Q1 2026 Bath & Body Works Inc Earnings Call Transcript
Key Points
- Bath & Body Works Inc (BBWI) reported net sales and adjusted EPS ahead of expectations, despite a 3% decline in net sales.
- The company is seeing strong consumer response to new product launches, with double-digit increases in AUR and SKU productivity for new formulations.
- BBWI's Amazon channel is experiencing consistent week-over-week growth, attracting younger and more affluent consumers.
- The company is making progress on its consumer-first formula, with early proof points indicating the strategy is working.
- International sales grew by double digits, highlighting the potential for high-return, asset-light franchise growth outside North America.
- Net sales declined by 3.2% year-over-year, with body care underperforming due to assortment changes and a mix shift towards accessories.
- The underlying business trends remain pressured, consistent with past quarters, and the company is not yet calling an inflection point.
- Gross profit rate declined by 270 basis points, impacted by tariffs, inflation, and category mix.
- The company is facing challenges in the body care category, which declined mid-teens and was a significant drag on results.
- BBWI's guidance assumes elevated energy prices and does not include any potential tariff refunds, indicating ongoing cost pressures.
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 first quarter 2026 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.
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Good morning, and welcome to Bath & Body Works first quarter 2026 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 and this morning's press release, we have posted a slide presentation on our website that summarizes the information in these prepared remarks and provide 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
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