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BOARD OF DIRECTORS – JANUARY 2026 PRIVATE & CONFIDENTIAL 1 August 26, 2026 Q2 Earnings & 2026 Guidance
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Luke Long GVP Strategy & Investor Relations Tom Javitch Interim Chief Financial Officer Daniel Heaf Chief Executive Officer Q2 Earnings Call Participants 2
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3 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this presentation or made by our Company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “potential,” “target,” “goal” and any similar expressions may identify forward-looking statements. There are risks, uncertainties and other factors that in some cases have affected and, in the future, could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this presentation or otherwise made by the Company or our management. These factors can be found in Item 1A. Risk Factors in our 2025 Annual Report on Form 10-K, and our subsequent filings. We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this presentation to reflect circumstances existing after the date of this presentation or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Forward-looking Statements
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4 Second quarter net sales and adjusted EPS results both ahead of expectations. Adjusted Gross Profit Rate, Adjusted Operating Income and Adjusted Diluted EPS results included ~$80 million of tariff refunds. Excluding this benefit, adjusted EPS would have been $0.31, ahead of expectations. While underlying business trends remained pressured, direct returned to growth, innovation and expanded distribution provided encouraging early proof points. Narrowing full-year net sales guidance to down 4% to down 2.5% and raising our adjusted EPS guidance to $2.60 to $2.80. 2026 remains an investment year, with a continued focus on disciplined execution and strengthening our foundation for durable growth. Q2 2026 Financial Highlights 4 1- See Appendix for important information regarding the non-GAAP financial measures, including reconciliations of reported-to-adjusted results. Net Sales $1.5B Adjusted Operating Income1 $225M Gross Profit Rate 45.7% Adjusted Diluted EPS1 $0.62
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Create Disruptive & Innovative Products 5
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Reignite The Brand 10
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FEEL GOOD Our Value System Feel Good is our ultimate emotional benefit and what we value most. THE AMERICAN SPIRIT Our Cultural Lens We express feel good through a distinctly American perspective, rooted in optimism, creativity, resilience, and belonging. FOR EVERYBODY Our Community We are built on the belief that everybody deserves to feel good through generosity and access. We believe everybody deserves to feel good 11
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Win in the Marketplace 15 Design in progress
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16 UPDATED PHOTO OF DIGITAL SITE UPDATE PHOTO OF DIGITAL SITE
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19 PHOTOS OF REBROKERING – ANY UPDATED ONES WE HAVE?
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21 Operate With Speed & Efficiency
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22 Create Disruptive & Innovative Products Best in class Body Care, Home Fragrance, Soaps & Sanitizers with scents that are unmistakably Bath & Body Works Reignite The Brand A brand with cultural currency showing up through creators and in store theater, and building meaningful emotional connections with consumers Win In The Marketplace The best of Bath & Body Works, accessible anytime and anywhere she chooses to shop Operate With Speed & Efficiency Empowered teams, working with focus and agility to prioritize what consumers care about most Putting the consumer at the center, with focus on the four largest revenue driving opportunities The Consumer First Formula Build Winning Teams & Culture Empowered and engaged high performing teams bringing our Consumer First Formula to life everyday
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in millions, except earnings per share Q2 2026 Financial Results1 Key Highlights Net sales of $1.5B, a decline of (2.3%) to LY, above expectations. • Underlying business trends remained consistent with past several quarters, improved sequentially to the first quarter. • Performance reiterates the necessity of the Consumer First Formula. Gross Profit rate was 45.7%, excluding the benefit of the tariff refund, gross profit rate would have been 40.4%, a decline of 90 bps. • Slightly above expectations by ~40bps. • Decline to prior year is driven primarily by B&O deleverage of ~70 bps due to sales declines. • Merchandise margin rate roughly flat, excluding the benefit of tariff refunds. • Mixed adjusted AUR was flat. Adjusted SG&A dollars were flat and rate increased by 60 basis points to the prior year. • Better than expected due to incremental expense savings and discrete items. • Adjusted SG&A rate increase to prior year driven by sales deleverage as investments in Consumer First Formula and increases in inflation and merit were offset by Fuel for Growth. 23 ACTUALS vs. LY Favorable/(Unfavorable) GUIDANCE (May 27, 20262) Net Sales $1,514 (2.3%) (5%) – (3%) COGS and B&O $882 - Gross Profit $692 +8.1% Gross Profit Rate 45.7% +440 bps ~40% Adjusted SG&A1 $467 Flat Adjusted SG&A Rate1 30.8% (60 bps) ~31.8% Adjusted Operating Income1 $225 +30.4% Adjusted Operating Income Rate1 14.8% +370 bps Interest Expense & Other $52 +17.6% ~$56 Adjusted Tax Provision1 $48 Adjusted Tax Rate1 27.9% ~29.3% Adjusted Net Income1 $125 +60.7% Weighted Average Diluted Shares Outstanding 202 million ~203 Adjusted Earnings Per Diluted Share1 $0.62 +67.6% $0.20 - $0.25 1- See Appendix for important information regarding the non-GAAP financial measures, including reconciliations of reported-to-adjusted results. 2 - The company’s Q2 guidance was provided as a part of the company’s Q1 2026 earnings materials.
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Body Care Q2 sales down mid-single digits Home Fragrance Q2 sales down low-single digits Soaps & Sanitizers Q2 sales flat Q2 2026 North American Category Performance 24
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25 75% Stores – U.S. & Canada 18% Direct – U.S. & Canada 7% International & Other 25 25 Q2 2026 Net Sales By Channel $275M +3.0% to LY $108M +24.9% to LY $1.1B (5.4%) to LY • Normalized for our free shipping threshold change, digital outperformed stores. • BOPIS represents ~25% of total direct demand. • Inclusive of domestic third-party wholesale revenues. • International system-wide retail sales1 up high single digits and net sales were up low-double digits in the quarter. • BOPIS net sales are reported as store net sales. 1 - Total "international system-wide retail sales” means the net sales of all Bath & Body Works stores and digital channels located outside North America and owned and/or operated by the company’s franchise, license and wholesale partners. While total international system-wide retail sales are not recorded as net sales by the company, management believes the information is important in understanding the company’s financial performance because these sales are the basis on which the company calculates and records certain net sales for its International business and are indicative of the financial health of the company’s franchise, license and wholesale partners and the prospects for growth of the company’s International business. NOTE: BOPIS stands for "Buy Online, Pickup In Store."
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Stores Selling Sq. Ft. (000’s) 5/2/2026 Opened Closed 8/1/2026 5/2/2026 Opened/ Remodels Closed 8/1/2026 Bath & Body Works U.S. 1,810 23 (10) 1,823 5,155 57 (22) 5,189 Bath & Body Works Canada 113 1 - 114 329 3 - 332 Total Bath & Body Works 1,923 24 (10) 1,937 5,484 60 (22) 5,521 Total Company-Operated Stores Total Partner-Operated Stores Q1 2026 vs. Q2 2026 1- Includes store locations only and does not include kiosks, shop-in-shops, gondola or beauty counter locations. Stores 5/2/2026 Opened Closed 8/1/2026 International 542 17 - 559 International – Travel Retail 37 - - 37 Total International1 579 17 - 596 Store Count And Company-Operated Selling Square Feet 26
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Key Highlights Net sales now expected to be down (4%) to down (2.5%). • Underlying business trend down low single digits with comparable level of promotions to prior year. • Macro environment similar to 2025 with continued value -seeking consumer. • Innovation pipeline, improved marketing and new touchpoints will begin to contribute over time, with a greater impact in the back half of 2026 and into 2027. Benefit of Q2 tariff refunds of ~$80 million is partially offset by: • Tariff and input cost inflation of ~$30 million. • Incremental investments in the Consumer First Formula, primarily into marketing efforts of ~$35 million. Adjusted Gross profit rate now expected to be ~43.3%. • B&O deleverage due to sales declines. • Assumes the approved tariffs and input cost environment as of the end of Q2 remains in place through the balance of the year. Adjusted SG&A rate now expected to be ~29.6%, reflecting increased Consumer First Formula investments. Fuel for Growth targets $250 million of cost savings over two years. We expect to exceed our initial target of ~$175 million in 2026 by $25 million, split roughly evenly between Gross Margin and SG&A. Full-year guidance excludes any assumption of share repurchases. In millions, except earnings per share 1- See Appendix for important information regarding the non-GAAP financial measures, including reconciliations of forecasted amounts. Metric Guidance (August 26, 2026) Guidance (May 27, 2026) Net Sales (4%) – (2.5%) (4.5%) – (2.5%) Adjusted Gross Profit Rate1 ~43.3% ~42.4% Adjusted SG&A Expense Rate1 ~29.6% ~29.2% Adjusted Interest Expense & Other1 ~$217 ~$230 Adjusted Tax Rate1 ~26.8% ~26.5% Weighted Average Diluted Shares Outstanding ~203 million ~203 million Adjusted Earnings Per Diluted Share1 $2.60 - $2.80 $2.40 - $2.65 Capital Expenditures ~$240 ~$270 Free Cash Flow1 ~$650 ~$600 FY 2026 Guidance1 27
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Key Highlights Q2 net sales expected to be down (5%) to down (2.5%). • Underlying business trend down low-single digits with comparable level of promotions to prior year. Gross profit rate expected to be ~40%, reflecting higher store occupancy and deleverage due to sales declines, as well as product transformation investments. SG&A rate expected to be ~34.8%, reflecting sales deleverage and increased investments associated with the Consumer First Formula, primarily in marketing. Metric Guidance (August 26, 2026) Net Sales (5%) – (2.5%) Gross Profit Rate ~40% SG&A Expense Rate ~34.8% Adjusted Interest Expense & Other1 ~$54 Adjusted Tax Rate1 ~26% Weighted Average Diluted Shares Outstanding ~203 million Adjusted Earnings Per Diluted Share1 $0.07 - $0.12 in millions, except earnings per share Q3 2026 Guidance1 28 1- See Appendix for important information regarding the non-GAAP financial measures, including reconciliations of forecasted amounts.
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Q2 Year-to-Date Results FY’26 Guidance Capital Expenditures $98M ~$240M Dividend Payments $80M $0.40/share dividend Expect to maintain our annual dividend of $0.80/share Debt Repayment $284M Notional Redemption of January 2027 notes (Q1’26) ~$534M Notional Redemption of $284M January 2027 notes (Q1’26) and $250M partial redemption of June 2029 notes (Q3’26) Free Cash Flow1 ~$650M 1 - See Appendix for important information regarding the non-GAAP financial measures, including reconciliations of forecasted amounts. 29 Capital Allocation Highlights
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A Strong Foundation to Execute the Consumer First Formula 2026 is a year of disciplined investment and execution behind the Consumer First Formula to position the business for sustainable, long -term growth, and we are confident in our strategy and ability to establish Bath & Body Works as a premier global brand. 30 Leader In Attractive Space A market leader in each of our 3 hero categories: Home Fragrance, Soaps & Sanitizers, and Body Care1 provides a strong base for innovation and brand elevation. Consistent Free Cash Flow Generation ~$650M3 expected in FY26, enabling reinvestment in growth and maintaining balance sheet strength. Margins That Support Strategic Investment FY26 adjusted operating margin expectations of ~14%2 reflect disciplined cost management while funding product, brand, digital and marketplace capabilities. Balanced, Disciplined Capital Allocation Expected continued payment of annual dividend, ~$240 million of capital expenditures for the year, and a commitment to maintaining a strong balance sheet, underscoring our commitment to disciplined capital allocation priorities. 1 - Source: Circana & BBW Internal Data, based on full year 2025 results; 2 – Based on the mid-point of our fiscal 2026 full year guidance. 3 - See Appendix for important information regarding the non-GAAP financial measures.
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31 Q&A
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Appendix Other financial information 32
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Debt Maturities as of August 26, 2026 33 $444 $232 $844 $284 $802 $575 $201 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
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Stores Selling Sq. Ft. (000’s) 1/31/2026 Opened Closed 8/1/2026 1/31/2026 Opened/ Remodels Closed 8/1/2026 Bath & Body Works U.S. 1,814 36 (27) 1,823 5,166 88 (64) 5,189 Bath & Body Works Canada 113 1 - 114 328 4 - 332 Total Bath & Body Works 1,927 37 (27) 1,937 5,493 92 (64) 5,521 Total Company-Operated Stores Total Partner-Operated Stores Year-to-date 1- Includes store locations only and does not include kiosks, shop-in-shops, gondola or beauty counter locations. Stores 1/31/2026 Opened Closed 8/1/2026 International 536 25 (2) 559 International – Travel Retail 37 - - 37 Total International1 573 25 (2) 596 Store Count And Company-Operated Selling Square Feet 34
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Adjusted Financial Information – Q2 2026 $ in millions, except per share amounts 35
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Forecasted Adjusted Financial Information – 2026 $ in millions, except earnings per share amounts 36
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Forecasted Adjusted Financial Information – 2026, cont. $ in millions, except earnings per share amounts 37
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Forecasted Free Cash Flow Information $ in millions, except share amounts 38