you may begin. .
Good morning, and welcome to Bath & Body Works second quarter 2025 earnings conference call. Joining me on the call today are Daniel Heaf, Chief Executive Officer; and Eva Boratto, Chief Financial Officer. In addition to this call in this morning's press release, we have posted a slide presentation on our website that summarizes the information in these prepared remarks in addition to providing some related facts and figures regarding our operating performance and guidance.
As a reminder, some of the comments today may include forward-looking statements related to future events and expectations. For
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