Bath & Body Works (BBWI) AI Stock Analysis

• Market Cap: $5.46B
• Dividend Yield: 3.11%
• Average Volume (3M): 6.12M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.16
• Revenue Growth: -0.18%
• EPS Growth: -18.95%
• Country: US
• Employees: 8,975
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.37
• Shares Outstanding: 206,187,580
• 10 Day Avg. Volume: 7,338,544
• 30 Day Avg. Volume: 6,116,569
• 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: 1.94
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: 6.79
• 1Y Price Target: $38.73
• Price Target Upside: 50.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 63 Neutral
• Price Target: $31.00 ▲(20.48% Upside)

Bath & Body Works' overall stock score reflects strong earnings call performance and attractive valuation, offset by financial leverage concerns and weak technical indicators. The company's strategic initiatives and share repurchase plans are positive, but challenges in profitability and digital platform performance remain.

Positive Factors

Revenue Growth

Consistent revenue growth at the high end of guidance demonstrates strong market demand and effective sales strategies, supporting long-term business expansion.

Strategic Partnerships

The Disney partnership leverages popular IP to attract new customers and enhance brand appeal, potentially driving sustained revenue growth.

Cash Flow Generation

Strong cash flow growth indicates robust operational efficiency and financial health, providing the company with resources for investment and debt reduction.

Negative Factors

High Financial Leverage

High leverage and negative equity pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, affecting long-term stability.

Digital Platform Underperformance

Underperformance in digital sales highlights challenges in adapting to e-commerce trends, potentially hindering growth in a digital-first retail environment.

Tariffs Impact on Profit

Tariff impacts on gross profit reduce margins, pressuring profitability and necessitating strategic cost management to maintain financial health.

Bath & Body Works Business Overview & Revenue Model

Company Description

Bath & Body Works (BBWI) is a leading specialty retailer of personal care, fragrances, and home products, widely recognized for its high-quality offerings and innovative scents. Established in 1990, the company operates primarily in the retail sector, providing a diverse range of products including body lotions, shower gels, perfumes, candles, and home fragrance items. With a strong presence in both physical stores and online, Bath & Body Works aims to deliver a unique shopping experience characterized by their signature fragrances and seasonal collections.

How the Company Makes Money

Bath & Body Works generates revenue primarily through the sale of its personal care and home fragrance products. The company operates a multi-channel sales model, which includes brick-and-mortar retail stores, an e-commerce platform, and strategic partnerships with third-party retailers. Key revenue streams include direct sales from retail locations, online sales, and seasonal promotions that attract customers. Additionally, Bath & Body Works benefits from loyalty programs that encourage repeat purchases and increase customer retention. The brand also engages in frequent promotional events and offers limited-time collections, which drive foot traffic and boost sales. Collaborations with influencers and seasonal marketing campaigns further enhance brand visibility and contribute to revenue growth.

Bath & Body Works Financial Statement Overview

Summary

Bath & Body Works shows strong revenue growth and cash flow generation, but profitability margins and high financial leverage pose significant challenges. The company needs to address its high 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	7.37B	7.31B	7.43B	7.56B	7.88B	6.43B
Gross Profit	3.29B	3.23B	3.24B	3.25B	3.85B	3.10B
EBITDA	1.56B	1.62B	1.64B	1.61B	2.17B	2.08B
Net Income	728.00M	798.00M	878.00M	800.00M	1.33B	844.00M
Balance Sheet
Total Assets	4.81B	4.87B	5.46B	5.49B	6.03B	11.57B
Cash, Cash Equivalents and Short-Term Investments	364.00M	674.00M	1.08B	1.23B	1.98B	3.57B
Total Debt	4.99B	4.96B	5.57B	6.05B	6.01B	7.48B
Total Liabilities	6.36B	6.25B	7.09B	7.70B	7.54B	12.23B
Stockholders Equity	-1.55B	-1.39B	-1.63B	-2.21B	-1.52B	-662.00M
Cash Flow
Free Cash Flow	783.00M	660.00M	656.00M	816.00M	1.22B	1.81B
Operating Cash Flow	1.00B	886.00M	954.00M	1.14B	1.49B	2.04B
Investing Cash Flow	-217.00M	-162.00M	-286.00M	-328.00M	-259.00M	-219.00M
Financing Cash Flow	-934.00M	-1.13B	-815.00M	-1.56B	-3.19B	610.00M

Bath & Body Works Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBWI, the sentiment is Negative. The current price of 25.73 is below the 20-day moving average (MA) of 29.09, below the 50-day MA of 29.82, and below the 200-day MA of 31.96, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 32.47 is Neutral, neither overbought nor oversold. The STOCH value of 3.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBWI.

Bath & Body Works Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTA	80 Outperform	23.71B	20.27	46.14%	―	2.94%	4.57%
VIPS	79 Outperform	9.31B	9.96	19.36%	2.54%	-5.24%	-12.89%
MNSO	77 Outperform	7.69B	23.48	25.38%	2.46%	10.93%	-10.83%
BBY	70 Outperform	15.66B	20.40	28.65%	5.09%	-2.21%	-37.30%
BBWI	63 Neutral	$5.46B	7.87	-52.83%	3.11%	-0.18%	-18.95%
ETSY	59 Neutral	6.01B	48.48	-14.58%	―	2.38%	-38.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Bath & Body Works Corporate Events

Bath & Body Works Reports Q2 Financial Results

On August 28, 2025, Bath & Body Works reported its second quarter financial results, showing a 1.5% increase in net sales to $1.5 billion. The company adjusted its full-year earnings guidance, raising the low end of its adjusted earnings per share forecast. The company is focusing on strategic moves to enhance digital experiences, product efficacy, and distribution expansion, aiming for durable long-term growth. Despite a decrease in earnings per diluted share compared to the previous year, the company remains optimistic about its growth prospects.