Bath & Body Works' semi-annual sale 'fell short' as stores didn't signal a major event

Bath & Body Works reported second-quarter 2024 net sales of $1.5 billion, down 2.1% from the year before and in line with its guidance; net income rose 54% to $152 million. On an earnings call CEO Gina Boswell said the semi-annual sale 'fell short of our expectations'. Without its impact, net sales would have been down 1%, Retail Dive reported on 4 September 2024.

President Julie Rosen said the sale 'didn't really resonate with customers the way it usually does because the store and the marketing didn't clearly convey that this was a tentpole, major sale event'. It was 'mostly positioned at the front of the store' and 'didn't really scream sale across the entire store'. She said the timing and duration matched the previous year, but 'the customer was not quite there in the mindset of a full-on sale'.

The company adjusted its messaging and floor sets during the event, which slightly improved performance. Executives said they were reviewing the event's timing, marketing and merchandising for next year. Piper Sandler analysts noted that store presentation and marketing had been cited before as the reason for softer demand, but margins exceeded expectations.

In-store presentation put the sale mostly at the front of the store rather than across the whole store, per Rosen.

Marketing and store signage didn't convey that this was a major sale event, according to the company's own account.

The timing and duration were unchanged from last year, so the company said customers weren't in a full-sale mindset this time.

The event touched every product category, so the shortfall appeared across the business.

A recurring sale works only if customers are told it is the big one. Keeping the same timing and duration doesn't help if the store floor and marketing look routine.

Bath & Body Works adjusted the sale's messaging and floor sets in-season for a slight improvement, and said it would evolve the event for next year. It raised its 2024 cost-savings guidance from $100 million to $130 million and its two-year savings target from $200 million to $280 million.