Bath & Body Works Inc 2024年度报告

AND THE 2024 ANNUAL REPORT We help theWORLDlive more fullythroughthePOWER OF FRAGRANCE. Home of America’s Favorite Fragrances®, Bath & Body Works is a global leader in personal care andhome fragrance, including top-selling collections for fine fragrance mist, body lotion and body cream,3-wick candles, home fragrance diffusers and liquid hand soap. Powered by agility and innovation,the company’s predominantly U.S.-based supply chain enables it to deliver quality, on-trend luxuriesat affordable prices. Bath & Body Works serves and delights customers however and whereverthey want to shop, from welcoming, in-store experiences at more than 1,890 company-operatedBath & Body Works locations in the U.S. and Canada, more than 525 international franchised locationsand an online storefront at bathandbodyworks.com. Dear Fellow Shareholders, Fiscal 2024 was a significant year for Bath & Body Works. Theteam executed with focus and discipline, building momentumthroughout the year, making progress on our strategy andestablishing a strong foundation for long-term growth. enhance our corporate governance. If all nominees are electedto serve as directors at the 2025 annual meeting, 90% of theCompany’s directors will have joined the Board in 2019 orlater, and the average director tenure on our Board will be4.2 years. Throughout the year, the Company made meaningful progresson our three strategic priorities, including accelerating toplinegrowth, enhancing operational effectiveness and efficiency, andstrengthening our financial position, which helped reinvigoratethe business while also delivering value for our shareholders,associates and customers. The Board is committed to ongoing dialogue with shareholdersand taking a proactive approach to addressing matters andsuggestions with thoughtful action. Through our ongoingshareholder engagement program, we continue to listen, learnand implement feedback that supports our Company’s long-term growth. Despite a choppy macroeconomic backdrop, when adjusting forholiday timing and calendar impacts, revenue improvedsequentially every quarter in 2024 and the Company returnedto positive sales growth in the second half of the year. Bath &Body Works’ return to growth was driven by strategicinvestments in product innovation, marketing and technology.We introduced innovative products across our core categories –Body Care, Home Fragrance, and Soaps and Sanitizers – anddrove strong performance in newer categories (which we calladjacencies), including Men’s, Lip, Hair and Laundry. At thesame time, the team remained focused on enhancingoperational efficiency. The Company’sFuel for Growthcostoptimization plan delivered approximately $155 million dollarsin incremental cost savings – significantly exceeding initialtargets. On behalf of the entire Board, I would like to thank ourdedicated leadership team and associates that work every dayto deliver on our purpose to help the world live more fullythrough the power of fragrance. Thank you for your continued support and investment in ourCompany. We ask for your voting support on the termscontained in this proxy statement and appreciate you taking thetime to cast your vote. Sincerely, Additionally, in 2024, the Company invested approximately$245 million in technology and other capital projects tostrengthen our infrastructure and improve the customerexperience, reinforcing our commitment to long-term growth.After making these investments, we are pleased to havegenerated $660 million in free cash flow in fiscal 2024,enabling us to achieve our targeted debt leverage ratio of 2.5xwhile returning cash to shareholders. Sarah E. NashBoard ChairBath & Body Works, Inc. These achievements reflect the strength of our business modeland the disciplined execution of our leadership team. The newshare repurchase program, which authorizes the Company tobuy back up to $500 million in outstanding common stock,underscores our confidence in the Company’s long-term growthstrategy and our commitment to delivering shareholder valuethrough disciplined capital allocation. Looking ahead, we are excited about the opportunities we seeand the momentum we have built. With a focused strategy, arobust innovation pipeline and a highly engaged team, we areconfident in the Company’s ability to continue delivering for ourshareholders and all stakeholders in 2025 and beyond. In terms of governance, we have significantly refreshed ourBoard of Directors over the last few years to ensure an optimalstructure and composition with the right mix of expertise,backgrounds and tenures. In 2024, we reduced the size of ourBoard to 10 directors and rotated our committee chairs to Dear Fellow Shareholders, At Bath & Body Works, we help the world live more fullythrough the power of fragrance. After more than two years atBath & Body Works, I am proud of how we have brought thatpurpose to life for our customers and I am excited about thepossibilities for the future. Everywhere I look across the