Covid restrictions and lockdowns springboarded a boom in self-pampering products worldwide. But now that people are out and about more and cost-of-living costs are rising, companies catering to the trend are seeing a pull back in sales.
Coming off a string of record years, Bath & Body Works has reported net sales of US$2.889 billion for its fourth quarter – a dip of 5 per cent by contrast to its revenues of US$3.027 billion for the same period last year.
Net sales for the full year slipped 4 per cent to US$7.56 billion for the calendar year ended January 2023, compared to US$7.82 billion for the 12 months to January 2022.
The company expects sales to flatline for fiscal 2023, but CEO Gina Boswell remains buoyant. “The team delivered better-than-expected earnings results despite a challenging macroeconomic environment, which is a testament to the strengths of our organisation. Our customer base responded well to our holiday season, in part powered by our loyalty program, which now exceeds 33 million members”.
Boswell was appointed CEO of Bath & Body Works last November. She has an extensive beauty and personal care background. Over the past 30 years, she has held senior positions at Unilever, The Estée Lauder Companies and Avon. In 2015, she was nominated as one of The 50 Most Powerful Women in Beauty in the US by the prestigious Women’s Wear Daily.
Bath & Body Works has 1770 company operated stores in the US and Canada and 360 international franchised operations including nine stores in Australia – Chadstone and Emporium in Melbourne, DFO Homebush, the QVB and Westfield Parramatta in Sydney, Harbour Town, Westfield Chermside and Westfield Mt Gravatt in Queensland and Westfield Marion in Adelaide. The company also has a dedicated local website – www.bathandbodyworks.com.au
I see a tremendous opportunity to strengthen our position as a leading global omnichannel home and personal care brand, added Boswell. “We are focused on expanding our customer base, bringing exciting new products to market, and unlocking the potential of our omnichannel model, while aggressively pursuing opportunities for growth and margin expansion”.