Bath & Body Works is experiencing renewed growth in its e-commerce sector, marking a recovery after stagnation since 2021. This improvement was confirmed by company executives during an earnings call held on Wednesday. The company’s digital business saw a rise in the second quarter, reversing the previous trend.
Revival of Digital Sales
CEO Daniel Heaf emphasised the role of the digital platform as more than just a transactional space, describing it as a medium to narrate the brand’s story. During the first quarter, a rise of approximately 10% was noted in conversion rates among new customers, indicating initial success in expanding the brand’s online reach.
Further advancement was seen in the second quarter, with the company’s digital sector achieving a four percentage point improvement compared to the first quarter. This progress is attributed to ongoing investment in technology and customer engagement strategies, as stated by interim CFO Tom Javitch.
Long-term Digital Strategy
Despite these positive signs, CEO Daniel Heaf stressed that a single quarter’s performance does not equate to a digital turnaround but expressed optimism about achieving sustained growth. He foresees that an enhanced digital experience will ultimately boost overall traffic and conversion rates across all company channels. Heaf also reassured that Bath & Body Works is equipped with a robust digital team, showcasing confidence in the business’s online potential.
Financial Outlook
In the second quarter, despite a 2.3% decline in net sales year-over-year to $1.5 billion, the results exceeded the company’s expectations. Looking ahead, Bath & Body Works forecasts its full-year net sales to decrease between 2.5% to 4%. Nonetheless, the company anticipates ongoing e-commerce growth from the latter half of the year extending through to 2027.
Reporting based on coverage first published by retaildive.com.