Latest news with #DanielHeaf
Yahoo
6 days ago
- Business
- Yahoo
Bath & Body Works targets college bookstores to woo young buyers
By Nicholas P. Brown NEW YORK (Reuters) -Bath & Body Works is going to college. Students at hundreds of U.S. universities will soon be able to buy the company's fragrances, candles and other items at campus bookstores, in a departure from the beauty retailer's long-held business model as it tries to lure coveted Gen-Z shoppers. Bath & Body has struck deals with bookstore operators like Barnes & Noble and Follett Corp to set up shops inside some 600 campus stores, where it will sell popular fragrances like Mahogany Teakwood and Champagne Toast, new CEO Daniel Heaf told Reuters. Schools include George Washington University, Boston College and Vanderbilt University. It is the first time that Bath & Body will sell items outside its own stores, but it won't be the last, Heaf said. "This idea of being either a wholesale brand or a direct-to-consumer brand is over," he said, adding that third-party distribution will be key to growth in the future. Boosting sales with Gen-Z is a priority for Heaf, who took the reins in May after a tough year that saw the company's shares removed from the benchmark S&P 500 index. The shares have lost 24% over the last two years, and closed at $28.93 on Tuesday. College bookstores could be fertile ground for gauging what younger buyers want without investing much capital, said Morningstar analyst Jaime Katz. It's also "a way to keep the conversation going with teen girls while they're ... not living with their parents anymore, not going to their usual places anymore," Katz said. An April survey by investment bank Piper Sandler found that, among teens, sales of fragrances were up 22% versus the same time last year, making it the fastest-growing segment in the beauty industry among teen shoppers. Before joining Bath & Body, Heaf held various roles at Nike, including running its direct-to-consumer business, which former CEO John Donahoe leaned heavily into after the pandemic, reducing the apparel brand's reliance on third-party retailers. That direct-to-consumer shift backfired, and Nike has since sought to repair its retail relationships. But analysts have attributed the failure more to a lack of fresh product than to the work of Heaf, whose reputation as an innovator remains solid. Katz believes Bath & Body's $29 share price could be a bargain, noting the company's strong operating margins and limited exposure to tariffs. One challenge Bath & Body faces, she said, is communicating to consumers the breadth of its product line, which ranges from soaps to lip balms to wallflowers. On that front, Heaf hinted that the company may seek to streamline offerings, focusing on the strongest sellers, and ramp up its digital presence. Bath & Body spends 3% to 4% of its revenue on marketing, but Heaf said he would rather concentrate on fewer, but deeper, campaigns to boost brand awareness. "Think about a video on Instagram that tells a story about the product," he said. "Building awareness leads to a delay in purchase, because you're capturing a new consumer. But it works. I've seen it work."
Reuters
6 days ago
- Business
- Reuters
Bath & Body Works targets college bookstores to woo young buyers
NEW YORK, Aug 6 (Reuters) - Bath & Body Works (BBWI.N), opens new tab is going to college. Students at hundreds of U.S. universities will soon be able to buy the company's fragrances, candles and other items at campus bookstores, in a departure from the beauty retailer's long-held business model as it tries to lure coveted Gen-Z shoppers. Bath & Body has struck deals with bookstore operators like Barnes & Noble and Follett Corp to set up shops inside some 600 campus stores, where it will sell popular fragrances like Mahogany Teakwood and Champagne Toast, new CEO Daniel Heaf told Reuters. Schools include George Washington University, Boston College and Vanderbilt University. It is the first time that Bath & Body will sell items outside its own stores, but it won't be the last, Heaf said. "This idea of being either a wholesale brand or a direct-to-consumer brand is over," he said, adding that third-party distribution will be key to growth in the future. Boosting sales with Gen-Z is a priority for Heaf, who took the reins in May after a tough year that saw the company's shares removed from the benchmark S&P 500 index. The shares have lost 24% over the last two years, and closed at $28.93 on Tuesday. College bookstores could be fertile ground for gauging what younger buyers want without investing much capital, said Morningstar analyst Jaime Katz. It's also "a way to keep the conversation going with teen girls while they're ... not living with their parents anymore, not going to their usual places anymore," Katz said. An April survey by investment bank Piper Sandler found that, among teens, sales of fragrances were up 22% versus the same time last year, making it the fastest-growing segment in the beauty industry among teen shoppers. Before joining Bath & Body, Heaf held various roles at Nike (NKE.N), opens new tab, including running its direct-to-consumer business, which former CEO John Donahoe leaned heavily into after the pandemic, reducing the apparel brand's reliance on third-party retailers. That direct-to-consumer shift backfired, and Nike has since sought to repair its retail relationships. But analysts have attributed the failure more to a lack of fresh product than to the work of Heaf, whose reputation as an innovator remains solid. Katz believes Bath & Body's $29 share price could be a bargain, noting the company's strong operating margins and limited exposure to tariffs. One challenge Bath & Body faces, she said, is communicating to consumers the breadth of its product line, which ranges from soaps to lip balms to wallflowers. On that front, Heaf hinted that the company may seek to streamline offerings, focusing on the strongest sellers, and ramp up its digital presence. Bath & Body spends 3% to 4% of its revenue on marketing, but Heaf said he would rather concentrate on fewer, but deeper, campaigns to boost brand awareness. "Think about a video on Instagram that tells a story about the product," he said. "Building awareness leads to a delay in purchase, because you're capturing a new consumer. But it works. I've seen it work."
Yahoo
30-05-2025
- Business
- Yahoo
Bath & Body Works Inc (BBWI) Q1 2025 Earnings Call Highlights: Strong Sales Growth and ...
Net Sales: Increased by 3%, reaching $1.4 billion, at the high end of guidance. Earnings Per Diluted Share: $0.49, exceeding the high end of the range. Gross Profit Rate: 45.4%, an increase of 160 basis points compared to the prior year. Operating Income: $209 million, representing 14.7% of net sales, an improvement of 120 basis points versus prior year. Inventory: Ended the first quarter with total inventory up 7% compared to the prior year. Store Openings and Closures: Opened 13 new North American stores and closed 8 stores; internationally, opened 14 new stores and closed 19 stores. International Sales: Grew approximately 10% in the quarter. Loyalty Program: Approximately 39 million active loyalty customers, up 4% compared to the prior year. Free Cash Flow: Expectations remain in the range of $750 million to $850 million for the year. Share Repurchases: Repurchased 4.3 million shares for $135 million at an average price of $31.24 per share. Warning! GuruFocus has detected 4 Warning Signs with BBWI. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bath & Body Works Inc (NYSE:BBWI) reported a 3% increase in net sales, reaching the high end of their guidance range. The company exceeded expectations with earnings per diluted share of $0.49, surpassing the high end of their range. The Disney collaboration was a significant success, exceeding expectations and driving strong consumer engagement. The loyalty program is performing well, with approximately 39 million active members, contributing to increased spend and trip frequency. International retail sales grew approximately 10% in the quarter, highlighting potential for further global expansion. Direct net sales decreased by 4.3% compared to last year, indicating challenges in the digital sales channel. The company faces tariff-related costs impacting inventory levels, which are expected to remain elevated in the first half of the year. SG&A expenses were slightly higher than expected due to incremental investments in marketing and store associate training. The candle market remains pressured, affecting growth in the Home Fragrance category. The company is still in the early stages of developing a clear strategy for international expansion and alternative distribution channels. Q: Daniel, what attracted you to Bath & Body Works, and what are your early observations about the company's opportunities and challenges? A: Daniel Heaf, CEO: I was drawn to Bath & Body Works because of its strong emotional connection with consumers and its robust business foundation, including 1,900 stores and 39 million loyalty members. My philosophy is to put the consumer at the center, creating innovative products and telling compelling brand stories. I see opportunities to consistently apply this philosophy to attract new consumers and accelerate growth. Q: Can you elaborate on the company's growth strategy and any investments required to achieve it? A: Daniel Heaf, CEO: Our strategy will focus on fewer, bolder priorities, targeting consistent and repeatable growth drivers. We will provide a clear roadmap and KPIs for tracking progress. Key areas include digital refresh, packaging, alternative distribution, and international expansion. We aim to grow both the top and bottom lines simultaneously, focusing investments on the greatest opportunities. Q: What are your plans for marketing and international expansion? A: Daniel Heaf, CEO: We aim to connect more emotionally with consumers, focusing less on price and more on compelling stories. Internationally, we see significant growth opportunities and will prioritize markets with the right business models. We plan to explore new distribution channels to reach new consumers. Q: How do you view the potential for growth in the Home Fragrance and Body Care categories? A: Eva Boratto, CFO: We expect Body Care to grow more than low single digits over time, aligning with market growth. The candle market is currently pressured, but we are innovating to drive growth in Home Fragrance. Gifting has shown strong growth, reinforcing our position as a gifting destination year-round. Q: How are you approaching capital allocation and the balance between returning capital to shareholders and funding growth initiatives? A: Daniel Heaf, CEO: It's early days, but my focus is on ensuring current investments are directed towards priority growth areas. We will work with the Board to evaluate capital allocation strategies, balancing shareholder returns with funding for strategic growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
30-05-2025
- Business
- Business Insider
Bath & Body Works is ready to go international after a bruising year saw its stock fall 40%
Bath & Body Works' new CEO is only 10 days into the job, but is already planning a major strategy shakeup. The home fragrance retailer reported a strong start to 2025, with net sales up 2.9% to $1.4 billion in the first quarter of 2025. Earnings per diluted share jumped 29% to $0.49, surpassing the firm's own projections. A new Disney collaboration leading to the launch of six Disney Princesses fragrances helped to boost earnings from the most recent period, Bath & Body Works said. In its statement, the company also introduced its new CEO, Daniel Heaf, who was previously Nike 's chief strategy and transformation officer and senior vice president at different departments in Burberry. Speaking about his plans for the Columbus-headquartered retailer just 10 days into the job, Heaf said the firm would be listening to customers to gather insights, using those insights to create products, sharing brand and product stories, and bringing all of that together in an integrated global marketplace. "Today, international represents about 5% of our business, but from my experience at both Nike and Burberry, I know that international growth is incremental," he told investors in the earnings call on Thursday. "It can define an era." "In the coming weeks, I'll be on the ground with our partners and customers internationally to explore how we scale effectively," Heaf said. Bath & Body Works has suffered a bruising year. Stock is down over 40% since the end of May 2024. Earlier this year, it forecast annual sales generally below predictions, citing uncertainty about President Donald Trump 's tariffs. Before that, when the company's market capitalization fell to about $6.6 billion in September, it was removed from the S&P 500, which at the time required a market cap of at least $18 billion. It was instead moved to the S&P SmallCap 600. "Bath & Body Works is no longer representative of the large-cap market space," the stock market index provider said in a statement. The beauty chain operates 1,900 stores in the US and Canada, and 524 international franchised locations. 14 new stores internationally were opened during the last quarter. 19 stores were closed, predominantly in the United States. "Our international expansion plans for 2025 remain on track with at least 30 planned net new store openings," Heaf said in the call. Eva Boratto, chief financial officer, said Bath & Body Works' guidance for this fiscal year includes the anticipated impact of tariffs and the predicted financial effects of the CEO transition. The company has maintained its guidance for 2025 of 1% to 3% growth in net sales.
Yahoo
30-05-2025
- Business
- Yahoo
Bath & Body Works Inc (BBWI) Q1 2025 Earnings Call Highlights: Strong Sales Growth and ...
Net Sales: Increased by 3%, reaching $1.4 billion, at the high end of guidance. Earnings Per Diluted Share: $0.49, exceeding the high end of the range. Gross Profit Rate: 45.4%, an increase of 160 basis points compared to the prior year. Operating Income: $209 million, representing 14.7% of net sales, an improvement of 120 basis points versus prior year. Inventory: Ended the first quarter with total inventory up 7% compared to the prior year. Store Openings and Closures: Opened 13 new North American stores and closed 8 stores; internationally, opened 14 new stores and closed 19 stores. International Sales: Grew approximately 10% in the quarter. Loyalty Program: Approximately 39 million active loyalty customers, up 4% compared to the prior year. Free Cash Flow: Expectations remain in the range of $750 million to $850 million for the year. Share Repurchases: Repurchased 4.3 million shares for $135 million at an average price of $31.24 per share. Warning! GuruFocus has detected 4 Warning Signs with BBWI. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bath & Body Works Inc (NYSE:BBWI) reported a 3% increase in net sales, reaching the high end of their guidance range. The company exceeded expectations with earnings per diluted share of $0.49, surpassing the high end of their range. The Disney collaboration was a significant success, exceeding expectations and driving strong consumer engagement. The loyalty program is performing well, with approximately 39 million active members, contributing to increased spend and trip frequency. International retail sales grew approximately 10% in the quarter, highlighting potential for further global expansion. Direct net sales decreased by 4.3% compared to last year, indicating challenges in the digital sales channel. The company faces tariff-related costs impacting inventory levels, which are expected to remain elevated in the first half of the year. SG&A expenses were slightly higher than expected due to incremental investments in marketing and store associate training. The candle market remains pressured, affecting growth in the Home Fragrance category. The company is still in the early stages of developing a clear strategy for international expansion and alternative distribution channels. Q: Daniel, what attracted you to Bath & Body Works, and what are your early observations about the company's opportunities and challenges? A: Daniel Heaf, CEO: I was drawn to Bath & Body Works because of its strong emotional connection with consumers and its robust business foundation, including 1,900 stores and 39 million loyalty members. My philosophy is to put the consumer at the center, creating innovative products and telling compelling brand stories. I see opportunities to consistently apply this philosophy to attract new consumers and accelerate growth. Q: Can you elaborate on the company's growth strategy and any investments required to achieve it? A: Daniel Heaf, CEO: Our strategy will focus on fewer, bolder priorities, targeting consistent and repeatable growth drivers. We will provide a clear roadmap and KPIs for tracking progress. Key areas include digital refresh, packaging, alternative distribution, and international expansion. We aim to grow both the top and bottom lines simultaneously, focusing investments on the greatest opportunities. Q: What are your plans for marketing and international expansion? A: Daniel Heaf, CEO: We aim to connect more emotionally with consumers, focusing less on price and more on compelling stories. Internationally, we see significant growth opportunities and will prioritize markets with the right business models. We plan to explore new distribution channels to reach new consumers. Q: How do you view the potential for growth in the Home Fragrance and Body Care categories? A: Eva Boratto, CFO: We expect Body Care to grow more than low single digits over time, aligning with market growth. The candle market is currently pressured, but we are innovating to drive growth in Home Fragrance. Gifting has shown strong growth, reinforcing our position as a gifting destination year-round. Q: How are you approaching capital allocation and the balance between returning capital to shareholders and funding growth initiatives? A: Daniel Heaf, CEO: It's early days, but my focus is on ensuring current investments are directed towards priority growth areas. We will work with the Board to evaluate capital allocation strategies, balancing shareholder returns with funding for strategic growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
