Bath & Body Works, Inc.

please be advised that today's conference is being recorded. During the question and answer portion, you may ask a question from the phone by pressing star 1. I'll now turn the call over to Luke Long, Vice President of Investor Relations. Luke, you may begin.

Good morning, and welcome to Bath & Body Works' first quarter 2025 earnings conference call. Joining me on the call today are Daniel Heath, Chief Executive Officer, and Eva Barado, Chief Financial Officer. In addition to this call and this morning's press release, we've posted a slide presentation on our website that summarizes the information in these prepared remarks, in addition to providing some related facts and figures regarding our operating performance and guidance. As a reminder, some of the comments today may include forward-looking statements related to future events and expectations. For factors that could cause the actual results to differ materially from these forward-looking statements, please refer to the risk factors in Bath & Body Works 2024 Form 10-K. Today's call also contains certain non-GAAP financial measures. Please refer to this morning's press release and supplemental materials for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measure. With that, I'll turn the call over to Daniel.

Hello, everyone, and thank you for joining us. I'm excited to be with you today for my first Bath & Body Works earnings call. I want to begin by thanking the board for their trust and confidence in me. I'd also like to thank Ava and the leadership team and the thousands of associates who have warmly welcomed me over the last few days. It is truly a privilege to lead a brand as beloved as Bath & Body Works, one that has an incredibly strong foundation and has a meaningful place in homes and in our customers' daily lives. With more than 50,000 dedicated associates working in our 1,900 vibrant North American stores, a vertically integrated, predominantly US-based supply chain, and a loyalty program with approximately 39 million members, we are well positioned for growth. But today's consumers are dynamic. We must meet them where they are, positioning ourselves as the leading global brand in home fragrance and beauty. With this backdrop, we see a clear opportunity to transform Bark and Body Works to accelerate our growth, deepen our customer connection, and continue evolving for the future. In my first 10 days, I have been incredibly energized by what I've seen. Our customers are passionate and loyal. Many of our highly engaged customers shop with us 10 or more times a year. And our strong innovation ensures that we always have something new for them. That is an extraordinary strength. We also have a significant opportunity to grow the brand by attracting new consumers, especially younger audiences and men. When I joined, I spoke to many of you about my philosophy. We will accelerate growth by putting the consumer at the center of everything we do. We'll execute that philosophy by listening to our consumers to gather insights, using those insights to create innovative and coveted products, telling bold and emotional brand and product stories, and bringing it all to life in an integrated and elevated omnichannel marketplace globally. And the good news, this philosophy is already in motion here at Bath & Body Works. Our Disney collaboration and everyday luxuries are great examples of what happens when we listen to our customers, build coveted products, tell emotional stories, and deliver it all seamlessly across all our channels. But there is an opportunity to execute that philosophy more consistently and with greater focus, to connect more intentionally with consumers across multiple touchpoints, and to be less reliant on promotions to drive growth. Over the next few months, I'll work closely with the leadership team to identify the short and medium term levers we can pull to deliver quick wins and define the long-term strategy which we will communicate in the coming quarters. Some of the levers we are exploring are digital. There is an opportunity with our current site to better deliver what customers expect. Enhanced functionality, improved aesthetics, and a compelling storytelling is the standard that consumers expect. There is a fast path to improvement that boosts conversion, brand equity, and engagement. Second, packaging and labeling. We've made real strides in formula quality, but our packaging doesn't emphasize it. We can do more to signal better-for-you ingredients, especially to health-conscious and younger consumers. Thirdly, distribution. To attract new consumers, we must be in their path. That means exploring new forms of distribution beyond our own channels, strategically and thoughtfully. And finally, international expansion. Today, international represents about 5% of our business, but from my experience at both Nike and Burberry, I know that international growth isn't incremental. It can define an era. In the coming weeks, I'll be on the ground with our partners and customers internationally to explore how we scale effectively. As I mentioned, we'll be sharing a clear strategy in the coming quarters, one that puts the consumer at the center. and commits to fewer, bolder priorities. Our strategy will address opportunities to accelerate growth through consistent, repeatable, and durable drivers. Now I'll turn it over to Eva.