Bath & Body Works (BBWI) AI Stock Analysis

• Market Cap: $5.95B
• Dividend Yield: 2.84%
• Average Volume (3M): 4.33M
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.03
• Revenue Growth: -0.93%
• EPS Growth: -4.07%
• Country: US
• Employees: 8,975
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Specialty Retail
• EPS (TTM): 0.49
• Shares Outstanding: 211,611,800
• 10 Day Avg. Volume: 5,635,018
• 30 Day Avg. Volume: 4,334,831
• PEG Ratio: -0.74
• Price to Book (P/B): -4.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: 1.72
• 1Y Price Target: $40.64
• Price Target Upside: 52.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 59 Neutral
• Price Target: $30.00 ▲(12.23%Upside)

The overall stock score reflects financial instability with high leverage and declining sales as significant risks. Positive earnings call and corporate events provide optimism, while technical indicators show bearish momentum. The stock's low valuation could attract value investors.

Positive Factors

Earnings

BBWI's accelerating sales growth and strong margin profile deserves a higher multiple and analyst reiterates a Buy rating.

International Expansion

Net sales of $1.4bn (+3%) were at the high end of guidance, driven by growth in all core categories and international sales up 10%.

Sales Growth

The company's new Disney collaboration was a key driver of first-quarter performance.

Negative Factors

Financial Outlook

Analyst is lowering the F25/F26 EPS estimates by 3%/4% and the price objective to $40 to reflect tariff pressure and a more cautious FY outlook.

Growth Uncertainty

The path back to consistent growth levels remains unclear and may be elongated as new management implements strategic changes.

Tariffs

Shares reversed primarily driven by disappointing 2Q trends/guidance, implied 2H GM compression, and tariff status-quo actualizing at bottom half of guidance.

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 makes money primarily through the sale of its personal care and home fragrance products. The company's revenue model is centered around its extensive retail network, which includes both physical stores and a robust online presence. Key revenue streams include direct sales from their brick-and-mortar locations, e-commerce platforms, and seasonal product launches that capitalize on consumer trends. Bath & Body Works also benefits from brand loyalty and repeat purchases driven by its popular loyalty programs and marketing campaigns. Strategic partnerships and exclusive product lines further contribute to its earnings, as does the company's agility in responding to consumer preferences and market demands.

Bath & Body Works Financial Statement Overview

Summary

Bath & Body Works faces challenges in revenue growth and profitability, with a declining revenue growth rate of -1.65% and high leverage indicated by negative stockholders' equity. However, strong cash flow and operational efficiency provide some stability.

Income Statement

Bath & Body Works has experienced declining revenue over the past few years, with a revenue growth rate of -1.65% from 2024 to 2025. The gross profit margin remains strong at approximately 44.26% in 2025, but the net profit margin has decreased to 10.92%. EBIT and EBITDA margins are stable at 17.32% for both, indicating operational efficiency. Nonetheless, the overall decline in revenue and profits suggests challenges in sales growth.

Balance Sheet

The company's balance sheet displays high leverage, with a negative stockholders' equity of -$1.385 billion in 2025 and a debt-to-equity ratio that cannot be calculated due to negative equity. This indicates financial instability and potential risk. The equity ratio is negative, further emphasizing the company's over-leveraged position, which may limit financial flexibility.

Cash Flow

Operating cash flow is robust at $886 million, and the free cash flow to net income ratio is healthy at 0.83, suggesting efficient cash management. However, the free cash flow growth rate is minimal at 0.61% from 2024 to 2025. The company's ability to generate cash remains strong, but limited growth in free cash flow may hinder future investments.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
7.31B	7.43B	7.56B	7.88B	6.43B
	Gross Profit
3.23B	3.24B	3.25B	3.85B	3.10B
	EBIT
1.27B	1.28B	1.38B	2.01B	1.60B
	EBITDA
1.62B	1.55B	1.61B	2.17B	2.08B
	Net Income Common Stockholders
798.00M	878.00M	800.00M	1.33B	844.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
674.00M	1.08B	1.23B	1.98B	3.90B
	Total Assets
4.87B	5.46B	5.49B	6.03B	11.57B
	Total Debt
4.96B	5.57B	6.05B	6.01B	9.46B
	Net Debt
4.29B	4.49B	4.82B	4.03B	5.55B
	Total Liabilities
6.25B	7.09B	7.70B	7.54B	12.23B
	Stockholders Equity
-1.39B	-1.63B	-2.21B	-1.52B	-662.00M
Cash Flow		Free Cash Flow
660.00M	656.00M	816.00M	1.22B	1.81B
	Operating Cash Flow
886.00M	954.00M	1.14B	1.49B	2.04B
	Investing Cash Flow
-162.00M	-286.00M	-328.00M	-259.00M	-219.00M
	Financing Cash Flow
-1.13B	-815.00M	-1.56B	-3.19B	610.00M

Bath & Body Works Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.73
• 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 26.73 is below the 20-day moving average (MA) of 31.33, below the 50-day MA of 30.23, and below the 200-day MA of 32.70, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 31.66 is Neutral, neither overbought nor oversold. The STOCH value of 5.22 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	76 Outperform	$21.19B	18.41	50.44%	―	1.06%	-0.29%
MNSO	75 Outperform	$5.35B	15.67	24.98%	3.41%	9.80%	-6.33%
SBH	72 Outperform	$878.79M	4.92	29.74%	―	0.17%	20.26%
RVLV	72 Outperform	$1.45B	29.01	11.97%	―	9.09%	106.50%
ETSY	64 Neutral	$5.77B	39.32	-39.97%	―	2.18%	-32.87%
Sector *	62 Neutral	$6.90B	11.12	2.92%	3.89%	2.68%	-25.06%
BBWI	59 Neutral	$5.95B	7.52	-52.83%	2.84%	-0.93%	-4.07%

Bath & Body Works Corporate Events

Bath & Body Works Reports Strong Q1 2025 Results

On May 29, 2025, Bath & Body Works reported a 2.9% increase in net sales to $1.4 billion for the first quarter of 2025, with earnings per diluted share rising 29% to $0.49, surpassing expectations. The company maintained its full-year 2025 guidance of 1% to 3% net sales growth and earnings per diluted share between $3.25 and $3.60. The announcement also highlighted the appointment of Daniel Heaf as CEO, effective May 16, 2025, signaling a strategic focus on growth in the home fragrance and beauty categories.

The most recent analyst rating on (BBWI) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Bath & Body Works stock, see the BBWI Stock Forecast page.

Bath & Body Works Amends Credit Facility Agreement

On May 22, 2025, Bath & Body Works amended and restated its senior secured asset-based revolving credit facility, known as the ABL Facility. This strategic financial move allows the company to borrow in both U.S. and Canadian dollars, with the facility maturing five years post-closing. The ABL Facility is secured by first-priority liens on various assets, including credit card receivables and inventory, and includes covenants that restrict additional indebtedness. This development is expected to impact Bath & Body Works’ financial flexibility and operational strategy, potentially influencing its market positioning and stakeholder interests.

The most recent analyst rating on (BBWI) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Bath & Body Works stock, see the BBWI Stock Forecast page.

Bath & Body Works Appoints New CEO Daniel Heaf

On May 19, 2025, Bath & Body Works announced the appointment of Daniel Heaf as the new Chief Executive Officer, effective May 16, 2025, succeeding Gina Boswell. Heaf, who has a strong background in driving growth and transformation at Nike and Burberry, is expected to lead the company into its next chapter of growth. The company also pre-announced its first quarter 2025 results, reporting net sales of $1.4 billion and earnings per diluted share of $0.49, meeting and exceeding guidance expectations, while maintaining its full-year outlook.

The most recent analyst rating on (BBWI) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Bath & Body Works stock, see the BBWI Stock Forecast page.

Bath & Body Works Hosts Investor Tour in Ohio

On April 17, 2025, Bath & Body Works hosted an investor tour at its Beauty Park in Columbus, Ohio, showcasing its strategic advantages in agility, innovation, and supply chain management. The event highlighted the company’s integrated development and production capabilities, emphasizing its ability to launch new products swiftly and maintain a strong market position through its vertically integrated supply chain.

Bath & Body Works Reaffirms 2025 Financial Guidance

On March 11, 2025, Bath & Body Works’ executive team will participate in the Bank of America Consumer & Retail Conference. The company reaffirms its first quarter 2025 net sales growth of 1% to 3% and earnings per share guidance of $0.36 to $0.43, as well as its full-year fiscal 2025 net sales growth and earnings per share guidance.