Bath & Body Works CEO Says Company in Early Stages of Transformation to Global Brand

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5.28.2026

Quick Facts

Bath & Body Works Q1 2026 net sales fell 3% to $1.4 billion despite exceeding guidance
CEO Daniel Heaf says company transforming from specialty retailer to global brand under Consumer First Formula strategy
CFO Eva Boratto stepped down June 12, with Tom Javitch named interim CFO after 16 years with the company

Bath & Body Works is executing a multi-year transformation strategy to become a global brand, CEO Daniel Heaf said during the company’s first quarter earnings call Wednesday.

“We are in the early stages of transforming Bath & Body Works from a specialty retailer to a category-leading global brand,” Heaf said. “Our first-quarter results exceeded guidance, but remain below the standard our brand is capable of delivering.”

The company reported Q1 2026 net sales of $1.4 billion, down 3% year-over-year, though earnings per share jumped to $0.90 from $0.49 last year. Net income rose 74% to $183 million.

Bath & Body Works operates 1,923 company-owned stores as of May 2, down from 1,927 at the start of the year. International partner stores increased to 579 from 573.

The retailer is implementing its Consumer First Formula strategy, which focuses on product innovation, brand reinvigoration, marketplace expansion including Amazon, and operational efficiency. The plan aims to attract younger consumers and drive sustainable growth.

Body care proved the weakest category, declining in the mid-teens and performing below company expectations. The company faces challenges from high market share in some categories and competition from rival brands.

CFO Eva Boratto stepped down June 12 to pursue other opportunities. Tom Javitch, a 16-year Bath & Body Works veteran, was named interim CFO. Boratto had projected full-year 2026 net sales to decline 2.5% to 4.5% as the company balances cost control with targeted reinvestment.

Heaf joined Bath & Body Works in May 2025, replacing former CEO Gina Boswell. He previously served as Nike’s Chief Strategy and Transformation Officer, where he oversaw strategy and drove growth in retail and digital channels. As head of Nike Direct, he doubled the business to $22.3 billion over five years.

The company expects the transformation’s financial impact to build throughout 2026 and into 2027. Management reaffirmed 2026 guidance for adjusted earnings per share of $2.40 to $2.65, below 2025’s $3.21.