Although Q2 net sales declined, they came in better than expected as the company pushes forward with its transformation strategy.
The transformation blueprint that Bath & Body Works laid out last November is going to take time, but “we’re delivering against that strategy, and we are exactly where we expect it to be at this stage,” Heaf said.
The retailer has decided to completely exit home care, which includes its laundry and kitchen products. The category represents less than 1% of the company’s annual sales. A pullback on the laundry offering was first announced in the spring.
Yet, in the quarter the retailer embarked on some large initiatives to push its Consumer First Formula transformation strategy forward.
Those efforts included completing the largest merchandising project in a decade with stores, which included organizing scents by fragrance type and coordinating product walls around the categories of body care, hand soaps and home fragrance.
“We’re very aware that stores remain under pressure, and we don’t expect it to just improve by putting new products in there,” Heaf said. “We have got to do more to earn a visit.”
Earlier this summer, the company introduced its Fruit Fusion franchise with the aid of brand ambassador and creative partner Hilary Duff, which exceeded the company’s sales expectations this quarter. Bath & Body Works will add two new fragrances next quarter and will continue to invest in the line.
Fruit Fusion shows that the retailer has a willingness to push boundaries, according to Neil Saunders, managing director of GlobalData.
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