Bath & Body Works, Inc. company operates as a specialty retailer of home fragrance, body care, and soaps and sanitizer products under various brand names. It sells its products through retail stores, e-commerce sites, and international stores operated by partners. In 2023, the company focused on executing strategic initiatives to transform its business and return to sustainable and profitable net sales growth, while controlling costs and improving efficiencies.
In 2023, the company reached approximately 37 million active members in its loyalty program and successfully launched new men’s grooming, face and beard care, hair and shave, fragrant haircare, and laundry categories. It also expanded its fast-growing men’s shop to all its U.S. and Canadian stores and completed the rollout of its buy online-pick up in-store ("BOPIS") option to all U.S. stores. Additionally, the company completed the reformulation of all hand soaps and body care products to remove parabens and sulfates and introduced personalized recommendations on its website and mobile application.
Financially, for fiscal 2023, Bath & Body Works reported a decrease in net sales by $131 million, or 2%, to $7.429 billion compared to 2022. The gross profit decreased by $19 million, or 1%, to $3.236 billion compared to 2022, while the gross profit rate increased by approximately 50 basis points. General, administrative, and store operating expenses increased by $72 million, or 4%, to $1.951 billion compared to 2022. Operating income decreased by $91 million, or 7%, to $1.285 billion compared to 2022.
Looking ahead to fiscal 2024, the company anticipates continuing macroeconomic pressures and post-pandemic normalization of candles and sanitizers. It plans to deliver growth from its core categories, supported by newness and seasonal storytelling, reaching more consumers with the continued rollout of new category adjacencies, and acquiring more loyal and engaged customers driven by enhanced loyalty capabilities and personalized digital experiences.s.
On Friday the company's shares have moved -3.1% to a price of $46.75. Check out the company's full 10-K submission here.
