Bath & Body Works (BBWI) AI Stock Analysis

• Market Cap: $4.00B
• Dividend Yield: 3.99%
• Average Volume (3M): 9.61M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 1.31
• Revenue Growth: -1.04%
• EPS Growth: -20.88%
• Country: US
• Employees: 8,975
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.35
• Shares Outstanding: 204,721,600
• 10 Day Avg. Volume: 7,324,726
• 30 Day Avg. Volume: 9,609,569
• PEG Ratio: -1.49
• Price to Book (P/B): -5.97
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 12.54
• Enterprise Value/Market Cap: 2.45
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 3.02
• Enterprise Value/Ebitda: 6.52
• 1Y Price Target: $20.00
• Price Target Upside: -0.25% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.95
• Revenue Forecast (FY): $7.17B

• Rating: 53 Neutral
• Price Target: $19.50 ▼(-2.74% Downside)

The overall stock score of 53 reflects significant financial challenges, including declining revenue and high leverage, which are partially offset by strong cash flow generation. The technical analysis indicates bearish momentum, while the valuation suggests the stock is undervalued. Strategic initiatives from the earnings call provide some optimism, but challenges remain.

Positive Factors

Strong Market Leadership

The company's strong market leadership and brand recognition provide a durable competitive advantage, supporting long-term growth potential.

International Sales Growth

Growth in international sales indicates successful market expansion and diversification, which can enhance revenue stability and reduce reliance on domestic markets.

Cost Savings Initiatives

Significant cost savings initiatives can improve operational efficiency and profitability, providing funds for strategic investments and strengthening financial health.

Negative Factors

Decline in Core Categories

Declining sales in core categories highlight challenges in maintaining product relevance and consumer interest, potentially affecting long-term revenue growth.

Challenging Consumer Environment

A challenging consumer environment can lead to reduced spending on discretionary items, impacting sales and profitability over the medium term.

Increased Promotional Activity

Increased promotional activity may erode brand value and compress margins, challenging the company's ability to sustain profitability without discounts.

Bath & Body Works Business Overview & Revenue Model

Company Description

Bath & Body Works, Inc. operates a specialty retailer of home fragrance, body care, and soaps and sanitizer products. The company sells its products under the Bath & Body Works, White Barn, and other brand names through specialty retail stores and websites located in the United States and Canada, as well as through international stores operated by partners under franchise, license, and wholesale arrangements. As of January 29, 2022, it operated 1,755 company-operated retail stores and 338 international partner-operated stores. The company was formerly known as L Brands, Inc. and changed its name to Bath & Body Works, Inc. in August 2021. Bath & Body Works, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.

How the Company Makes Money

Bath & Body Works generates revenue through multiple channels, primarily through direct sales in its retail locations and e-commerce platforms. The company’s core revenue streams include sales of personal care products such as body care, skincare, and fragrances, as well as home fragrance items like candles and room sprays. Seasonal promotions and limited-edition launches significantly boost sales, particularly during holidays. Additionally, Bath & Body Works benefits from a strong customer loyalty program, encouraging repeat purchases. The company also engages in strategic partnerships and collaborations that enhance its product offerings and market reach, contributing to overall revenue growth.

Bath & Body Works Financial Statement Overview

Summary

Bath & Body Works shows strong revenue growth and cash flow generation, but faces challenges with declining profitability margins and high financial leverage. The company needs to address its debt levels and improve profitability for long-term stability.

Income Statement

Bath & Body Works shows a mixed performance in its income statement. The TTM data indicates a strong revenue growth rate of 31.3%, which is a positive sign of recovery and expansion. However, the gross profit margin and net profit margin have declined compared to previous years, indicating pressure on profitability. The EBIT and EBITDA margins remain stable, suggesting operational efficiency, but the declining net income is a concern.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity leading to a high debt-to-equity ratio. This indicates potential financial risk and instability. The return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows positive trends, with a 25.6% growth in free cash flow in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is strong, suggesting good cash conversion. However, the free cash flow to net income ratio indicates some pressure on cash flow relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.35B	7.31B	7.43B	7.56B	7.88B	6.43B
Gross Profit	3.25B	3.23B	3.24B	3.25B	3.85B	3.10B
EBITDA	1.50B	1.62B	1.64B	1.61B	2.17B	2.08B
Net Income	699.00M	798.00M	878.00M	800.00M	1.33B	844.00M
Balance Sheet
Total Assets	4.99B	4.87B	5.46B	5.49B	6.03B	11.57B
Cash, Cash Equivalents and Short-Term Investments	236.00M	674.00M	1.08B	1.23B	1.98B	3.57B
Total Debt	4.98B	4.96B	5.57B	6.05B	6.01B	7.48B
Total Liabilities	6.58B	6.25B	7.09B	7.70B	7.54B	12.23B
Stockholders Equity	-1.59B	-1.39B	-1.63B	-2.21B	-1.52B	-662.00M
Cash Flow
Free Cash Flow	946.00M	660.00M	656.00M	816.00M	1.22B	1.81B
Operating Cash Flow	1.18B	886.00M	954.00M	1.14B	1.49B	2.04B
Investing Cash Flow	-215.00M	-162.00M	-286.00M	-328.00M	-259.00M	-219.00M
Financing Cash Flow	-919.00M	-1.13B	-815.00M	-1.56B	-3.19B	610.00M

Bath & Body Works Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBWI, the sentiment is Neutral. The current price of 20.05 is above the 20-day moving average (MA) of 18.74, below the 50-day MA of 22.28, and below the 200-day MA of 27.38, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 49.91 is Neutral, neither overbought nor oversold. The STOCH value of 88.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BBWI.

Bath & Body Works Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VIPS	81 Outperform	$9.91B	10.55	17.83%	2.39%	-2.43%	-8.11%
ULTA	78 Outperform	$26.32B	23.06	47.97%	―	5.45%	4.28%
MNSO	72 Outperform	$6.03B	20.34	20.83%	3.10%	13.37%	-19.37%
BBY	62 Neutral	$15.71B	24.75	22.49%	5.16%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	57 Neutral	$5.40B	37.40	―	―	1.98%	-20.98%
BBWI	53 Neutral	$4.00B	6.00	―	3.99%	-1.04%	-20.88%

Bath & Body Works Corporate Events

Bath & Body Works Unveils Consumer First Formula Plan

On November 20, 2025, Bath & Body Works announced a strategic transformation plan called the Consumer First Formula, aimed at driving sustainable long-term growth by focusing on creating innovative products, reigniting the brand, winning in the marketplace, and operating with speed and efficiency. The company’s third-quarter results for 2025 showed a slight decline in net sales and earnings per share compared to the previous year, prompting a lowered outlook for the fourth quarter and full-year 2025 due to ongoing macro consumer pressures. Despite these challenges, Bath & Body Works is confident in its future growth potential and plans to implement cost-saving measures to fund revenue-generating initiatives.