Bath & Body Works CFO to exit; Q1 tops estimates, rolling out store updates in July
Bath & Body Works’ reported better-than-expected earnings and revenue for its first quarter as it continues to work to transform its brand with more changes in the works.
The company also announced that CFO Eva Boratto will step down from her role effective June 12 “to pursue another professional opportunity.” Sixteen-year Bath & Body Works veteran Tom Javitch has been appointed interim CFO upon her departure while the company searches for a permanent replacement.
Bath & Body Works is working to drive growth under its multi-year “Consumer First Formula” strategy, which includes product innovation, simplifying the in-store experience, brand reinvigoration and expanded access to customers, including through third-party channels, including Amazon.
“We are in the early stages of transforming Bath & Body Works from a specialty retailer to a category-leading global brand,” CEO Daniel Heaf said on the company’s earnings call. “One that leads with product, creates desire, and builds deeper emotional connection with consumers.”
Heaf said that, starting in July, the retailer will begin to roll out updates across its entire store fleet.
“Consumers will see a more intuitive in-store experience, featuring clearer signage and product layouts designed to make the store easier to navigate by fragrance, form and franchise,” he told analysts. "At the same time, we are strengthening our digital presence to extend our reach and reduce friction, particularly for new and lapsed consumers.”
"Later this year, the company will relaunch its website with a mobile-first experience, stronger storytelling, and a faster, more seamless path to checkout,” Heaf said.
First Quarter
Bath & Body Works' net sales fell 3% to $1.38 billion for the quarter ended May 2. Analysts had expected sales of $1.36 billion. By segment, U.S. and Canada store sales fell 4% year-over-year, international rose 9%,
Earnings per diluted share were $0.90 for the quarter, compared to $0.49 per share in the year-ago period. Adjusted earnings per diluted share were $0.32, compared to expectations of $0.29 per share. Adjusted operating income of $151 million easily topped estimates of $141 million.
In the earnings statement, Heaf said that while the company’s first-quarter results exceeded guidance, they remain below “the standard our brand is capable of delivering.”
"That reality reinforces the urgency with which we are executing the Consumer First Formula,” he said. “Our efforts to strengthen our hero categories, modernize the brand, and expand our reach are beginning to resonate with consumers, and we are encouraged by the early proof points we are seeing.”
“We believe that the foundation we are building will drive improved performance over time, with the impact expected to build through the balance of 2026 and more meaningfully into 2027, as we position the company to return to sustainable, durable growth.”
At the end of the quarter, the company had a total of 1,378 stores.
