Dive Brief:
- After not growing its e-commerce business since 2021, Bath & Body Works is seeing clear signs of progress in the channel, executives said on a Wednesday earnings call with analysts.
- The retailer’s digital business returned to growth in the second quarter.
- “Digital is not just a place to transact. It’s a place to tell the story of our brand,” CEO Daniel Heaf said.
Dive Insight:
Bath & Body Works has been on a mission to strengthen its digital presence in order to extend its reach to new and lapsed customers.
The company began seeing around a 10% improvement in conversion rates among new shoppers in Q1.
Some additional results became evident in Q2, where the retailer’s digital business improved four percentage points from the previous quarter.
Improved digital conversion rates have been supported by the company’s ongoing investments in its tech capabilities and customer engagement, according to interim CFO Tom Javitch.
Although the company is pleased with the progress it has made with its digital efforts, “one quarter doesn’t make a digital turnaround,” Heaf said. But the executive thinks that a better overall digital experience will, over time, drive traffic and conversion across all of the company’s channels.
The CEO added that the company has a strong digital team on staff.
“I’m really bullish on the digital opportunity for this business,” he said. Bath & Body Works expects to see growth in the channel in the back half of the year through 2027.
In the second quarter, net sales were down 2.3% year over year to $1.5 billion, beating the company’s expectations. The company narrowed its full-year net sales guidance, which is now expected to decrease between 2.5% to 4%.
