Bath & Body Works (BBWI) AI Stock Analysis

• Market Cap: $6.12B
• Dividend Yield: 2.73%
• Average Volume (3M): 4.79M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.17
• Revenue Growth: -0.93%
• EPS Growth: -4.07%
• Country: US
• Employees: 8,975
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Specialty Retail
• EPS (TTM): 0.49
• Shares Outstanding: 211,611,800
• 10 Day Avg. Volume: 4,847,818
• 30 Day Avg. Volume: 4,788,427
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 6.77
• 1Y Price Target: $41.31
• Price Target Upside: 41.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 62 Neutral
• Price Target: $30.00 ▲(2.42% Upside)

Bath & Body Works scores a 62, driven primarily by a positive earnings call and strategic corporate events, indicating potential for growth under new leadership. However, financial challenges and bearish technical indicators temper the overall outlook.

Positive Factors

Customer Engagement

Management noted opportunity to grow sales with most loyal customers while increasing loyalty among more casual shoppers.

Digital and Operational Enhancements

There is a focus on digital improvements and potential immediate impact.

Management Strategy

North America topline growth remains new management's top priority.

Negative Factors

Growth and Margin Challenges

Growth acceleration and potential margin expansion could take longer than previously expected.

Sales and Tariff Impact

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

Strategic Uncertainty

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

Bath & Body Works Business Overview & Revenue Model

Company Description

Bath & Body Works, Inc. (BBWI) is a leading specialty retailer renowned for its extensive range of personal care products, home fragrances, and gifts. The company operates primarily in the retail and consumer goods sectors, offering a diverse portfolio that includes body lotions, fragrances, candles, and shower gels. With a strong presence in North America, Bath & Body Works is recognized for its innovation in product development and its commitment to delivering high-quality, aromatic experiences to its customers.

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 financial challenges with declining revenues and high leverage, as evidenced by negative equity. Profit margins remain solid, but growth is limited, and financial stability is a concern. Cash flow generation is stable, providing some cushion against financial risks, but improvements in revenue growth and equity position are necessary for long-term sustainability.

Income Statement

The income statement shows modest performance with a gross profit margin of 44.55% and a net profit margin of 11.11% TTM. However, revenue growth has been inconsistent, with a decline from previous years. EBIT and EBITDA margins are relatively healthy at 17.53% and 21.58% respectively, but overall profitability is under pressure due to declining revenues.

Balance Sheet

The balance sheet is concerning with a negative stockholders' equity indicating financial instability and high leverage. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, reflecting more liabilities than assets. These factors suggest financial risk and require attention.

Cash Flow

Cash flow statements reveal stable cash generation with a positive free cash flow of $781 million TTM and a strong operating cash flow to net income ratio of 1.22. However, free cash flow growth is modest, and the company faces challenges in financing activities, indicating cash flow stability but with limited growth potential.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	1.62B	1.64B	1.61B	2.17B	2.08B
Net Income	798.00M	878.00M	800.00M	1.33B	844.00M
Balance Sheet
Total Assets	4.87B	5.46B	5.49B	6.03B	11.57B
Cash, Cash Equivalents and Short-Term Investments	674.00M	1.08B	1.23B	1.98B	3.90B
Total Debt	4.96B	5.57B	6.05B	6.01B	9.46B
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: 29.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 29.29 is below the 20-day moving average (MA) of 30.85, below the 50-day MA of 29.66, and below the 200-day MA of 32.34, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 is Neutral, 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	78 Outperform	$22.93B	20.16	50.44%	―	1.06%	-0.29%
SBH	77 Outperform	$1.18B	6.49	28.94%	―	-0.38%	35.78%
MNSO	75 Outperform	$6.06B	17.88	24.98%	2.95%	9.80%	-6.33%
RVLV	71 Outperform	$1.48B	31.45	10.36%	―	9.09%	106.50%
ETSY	63 Neutral	$5.55B	44.95	-39.97%	―	2.38%	-38.88%
BBWI	62 Neutral	$6.12B	7.73	-52.83%	2.73%	-0.93%	-4.07%
Sector *	61 Neutral	$16.55B	10.17	-9.03%	3.33%	1.46%	-22.85%

Bath & Body Works Corporate Events

Bath & Body Works Holds Annual Stockholders Meeting

On June 5, 2025, Bath & Body Works, Inc. held its Annual Meeting of Stockholders, where key decisions were made, including the election of directors and the ratification of Ernst & Young LLP as the independent registered public accounting firm for the 2025 fiscal year. The stockholders also approved the executive compensation plan, with 98.77% of the shares voting in favor, reflecting strong support for the company’s leadership and strategic direction.

The most recent analyst rating on (BBWI) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Bath & Body Works stock, see the BBWI Stock Forecast page.

Bath & Body Works 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.