About Bath & Body Works

Bath & Body Works, Inc. engages in the specialty retail business. The company focuses on home fragrance, body care and soaps and sanitizer products operating under the Bath & Body Works, White Barn and other brand names. The company strives to make the world a brighter, happier place through the power of fragrance. The company is home to America’s Favorite Fragrances and offers a breadth of exclusive fragrances for the body and home, including top-selling collections for fine fragrance mist, body lotion and body cream, 3-wick candles, home fragrance diffusers and liquid hand soap. The company intends to build and transform an already strong foundation into a leading global omnichannel personal care and home fragrance brand. The company’s merchandise is sold through company-operated stores and e-commerce sites in the United States of America (U.S.) and Canada; and stores and e-commerce sites in more than 45 other countries operating under franchise, license and wholesale arrangements. Real Estate Company-operated Stores The company has a diversified store portfolio in the U.S. and Canada across venue tiers and types, with approximately half of its stores located off-mall. The company is continuing its off-mall expansion to limit its exposure to vulnerable mall locations. As a result of its strong brand and established retail presence, the company has been able to lease high-traffic locations in most retail centers in which it operates. The company proactively manages its stores and adjusts its investment levels based on individual store and fleet performance. Strategy The key elements of the company’s strategy include expanding its customer base and customer spend; optimizing its product offering; expanding its international business; and advancing its omnichannel capabilities. Distribution Most of the company’s merchandise is produced in the U.S. and is shipped to its distribution centers in the Columbus, Ohio area. In addition to the company-operated distribution centers, it utilizes third-party logistics providers to warehouse and distribute product throughout North America. The company proactively evaluates its distribution channels to ensure it is able to provide the right product at the right place to meet or exceed its customers’ expectations. The company’s policy is to maintain sufficient quantities of inventories on hand in its retail stores, fulfillment centers and distribution centers to enable it to meet customer demand. Seasonality The company’s operations are seasonal in nature and consist of two principal selling seasons: Spring (the first and second quarters) and Fall (the third and fourth quarters). The fourth quarter (year ended January 28, 2023), including the holiday season, typically accounts for approximately one-third of its net sales and is its most profitable quarter. Accordingly, cash requirements are highest in the third quarter as its inventories build in advance of the holiday season. History The company was founded in 1963. The company was incorporated in 1982. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in 2021.