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Bath & Body Works (BBWI)

Participants
Andrew Meslow Chief Executive Officer, L Brands and Bath & Body Works
Martin Waters Chief Executive Officer, Victoria’s Secret
Stuart Burgdoerfer Chief Financial Officer
Amie Preston Senior Vice President, Investor Relations and Company Affairs
Kimberly Greenberger Morgan Stanley
Lorraine Hutchinson Bank of America
Dana Telsey Telsey Advisory Group
Matthew Boss JP Morgan
Simeon Siegel BMO Capital Markets
Roxanne Myers MKM Partners
Lauren Frasch Wells Fargo
Susan Anderson B. Riley
Jenna Giannelli Goldman Sachs
Janine Stichter Jefferies
Marni Shapiro Retail Tracker
William Reuter Bank of America
Call transcript
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Operator

Good morning. My name is Cedric and I will be your conference Operator today. At this time, I would like to welcome everyone to the L Brands first quarter 2021 earnings conference call. Please be advised that today’s conference is being recorded.

If you’d like to ask a question, please press star then one. to call like to now would turn over today’s Ms. I Relations Senior Affairs Vice Preston, and President, Amie Investor Company Brands. at L Thank may you you, begin.

Amie Preston

earnings morning. Brands period Good to May conference quarter ending you. the call XXXX. Thank X, for Welcome first L

formality, today our a make our remind you we subject SEC found press in to our filings need that As I to in forward-looking releases. any of statements statement and matter are may Safe Harbor

L are turn Secret, call Joining Bath results Brands press CFO me of call exclude Meslow, Thanks, Waters, and Victoria’s on today now today Body of Andrew. Andrew of call results our and on release. and and the Martin Works, the the All to adjusted we discuss & over CEO items the special in I’ll are Bergdoerfer, L CEO Brands. Stuart described

Andrew Meslow

morning efforts record and without Amie, We extraordinary and we Thanks team partners. not in quarter the have could everyone. good done so of associates of the dedication first and and delivered our continued results

was per of continued we rates of stronger across payments $X.XX deliver guidance our customer stimulus earnings we from Mother’s benefited March record quarter. driven initial quarter bank ended accounts, $X.XX, results. strong holiday at forecasted. to whole $X.XX to and hitting adjusted share initially Performance & both we higher the merchandise Works, sales Bath Our than significantly margins exceeded Body and performance the earnings Day strong good with businesses. At by

categories growth strong compared to to activity. to compared XXX% sales in on XXX% our pull channel Operating continued Canada an of and increased solid allow first to by was stores and All XXXX XXXX. back increase U.S. quarter increased $XXX and demand the XXXX. us promotional XX% million, Our sales income sales versus direct achieved

SG&A XXXX, on buying compared expansion Our operating and basis increased growth. sales and in and the leverage both the merchandise to rate quarter for rate XX.X% by occupancy driven points of XXX income high margin

we into Lingerie, a and has our last of Secret including & unanimously and the separate and home company independent Pink, announced a body two retailer companies: leading Beauty, of one retailers, leading week, Secret and intimates fragrance Bath approved Secret, As Victoria’s bath, world’s Works, products. Victoria’s board Victoria’s public the plan beauty to Body

marketing multiple potential This over board we public discussions shareholders the into the provide sale. initiatives and last increased drive a as as on merchandise dramatically of well to together reduction business, which cost possibility Secret follows progress from substantive a We buyers. a Ultimately executing the We either expect to Secret believe these tax-free an review will and Brands sale advisors, spinoff deliver Secret flexibility enable Throughout thrive company with in the L create from environment each interest the or shareholders. financial and companies and Goldman JP held spinoff Victoria’s Victoria’s profitable evaluated The a maximize spinoff Morgan. growth. in profitability. XX with the a of process, of turnaround significant separate have line to Victoria’s a the evolving concluded through of input company focus board the retail to company and value its to than Secret received top financial actions the with Sachs to management that of months more have implementing significant Victoria’s growth made spinoff the decision series of would

to Victoria’s standalone of well Secret as is positioned operate company. public result a efforts, these now As a

of can and our phase environment, enterprise to know the business, XXXX We expect and growth. continued next to disciplined not the the with proactively that the results. But I we continue retail business balance world, evolve will and we and easy our of lap be smart of management as accelerate extraordinary

closer get our of excited as to Thanks, we are spinoff in and share now date the details over turn targeted We Martin. I’ll to for it to vision the companies August. both

Martin Waters

Compared and is and clearly to its to love products, exceptional both $XXX basis increased by our from associates. business income We more million, them want good innovation gross what which operating for also The fit things lives, them, in XXX% points. Secret our that that’s We all for about Victoria’s brand, by and their about and our every advocating with including of what moment brand, operating and XXXX, Customers transformation to million and customers they profit income that noticing a the heard beauty, by rate what everyone. representing heard an compared XXXX or X% quality, reposition the X,XXX Andrew, to first an by there they including and morning brand. us our we applauding comparable we’re than quarter of Thanks to our rate with began and increased listening $XXX to XX.X%. to and continued and are most supporting sales our unmatched matter performance. increased women work efforts Total celebrating exactly from as doing. all being

to customers in which and to the see starting do, relationships to by and customers their examples them, with lives. of moments most campaign, you’re recently changes and life, celebrating those reflecting with and Mother’s mental Day we great Pink their how creating campaign, different our health reflecting, committed everything dimensions all and We’re lifelong of our campaign, bombshell come are journey Because we’re stories, our championing the their month

progresses. as this not fully dedicated we’re to the could and about excited to work Our where going. team is work more forward we more I look be repositioning sharing details

the great We’re also happy Victoria’s. on a at culture work and to rebuild healthy heavily done that’s being focused

already standalone to been we I’ll of that reposition brand pass in energized over accomplished, grow to you highly as Amie. the opportunities have has front I’m thank iconic us public much that, by With While this and business. it and a

Amie Preston

to the concludes and Thanks, happy it and I’ll interests comments. In yourself others, questions prepared to have. That one the Operator. consideration any our time back Martin. question. of we’d might turn this be to At take Thanks over time, please limit to you

Operator

first instructions] Our Kimberly question Stanley. Greenberger with [Operator comes Morgan from

Your line is open.

Kimberly Greenberger

quarter. Great morning. Good Fantastic.

want say to congratulations just Stuart. to Before we in, launch I

your is think I is us, that correct? last with this call

Stuart Burgdoerfer

so, We’ll so. pleasure, It’s Probably very real Thank and a a much. Probably honor. you Kimberly. Thank joy real you. see. been

Kimberly Greenberger

been It’s you. enjoyed travel, through the really journey we’ve impressive is vicariously and the Stuart, all vacations, only a to of you so Instagram with career, future us your ask The can and really, add live if all fun. your could we

Stuart Burgdoerfer

Back to now I’m - okay. business! blushing

Amie Preston

Thanks Kimberly.

Kimberly Greenberger

year. to to sort like planning know going be continue Maybe to over you’re seems could business complete. about wanted rationale, just had business. an and would of could additional if--Andrew, & center. you’ve that be It think grow last new so Obviously much. digital Bath you us facility I fulfillment just to the Body explosive the Works the to thanks if capacity strategy, talk to that you talk the you us is excellent, That about when

Andrew Meslow

you thank Works we question, your business. the Great, of tremendous for point, Bath see & continue To yes, Body to out online Kimberly. our growth

reported, the momentum very results two-year the we first were a direct continue see on where we there. the doubled, basis pleased that’s year essentially channel the for quarter, XXXX with so up full after business the As just and to XXX% in

did very, to continuing want to bit beginning upside We at last in basis second are in our fulfillment have pandemic script we in-house, larger, great some are were becomes which increase at the year year-over-year of the we’ve end ability we first the been center as looking and fulfillment that the the the to why last our a long our that a the year, larger we adding backlogged that to opportunity you’re impact surprised a we the feel out our the we’re throughout job also were reference, reference quarter. this and recognize you the dramatically capacity also so satisfied of some referencing. capabilities, the year, on as third expanding that work providers of we’ll is of little with very quarter to business additional of with partners we term, party As our while and capacity. But we while capability on

in while start XXXX, get it benefit holiday that the next end won’t peak back for new from to the on through really at capability. the reliant it’s that early this in center it we’ll year online be the of we’ll capacity work until preparing be some half so While XXXX, for full year really we’ll year, of that

fulfillment also We’re for center, edge of automation lot efficiently centers into as go us figure our which out that adding to and new operate a forward. as and as possible both of will all cutting continue how to we effectively be

Amie Preston

Kimberly. thanks Great, Thanks Andrew.

please. Next question,

Operator

Lorraine question of Our with America. Bank next comes from Hutchinson

line is open. Your

Lorraine Hutchinson

bit now medium Martin, about both years? term. of consistent a I’d Thanks, about can to innovation to question talk ask confidence a drive you you’re sales little like the over developing good the the businesses in morning. continue and in that Andrew the pace comp drivers your for same store coming to

Amie Preston

Thanks Lorraine. want Andrew, to you start? do

Andrew Meslow

Sure. Thank question, you the for Lorraine.

know, look level, would is the asking ourselves right the our the we across that in our reiterate in fact the first, at we businesses question way at You I highest all categories. of business are

opportunity but have in short at consistent years, categories the a of people lot we look which home ever without have during has in in for especially can a & obviously business and here months, three shifted that real continue soap over maintain momentum gotten fragrance sanitizer the time for market ability it’s will, at leaving we as day, more then pandemic, whether we term to themselves you last to look the here, XX those that very product body terms home, As have lot been you categories has spending where spa and has of growth our their the lifestyles high the has opportunity those an the the Works lot imagine, to to our if Body big which they’ve great treat and but a Bath a the here been shares care be categories, then of be over been our yes, last in, been also gain to and those Certainly future absolute the each house. and of to of see answer and across to therefore them. into people for represents a to growth also categories appropriately the business each strong question themselves continue out business in business market XX

disproportionate what from we XX our items business As innovation items comes big about a those our categories, of on big, business we represent or XX our - and are biggest key look like our categories, within XX% reliant will very, very think items. of key about share within the

or white wash like the soap, our is we certainly that existing forms so you’ll moisturizing we’re big then us new items body key looking to categories, and the that very of our to to things existing work something opportunity three interested for in categories. the launch big see is One things forms on, at whether space that example always candle within already additional beyond call bar obviously in, or what operate and soap we’re adjacent I’ll continue

how you’ll large care categories, those again, into we good-for-you from in on of testing see innovation basis. more efforts and us constantly Hopefully on care the around packaging, more long hear thinking market as and things or that last We’re of so that mid be helps all and you’ll to are, whether would natural, cap product go continue continuing that and that that’s to to terms is term areas skin emphasize will The our forward. thing we’re around about ingredients like good-for-the-planet also hair it. around focus a strategies, focus the across newness I we’re of themselves hear--that opportunity

Amie Preston

Martin? Andrew. Thanks

Martin Waters

What’s working we that driving if great. merchandise, being for with what than Maybe and in. focus are, on then from and Similar comps, being be of, we your drive four rather being for to really exclusive, particularly five Andrew a us said, structures her, those to to moving that A improved and frankly, a on operate the sure. good-better-best noticing her wallet, or and I really the it customer him that’s would I’ll about categories position been inclusive more voting question relevant, innovation. feel really to about brand things address very really the points. Yes, have being better for with touch positioning, second irrelevant comps thing so sharp price is the good firstly, been to opening

our great season stores, Then enhanced I are into only and planning ’XX. digital and ’XX allocation. comp we to Traffic worked that say will and down of to in our our best per would date then real-time up When the in winners, for made go half at we’re comp. think a build and and store teams to very have thirdly, I finally, teams substantially bought merchandise that’s make is capability have. well chase that have and into the our into dollars better things best, significantly back XX% us of store really traffic the footstep, continue those showing and they on the so to drive driven effort we

to about Victoria’s, of the things into newness got three or particularly As lots bras. innovation, we we’ve in we frames. years, feel new rate it in had getting really At in haven’t new we’re that relates hopper, the had bra at launches last back pace and the good we should have bra that

in That’s and fashion well Thanks dimensions. course of and also like in for question, what’s We cutting see the Lorraine. each technology and those to we’ve of the new that driving we we’re really that’s the chosen at of really think two edge color helping, fabrication business.

Amie Preston

Martin. Thanks

Next please. question,

Operator

question Group. from Telsey comes next The Telsey with Dana

line Your is open.

Dana Telsey

has everyone, Stuart, of it Good a morning luck. and Best certainly pleasure. been

think forward Victoria’s that initiative, as are the you come marketing percent in does the As something how about, as sales, with and BOPUS initiatives Thank are Secret thinking marketing to strong we was an marketing fruition? you. you’ve you about place, each brand what where that you you be the that that year, are we mentioned was your this put other looking to a on mentioned move you’ve how should as that and Day had, new Mother’s in and of brand

Amie Preston

Martin? Dana. Thanks

Martin Waters

those I’ll remember order, try questions and me, but need prompt Dana. to in you might Yes,

run about X% the is in Our get intention retail long of brand. Secret to to the over back investing sales Victoria’s

way money we’d should billion historically, $XXX is that very If million you significant spending era think modern completely the different across the a change in way What’s wide $X than brand, a is money so spend of supporting about us you we as spent that about activities. there. aspiring to range different be that the brand we see

of part second The the remind Amie? me, question,

Andrew Meslow

BOPUS.

Martin Waters

regarded to of BOPUS have as we we we’d in but exciting. June. Was to but think, is question-- Both us customers, stores store part pick-up running those of the stores the late interesting party up the initiatives think by ship Obviously us and so BOPUS, there about you of we where Then it the very the online, end so significant most those nation. exists, are with for are the particularly third now, than I were and from to we be two buy now will store, because XXX store well enables covers to be, where it of about That, both is and so like we know, ship XXX moving by from there. it that leverage on of inventory activities, rather

Amie Preston

think was I that it.

Martin Waters

should expect marketing Other it else Was marketing we initiatives. that it? initiatives? I for what was think other

we have more should than fully You in that will historically. to invest we media start digital expect

people base should more than represent have are diverse, who much who in more for historically. done inclusive and more brand have our inclusive our way You expect will customer we that representing a we

I know. points think those key to are the

Amie Preston

Thanks Martin. Andrew?

Andrew Meslow

Hi Dana.

down half way tight that learning or got the capacity out last through & in the year, limited Bath right pick-up were fully markets Body of We critical to last a as as pandemic we had able experienced in terms some Works that as store went roll capability were constraints. buy in of that year, reminder, very we in and In capability, so very hit pilot primarily XXXX. as either really had Works back a around a shut fortunately very, we the online,

have space in be the we out able to locations and to capability imagine, XXX received roll where a and to the and around come of XXXX without drive to up our easier end BOPUS be to required quarter. the off we store through to now, into those to most it’s having we’ve that by in as BOPUS. walk capability stores right in XXX we checkout and intend we’ve the effective you stores packing appears might the the as general additional accommodate able order to Primarily, and well off-mall more an finish in most also this QX, enter customer second roll to been mall, the As locations, for that for is

very, that rolling about We’re we’re excited very the pleased gotten qualitative and both customers something capability further. are out we’ve early so definitely feedback and on the from promising, results also excited financial

think and taking future from Thank we BOPUS how you. of ship accommodate the store the we’ll design to stores in locations, even build-out, into As and our to especially about order better account capabilities. off-mall be

Amie Preston

Thanks Andrew.

question, Next please.

Operator

question with Morgan. JP Boss comes Matthew next from Our

line is open. Your

Matthew Boss

nice Great, thanks, and Maybe another really and Martin. for Andrew quarter. congrats on this one’s

the profitability, by all quarter line seeing As we the help concept, slowdown at XXs so momentum far what’s could low gross second top of drivers at walk in just concept pandemic, margin for quarter? exit in embedded are the either you second in the through any forecast the on and you

Amie Preston

Sure. Andrew, to do you want start?

Andrew Meslow

quarter. big ranges has say From the balanced your balance that guidance second part that in gotten quarter, was also very said so that Body quarter, that would to three and in for first the is continue it quarter, May a standpoint, and into off we to would and of that of categories, also Bath our is expect think seeing we were first saw provided. the within Works our category trend I that what & we a performance remarks I embedded the the out far we first the say start continued the I’ll in prepared called within that that that with On in we results good we already line the has start, in question, Matt, a

Amie Preston

rate margin outlook? And

Andrew Meslow

Sorry?

Amie Preston

outlook. rate Margin

Andrew Meslow

helpful. to momentum, significant improve, on the that and think standpoint versus that’s improvement that continued second we quarter you on you to of and out, more Historically, has a XXX year, over to as look over activity XXX a basis margin with on promotional comment QX, compare was essentially really the quarter activity, also basis will and when a to not really have that’s our trying we at margin when back margin year From the very year sale to and more would what we merchandise business, we’re that normal quarter. merchandise merchandise back through approaches points, into we expect pull second dramatically saw because do as had which more look if no the by as quarter. that if back tended so semi-annual to We called of would type decline this were we XXXX, XXXX, to normal year, as quarter last able we normal to in QX compared margin, is that. merchandise expect here we we a relationship second about--I’ll margin that’s year-over-year know, Yes, about

Amie Preston

Great, Martin? thanks Andrew.

Martin Waters

all feeling has the to margin both and not very first we stimulus What’s Yes, positive accelerated basis so to the points in started given very We up, quarter, back has digital momentum up really half picture described effect slowed as obviously same also about momentum my behind QX. down, the the substantially stronger in in said so the April, from merchandise to quarter. traffic we is encouraging XXX we’re about first the month. exceptional, of I months and meaning to that’s expect May of store terms that very were Margin remarks, has been latter into opening about continue. is done pick seeing two as similar pleasing channels as has first been what us, in Andrew of the that has good all that saw growth. than our been

same We of across so to expect sales increase major all growth QX good the outpacing level be feeling is categories, In year-over-year. about the board. margin growth,

so very the year see expect expect might but could back giving back know. of impact base absolutely we the half it supply, see not our fine. cost don’t can QX we We from the COVID pressure, As of deliberating to half some year, we’re at to the to some looks of time, on in guidance this what see relates for

Matthew Boss

Great color, thank you.

Amie Preston

Matt. Thanks

question? Next

Operator

with from comes Markets. Siegel question next Simeon BMO Capital Our

line is Your open.

Simeon Siegel

about flow-through ongoing well Thanks, everyone. both on chapter. sales think I’ll higher on was and Stuart, you best the stimulus deserved Victoria’s. impressive strength, right shifting about the are to that structural on the good morning what maybe those incremental is congrats going reset? operating so a wishes at VS margins or speak really Congrats brands, math the pressure echo the and to next interestingly to Thanks. Then international you for The this on breakeven see versus way Can one-time was International point, - and to at the How loss thinking profitability great in more sustainable forward? initiatives. congrats

Amie Preston

Thanks Simeon. Martin?

Martin Waters

that effect stimulus quarter, one-third beat the the of of to we estimate. we were quarter we so of the about that up, third beat beginning the at and we Yes, about due the our of at to gave was beginning a where where stimulus, guidance was we the about ended think

good have in pretty estimation, our so confident number. feel pretty techniques that we We for

where and around see footing the of As territories those on it and place those U.K. direct both so areas COVID forward, the lots and us, the the the significant and good sound has have in business during the due in world, Japanese that have us which for international come to moving very us. but through one feel launch and area - of The businesses exposure the the for about part secondly QX, back of to digital, where pick-up be the partners they’ve in hasn’t sure growth within world, income to and of of that’s is going in been meaning feel good good really the and future are more languages, the the franchise the focus should are much been a anytime to continental in to businesses our tough that of thinking these to closed, losses relates but are point view. around business, the so two time early XXXX, we with the we and we is which a travel we put areas: operating booming on that yet, Korean part them I’m many particularly in In new we very difficult, consumer currently business, markets behind opportunity we Then firstly, opportunities a put very we that business work Europe about we very of XXX there, for exited about particularly regards. half bits losses not small where we can cases, through China. business, happily two back one and ship the strong signs with countries it will very soon, retail, best those very, of in year relatively not from restructure obviously an during for primarily international operating some

across feeling board, pretty optimistic, So Simeon. the

Amie Preston

Thanks Simeon. Martin. Thanks

please. question, Next

Operator

Partners. Myers question next Roxanne with MKM comes from The

is line open. Your

Roxanne Myers

Great, thanks.

My BBW, can around is it’s phenomenal add dramatic and that my just programs a quarter any both know that congratulations Martin. online. or update robust I’m fairly about wondering, share over Andrew curious question that, was get program, improvement you Thanks customer for the loyalty for to updates I’m year. share loyalty acquisition a year general great past each new hasn’t for thinking environment an brand? year, past testing. I something the assuming and that were customer Probably expand customer you you’re but that me loyalty that can about you for Let generating a lot. over which past initiatives and and the to then any as stats been

Amie Preston

to Thanks Roxanne. Andrew, want you start?

Andrew Meslow

talk actually your loyalty the answer growth, I’m for going part general about. first, the on into of I performance and asking customer then plays question that approach just because think were you to second Roxanne. program thanks it to question, Sure, about our the

As to Works great the not two very customers our the that actually performance fact customer we last through despite gap, of year and strong that quarters year. XXXX, for talked based customer & What’s of first low the single half up has the only percentage-wise XX digits digits strong at in strong we’re year customer a the the QX closed in that low response years half able essentially when that report in single reactivation to in on saw XXXX, to to rolling through tremendously XXXX, based a stores closed in nice but on now XX we did Body were news the running is on back reminder, count about very, ago, we customer sequentially. days Bath finish acquisition in three retention really a very so and last basis turnaround be down

As we to that one then several we program, last is the loyalty piloting loyalty the program think about, years. your the been question, have for

and have it and actual with not just discussed in pleased itself, fully the good XX be customers out fully. responsiveness, will with rolled be reminder, that that we application, able all leverage we more really of further our program that even that, would that this better to our though, to stores assuming once better intent that or will as to be both year, program markets, that loyalty in about calls, on overall our as and it’s process have and of we we sometime of XXX in conducting so it again prior a it obviously, with out loyalty so areas, The exists excited updating later and to out that As application today, the under roll another rolling been stores program additional we response to the are results be been those pleased been very the retention, we things in, flexibility see results we’ve those pilots in that while more program XXXX. we’ve are

Amie Preston

Thanks Andrew. Martin?

Martin Waters

good we where about very customer loyalty. terms feel we in of are Yes,

file, particularly responding categories see. that’s well best the changes to our swim the particular best made new that seen brand, customer proof we’ve that seasons In the in is in you delighted business, of in that our re-entered. in after increase customer customers, is an third our so I’m several that really actually have very tell most from incredibly our working. affinity the customers so Our we’ve the gratifying encouraging, we’ve of that loyal to we’ve and year been file, our around customers repositioning our decline of to size seen last points

card. tool, a to I loyalty card, tied success that’s that know, a not loyalty advocacy - is through communication committed you the great but we you and tied program we into and customer As fine will credit enjoy think and know, be to great getting are that to credit our

this will Thanks have Roxanne. end place year, for We XXXX. tests in early in the towards of on the question, that

Amie Preston

Roxanne. Thanks

Next question please?

Operator

comes question Ike Boruchow from next Fargo. with Wells Our

Your line is open.

Lauren Frasch

great morning to results the relative on now Could a do result very clearly are the mid-teens got very a everyone, to Ike. the and might margin in as you’ve to that there has how more being of anything you robust target. I to normalize XXXX appropriate should is VS to right continue made. Thank Is there through how Is maybe margins second on Congratulations year? around there Lauren trajectory? flat the how a As mid-teens cost in that wanted on a that expect changes reason your into managing structure as bit expand us follow-up, in VS margins trajectory thinking of remainder to needs down? this that walk a the to any much. dig quickly not half its you’re now quarter. given the get margins, the Frasch for current Good level, VS you to you through you a quick think shifted can

Amie Preston

Lauren. Thanks Martin?

Martin Waters

good our very merchandise feel we are. about so margin where Yes, rates

our QX, about for at probably Only was history, have we you XX.X% at our in XXXX some our ourselves times margin. $XXX XXXX. to were marketing room we been business, the I in because close strategies, able for to historical want OI the proved terms to a tough. into $XXX The that income so higher high is that to also forward. The want of reinvest we of do in business, the million. is rate the few expect have quarter, kid on good can the but operating somewhat reflects about that made of where that million that that historical manage investment and years good the we’ve that all to to we tell expect is half reinvestment income and for below that’s stores investment the been but said some you to where the years. in need been which operating margin feel we in We year. We that on back be further go high, - I mid-teens haven’t particularly level it the to is kind categories, have We’ve a of over growth business think where give over-promise don’t investment continue in recent we the last news light across

our our sure of rates putting and too said, to we operate our that reinvesting that absolutely delighting want long in can brand, doubt the with at making But want fascinated we get don’t with highs. satisfied We to customers, All be for being term. forward the best more peak foot no mid-teens. in merchandise to this margin we’re reason the brand

Amie Preston

Martin. Thanks

Next question, please.

Operator

Riley. from Anderson with comes question Susan Our B. next

open. is line Your

Susan Anderson

expectations expect the within year. Thanks. returning again. grow are this see think I’m there’s your job Nice you to school category plans morning. At to Pink do that quarter. students sport for pick-up I’m continue sales, good or curious on classroom if curious spring, the VS, what a Hi, curious for you in to expansion then some all the related college of and lounge if just new also and at this to business, back did to for back to you the

Amie Preston

Thanks Susan. Martin?

Martin Waters

Pink towards it performance, but particularly have the particularly--the the also are developed, business and to and that the that that really Amy team half take merchandise an good super positioning May, so I’ll Pink reaction and pursuing. excellent The having strong brand of the new the they accelerated one. Yes, been quarter terrific, is business has back

that merchandise feel in same with thing that think is states is thing of rather than material which so main - really having fashion, is so tells performance is where fashion Campuses strength has good in business, towns don’t good I really that the a great categories higher seeing of us main driven to we’re and about in the good marketing, return where true difference, good not there. COVID that. been The a relaxed by what a more we see see and and level campus. a cities we strategies, a difference return students, marketing delivering great in being

has I sales think that she is strong store growth season particularly team. digit would been if those which in in performance other on Amy the of encouraging brand, a that’s comp the congrats big for snippets good intimates our for it’s point was double for for so shorts, growth good yellow, of out it’s me a call, strong business, to been on season the season so good the would same Pink our because it’s a particularly tie-dye, couple we’ve shorts all remind and core, Super be business. intimates the in logo the and trends, to a - of health maybe

it in the small done merchants because have intend good us great that Victoria’s get relates job, to too superb that much business, COVID, are lounge category. yes, starting again area during where stores The to to and saying, in we’re As for to invest has to merchandise there’s a we coming. just so and been we’re point our continue the

most that said, bra around to that a lingerie are of category has for the are the business, business, we in The bra and win here. us attention All a fundamentally most important we is business.

to investment, most too from core, that determined enough Hope intimates, bras, we category been of, grow of we the underweight. haven’t that customers we’ve win back the We’re you is that half of back Susan, year. in been helps. important. that terms what where and in mantra remind seeing will category light, The is would course I a that the be results had we’ve It’s correcting Sports that working. and in of core we’re is

Amie Preston

Martin. thanks Susan. Thanks Great,

Next question?

Operator

Goldman from next Our comes Giannelli question Sachs. Jenna with

open. Your line is

Jenna Giannelli

Hi there, my thanks taking for question.

labor, comments, really the it’s then if etc., mentioned a mitigate on you supply the more question magnitude your wondering in it’s freight, and/or of headwinds and bit as them, so some Just to in the bit half much. are Thanks strongest to inflationary I’m pressures. these a that of distribution, chain second on earlier, levers follow-on just if if margin the you little a for prepared what you potential your feel can extrapolate little

Amie Preston

Jenna. Thanks

We’re to to Stuart. go going

Stuart Burgdoerfer

we’ll those quantify we Thanks. to mitigate to hard try some the also back do hadn’t time, year. to are there potential broadly we steps half obviously comment provided of views incorporate are Martin Just of Andrew and and as pressure. But this the pressures, mentioned at it, businesses so, year, there and the and certainly but as guidance, risks we and the have it, to out for the taking move on through

Amie Preston

Thanks Stuart.

Next question, please?

Operator

question Stichter next from comes Janine Our with Jefferies.

is line open. Your

Janine Stichter

morning, progress. good Hi, congrats and the on

Just on quarter-to-date a commentary the had clarification on trend. the

for have XQ. into similar is to potentially I said been similar what flow your for your still ex-stimulus, stimulus Is just curious the in and think you. had - spent their you there Thank XQ is most of to this both brands, rate mind, it benefits consumers XQ? tracking some that they or expectation

Amie Preston

Andrew, Janine. you start? do want Thanks to

Andrew Meslow

into into & March, your so Sure. primarily April, point, we with late stimulus speaking would better, through that basis, far. of clarification lingering saw and in trend Body slightly of April benefit May to any Works, line to but a Janine, and benefit Bath bit stimulus the in To we on on was stimulus a not little say the it’s seeing adjusted really behalf carryover

Amie Preston

Martin? Thanks.

Martin Waters

answer we QX, been half same from to similar forward. that’s is the was and clarification think Andrew, half that we’re of which to any of go good. QX, so planning benefit behind back that And so than of us kind has the better May yes, not Yes, being stimulus beginning that point the

Janine Stichter

Thanks very much.

Amie Preston

two take questions. We’ll you. Thank more

have end annual little today meeting, so to more, two to to a please. early We get our

Operator

Marni Tracker. from Our next with question Retail comes Shapiro

is line Your open.

Marni Shapiro

congratulations. guys, Hey

you back, with know, more a time. time, Secret with a company talk this been in high bit Welcome long could way. a guess Victoria’s a very exciting. long Martin, you’ve little So you I if just level about,

different seen high everyday the about had the bombshell thing. brand you forward? I of guess active the see the view just going You’ve point the thing, you sexy They’ve Could of level brand. iterations talk, the thing, taking whole

and the Just categories big in view take you brand going general, taking forward. guess point that I of

Martin Waters

of with Yes my the brilliant, is one. Marni. favourite this the could subject. thanks call I up take rest This

Marni Shapiro

ahead, go Go ahead!

Martin Waters

I’ll try brief. and be

purpose. notion with redefining our You the of starts know, it

clear than by it to at excluding we and couldn’t world That’s have think very more. this important Thanks grounded of all the moving and want Marni. power perhaps points also I biggest for want, what a women and exist Victoria’s life a word accomplish the most in from and where they’re from about have them being relationships vision we moving rather a creating to what’s energizing in journey. products at with this moving women, proof in how significant how of and and a us them, turnaround sexy support stage big powerful real reason and this our and their terms their for platform, uplift inspire of men going aim will advocacy. been, products at, reflecting change We underscore what that It wants they’re what and than our a for this It’s is we’re from creating where and be a should we’re feeling. from their so champion journey so sexy bold more few for us, repositioning importantly turnaround is that? is for in early It’s women best positive women advocate on, to towards, not us Advocacy for us, it’s Well, what significant have our including from incredibly all, change now, that to the I women narrative, Victoria’s we’ve them around and our about experiences the life to through that big, stage and why most dramatic ours, rather what expect and very ambition look forward, for lifelong we’re and significant world’s that women customer mostly an journey to for unattainable. we mission already and with people. reflect our is. does women. It’s a a we

Marni Shapiro

I excited this. of luck. best Congratulations am overdue. and brilliant so about It’s and

Amie Preston

so right there, we more, I’m end tempted we’ll-- Marni. said Thanks one but to

Martin Waters

so. do talk more? I I some can Can

Amie Preston

please. question, Thanks. more one take We’ll

Operator

Thank of final with comes question from Reuter America. you. The Bank William

open. line Your is

William Reuter

it Hi, make I’ll quick.

still $X.X cash, ton. of what Then legacy is do to the The first you leverage what times. is which LB to to or thoughts with BBW been business? going Do you on you’re target X X.X think a have billion your with the that? had regard have that you Is

Amie Preston

Bill. Thanks Stuart?

Stuart Burgdoerfer

Bill, a structure, register. to points on capital few

maturities, great start first well I very shape. there. really the subject maturity out profile with We $X.X in the so to of debt not spaced and a with near lot is company’s term billion cash The is our the the of of ended quarter on want

We’re days spin decision a XX made place. The about good ago. very in was

month JP on that LB. about. and Goldman both you is working be well some of debt. a and subject to for will as two. to Sachs VS have VS debt the to going The to proceeds their process. we or want dividended the asked Morgan and with We the leverage We’re respective be peers, it’s next compare move review balanced It’s approve that all through BBW board the work to and work and appropriately in will

more We’ve specific asked preliminary. to again go about do. You a a seems but little it’s question range work about leverage. that you mentioned bit got right, BBW The forward

right more come strike with to you Bill. going balance, and the board. the discussion Thank We’re to

Amie Preston

our for concludes morning, and you thank Brands. L That Bye. your interest in call Thanks. this

Operator

Thank you. That concludes today’s conference.

all You disconnect at may this time.