Bath & Body Works (BBWI) AI Stock Analysis

• Market Cap: $4.34B
• Dividend Yield: 5.06%
• Average Volume (3M): 6.09M
• Price to Earnings (P/E): 6.5
• Beta (1Y): 1.06
• Revenue Growth: -1.04%
• EPS Growth: N/A
• Country: US
• Employees: 8,975
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.35
• Shares Outstanding: 206,187,580
• 10 Day Avg. Volume: 7,120,698
• 30 Day Avg. Volume: 6,085,292
• 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: 2.26
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.98
• Enterprise Value/Ebitda: 6.28
• 1Y Price Target: $30.50
• Price Target Upside: 92.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 3.42
• Revenue Forecast (FY): $7.45B

• Rating: 57 Neutral
• Price Target: $22.00 ▲(39.06% Upside)

Bath & Body Works' overall stock score reflects a mixed financial performance with strong revenue growth but high financial leverage. Technical indicators show bearish momentum, while valuation metrics suggest potential undervaluation. The earnings call provides a cautious outlook with strategic initiatives to address current challenges.

Positive Factors

Cost Savings Initiatives

Significant cost savings initiatives will enhance operational efficiency, allowing reinvestment into growth areas and improving long-term profitability.

International Sales Growth

Growth in international sales indicates successful global expansion efforts, enhancing revenue diversification and reducing reliance on domestic markets.

Strategic Leadership Appointments

New leadership roles aim to strengthen strategic execution, potentially driving innovation and enhancing organizational capabilities for future growth.

Negative Factors

Decline in Core Categories

Declining sales in core categories highlight challenges in product demand and market positioning, potentially impacting long-term revenue stability.

High Financial Leverage

High leverage and negative equity pose financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Challenging Consumer Environment

A challenging consumer environment may suppress sales and profitability, necessitating strategic adjustments to align with consumer preferences.

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 negative stockholders' equity and high debt levels pose significant financial risks.

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: 15.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 15.82 is below the 20-day moving average (MA) of 22.98, below the 50-day MA of 24.83, and below the 200-day MA of 29.14, indicating a bearish trend. The MACD of -1.69 indicates Positive momentum. The RSI at 14.36 is Positive, neither overbought nor oversold. The STOCH value of 6.86 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
VIPS	79 Outperform	$9.59B	10.56	17.79%	2.47%	-5.24%	-12.89%
MNSO	78 Outperform	$6.54B	19.49	22.92%	3.15%	10.93%	-10.89%
ULTA	72 Outperform	$22.30B	19.03	48.52%	―	2.94%	4.57%
BBY	71 Outperform	$15.63B	20.50	26.72%	5.14%	-2.21%	-37.30%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	57 Neutral	$4.34B	6.47	―	5.06%	-1.04%	―
ETSY	55 Neutral	$5.24B	36.05	―	―	1.98%	-20.98%

Bath & Body Works Corporate Events

Bath & Body Works Unveils Strategic Growth Plan

Bath & Body Works, Inc., a leading player in the personal care and home fragrance industry, is renowned for its innovative and trend-setting products such as fine fragrance mists, body lotions, and 3-wick candles. The company operates over 1,900 stores in the U.S. and Canada, along with a significant online presence.

Bath & Body Works, Inc. Earnings Call: Strategic Moves Amid Challenges

Bath & Body Works, Inc. recently held its earnings call, revealing a mixed sentiment regarding its current market position and future strategies. While the company boasts a strong market presence and is implementing cost-saving measures, it faces significant challenges, including declines in core categories, a tough consumer environment, increased promotional reliance, and underperformance in digital sales. The strategic plan aims to tackle these issues by focusing on core categories and expanding into new channels like Amazon.

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.

The most recent analyst rating on (BBWI) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Bath & Body Works stock, see the BBWI Stock Forecast page.

Bath & Body Works Earnings Call Highlights Strong Growth

Bath & Body Works, Inc. recently held its earnings call, revealing a quarter marked by strong revenue and earnings performance. The company highlighted successful sales events and strategic partnerships as key drivers of this success. Despite facing challenges with their digital platform and tariff impacts on gross profit, Bath & Body Works remains optimistic about its long-term growth prospects.

Bath & Body Works Reports Strong Q2 2025 Results

Bath & Body Works, Inc. is a leading global retailer specializing in personal care and home fragrance products, known for its innovative and affordable luxury offerings. The company operates primarily in the U.S. and Canada, with a significant international presence through franchised locations.

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.

The most recent analyst rating on (BBWI) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Bath & Body Works stock, see the BBWI Stock Forecast page.