Q4 2024 Bath & Body Works Inc Earnings Call Transcript
Key Points
- Bath & Body Works Inc (BBWI) reported net sales of $2.8 billion for Q4, exceeding the high end of their guidance.
- The company successfully executed strategic initiatives, including collaborations with big names like Netflix and Disney, enhancing brand awareness and customer engagement.
- Active loyalty membership grew by 6% year over year, with approximately 80% of sales flowing through the program.
- The Fuel for Growth program delivered $155 million in incremental cost savings in 2024, significantly exceeding initial targets.
- BBWI's Everyday Luxuries line resonated well with younger customers, contributing to growth in the body care segment.
- Net sales decreased by 4% compared to the prior year, impacted by calendar shifts and fewer shopping days between Thanksgiving and Christmas.
- Direct net sales decreased by 9% compared to last year, although BOPIS demand increased.
- International net sales were down 10% from the prior year, with regions affected by the war in the Middle East declining.
- The home fragrance category saw a slight decline in Q4 due to the timing of promotional strategies.
- Gross profit rate for Q1 2025 is expected to be 50 basis points lower compared to the prior year, driven by a higher mix into international net sales.
Good morning. My name is Melissa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bath & Body Works' fourth quarter 2024 earnings conference call. Please be advised that today's conference is being recorded.
(Operator Instructions) I will 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' fourth quarter in full year fiscal 2024 earnings conference call. Joining me on the call today are Gina Boswell, 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 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
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