Bath & Body Works recorded its first direct-sales growth since 2021 despite lower total sales and raised its annual earnings guidance. In Australia, Woolworths lifted annual profit to 1.14 billion Australian dollars, helped by 15.9 per cent online-sales growth and its Ooshies toy promotion. Both results put the focus on customer channels and promotions beyond ordinary shelf-price increases.
Economics & Markets··Night
Direct sales grew after four years
Bath & Body Works' second-quarter net sales fell 2.3 per cent to 1,514 million dollars, but direct sales grew for the first time since 2021. The company said investment in its digital shopping experience over the past year had created a more seamless customer journey. Operating income rose to 216 million dollars from 157 million dollars a year earlier, while net income increased to 118 million dollars from 64 million dollars. Chief executive Daniel Heaf said average unit retail on new products had strengthened, though underlying trends remained pressured.[1]
Online sales and toys lifted Woolworths
Woolworths' annual net profit rose 175 million Australian dollars to 1.14 billion Australian dollars. Australian supermarket sales increased 4.6 per cent to 53.85 billion Australian dollars from 51.49 billion Australian dollars in the year to June, while online sales grew 15.9 per cent. The retailer supported that channel by expanding in-store pickup and on-demand delivery. Its Ooshies toy promotion, which ran from mid-July to mid-August, accounted for as much as 2 per cent of supermarket sales growth over the eight-week period.[2]
Profit improved before sales pressure disappeared
Bath & Body Works raised annual diluted earnings-per-share guidance to 3.13 to 3.33 dollars while still expecting sales to decline between 4 per cent and 2.5 per cent. Woolworths chief executive Amanda Bardwell attributed its margin gain to more customers buying more rather than higher shelf prices; lower administrative costs and reduced stock loss also helped. Broader sales pressure persisted at both companies even as profit improved. Direct sales, delivery and limited promotions are taking a larger role in reaching customers.[1], [2]
