A Business at a Glance
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Bath & Body Works, Inc.
BBWI
$4.2B
Mkt Cap
$19.90
+2.90%
Bath & Body Works, Inc. (BBWI) has a current P/E ratio of 4.7, compared to its historical median P/E of 10.3. The stock is currently considered Cheap based on its historical valuation range.
Bath & Body Works, Inc. (BBWI) has a 5-year average return on invested capital (ROIC) of 67.4%. This indicates strong capital allocation and a potential competitive advantage.
Bath & Body Works, Inc. (BBWI) has a market capitalization of $4.2B. It is classified as a mid-cap stock.
Yes, Bath & Body Works, Inc. (BBWI) pays a dividend with a trailing twelve-month yield of 4.02%. The company also returns capital through share buybacks, with a buyback yield of 9.66%.
Based on historical P/E analysis, Bath & Body Works, Inc. (BBWI) appears cheap. The current P/E of 4.7 is 54% below its historical median of 10.3. The estimated fair value CAGR (P/E method) is 16.2%.
Bath & Body Works, Inc. (BBWI) operates in the Retail-Retail Stores, Nec industry, within the Consumer Cyclical sector.
Bath & Body Works, Inc. (BBWI) reported annual revenue of $7.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Bath & Body Works is a global leader in personal care and home fragrance with over 35 years of heritage, offering expertly crafted scents and body care products in multiple forms including fine fragrance mist, body cream, lotion, eau de parfum, body wash, hand soap, sanitizer, and iconic 3-wick candles. The company operates a predominantly off-mall retail model with 1,927 company-operated stores in the United States and Canada, complemented by 573 international partner-operated stores and 34 international e-commerce sites across more than 45 countries, alongside e-commerce platforms in the U.S., Canada, and Amazon. Bath & Body Works employs a vertically-integrated, predominantly domestic supply chain and maintains a customer loyalty program with 40 million active members, generating revenue through direct retail sales, e-commerce, and asset-light franchise and wholesale arrangements where partners invest in real estate while the company controls assortment, pricing, and store design. The company's competitive advantages include market leadership in attractive categories, iconic global brand recognition, a substantial store footprint with 2,500 locations, and a fast, efficient supply chain that positions it well to absorb cost pressures and compete effectively. Under the Consumer First Formula strategy launched in Q3 2025, management is focused on creating disruptive product innovation, reigniting brand cultural relevance through targeted marketing and creator partnerships, expanding marketplace access including Amazon, and operating with speed and efficiency to attract new, younger consumers and return to sustainable growth.
【Strategic transformation underway】 Management expects the Consumer First Formula to drive sequential improvement throughout 2026 and accelerate into 2027, with new product innovations, elevated brand positioning, and expanded distribution channels beginning to generate visible consumer impact in the back half of 2026 and building momentum through 2027. The company is investing in product assortment, digital platform enhancements, and brand marketing while targeting $250 million in cost savings over two years to fund these strategic initiatives and maintain financial discipline. Management acknowledges that underlying business trends remain pressured in the near term but expects the full financial impact of transformation actions to materialize over time as consumers respond to new product forms, upgraded packaging, higher fragrance loads, and improved digital experiences. International partners are showing confidence in the strategy with planned store expansion, and the company expects to see acceleration in new-to-brand customer growth, improved performance in hero categories, and expanded reach through new distribution channels as the year progresses.
| Metric | Target | Period |
|---|---|---|
| Net sales | down 4.5% to down 2.5% | FY2026 |
| Adjusted earnings per diluted share | $2.40-$2.65 | FY2026 |
| Capital expenditures | approximately $270 million | FY2026 |
| Free cash flow | approximately $600 million | FY2026 |
| North American square footage growth | approximately 1% | FY2026 |
| International net sales | up mid to high single digits | FY2026 |
| Annual dividend per share | $0.80 | FY2026 |
Net sales (FY2026): “We expect net sales to be down 4.5% to down 2.5%.”
Adjusted earnings per diluted share (FY2026): “Considering these inputs, we are forecasting full-year adjusted earnings per diluted share of $2.40-$2.65.”
Capital expenditures (FY2026): “In 2026, we expect to invest approximately $270 million in capital expenditures focused on high return real estate, Consumer First Formula investments, largely related to product assortment and logistics and fulfillment upgrades.”
Free cash flow (FY2026): “We expect to generate approximately $600 million of free cash flow in 2026, including a $65 million after-tax benefit from the interchange fee litigation settlement.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 7.3B | 7.3B | 7.3B | 7.4B | 7.6B | 7.9B |
| Net Income | 649M | 649M | 798M | 878M | 800M | 1.3B |
| EPS | $3.11 | $3.11 | $3.61 | $3.84 | $3.43 | $4.88 |
| Free Cash Flow | 865M | 865M | 660M | 656M | 816M | 1.2B |
| ROIC | 50.0% | 47.6% | 56.1% | 71.3% | 75.2% | 86.9% |
| Gross Margin | 43.7% | 43.7% | 44.3% | 43.6% | 43.1% | 48.9% |
| Debt/Equity | 0.00 | -3.04 | -2.80 | -2.70 | -2.20 | -3.20 |
| Dividends/Share | $0.80 | $0.80 | $0.80 | $0.80 | $0.80 | $0.45 |
| Operating Income | 1.1B | 1.1B | 1.3B | 1.3B | 1.4B | 2.0B |
| Operating Margin | 15.4% | 15.4% | 17.3% | 17.3% | 18.2% | 25.5% |
| ROE | 0.0% | -48.7% | -53.0% | -45.8% | -43.0% | -122.3% |
| Shares Outstanding | 209M | 209M | 221M | 229M | 233M | 273M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 11.5B | 12.2B | 12.6B | 12.6B | 13.2B | 5.4B | 6.4B | 7.9B | 7.6B | 7.4B | 7.3B | 7.3B | 7.3B |
| Gross Margin | 42.0% | 42.8% | 40.8% | 39.3% | 37.0% | 44.2% | 48.1% | 48.9% | 43.1% | 43.6% | 44.3% | 43.7% | 43.7% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.9B | 3.0B | 3.1B | 3.2B | 3.6B | 1.3B | 1.5B | 1.8B | 1.9B | 2.0B | 2.0B | 2.1B | 2.1B |
| EBIT | 2.0B | 2.2B | 2.0B | 1.7B | 1.2B | 1.0B | 1.6B | 2.0B | 1.4B | 1.3B | 1.3B | 1.1B | 1.1B |
| Op. Margin | 17.1% | 18.0% | 15.9% | 13.7% | 9.3% | 19.2% | 24.9% | 25.5% | 18.2% | 17.3% | 17.3% | 15.4% | 15.4% |
| Net Income | 1.0B | 1.3B | 1.2B | 983M | 644M | -366M | 844M | 1.3B | 800M | 878M | 798M | 649M | 649M |
| Net Margin | 9.1% | 10.3% | 9.2% | 7.8% | 4.9% | -6.8% | 13.1% | 16.9% | 10.6% | 11.8% | 10.9% | 8.9% | 8.9% |
| Non-Recurring | 0 | -2.0M | 0 | 0 | 23M | 720M | 3.0M | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 43.1% | 47.6% | 45.7% | 39.5% | 26.7% | 26.2% | 53.5% | 86.9% | 75.2% | 71.3% | 56.1% | 47.6% | 50.0% |
| ROE | 5788.9% | N/A | -234.4% | -132.7% | -79.4% | 30.9% | -78.1% | -122.3% | -43.0% | -45.8% | -53.0% | -48.7% | 0.0% |
| ROA | 14.3% | 15.7% | 13.9% | 12.0% | 7.9% | -4.0% | 7.8% | 15.2% | 13.9% | 16.0% | 15.4% | 13.1% | 12.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.8B | 2.0B | 2.0B | 1.4B | 1.4B | 1.2B | 2.0B | 1.5B | 1.1B | 954M | 886M | 1.1B | 1.1B |
| Free Cash Flow | 1.1B | 1.3B | 1.0B | 699M | 748M | 778M | 1.8B | 1.2B | 816M | 656M | 660M | 865M | 865M |
| Owner Earnings | 1.3B | 1.5B | 1.4B | 780M | 733M | 561M | 1.5B | 1.1B | 885M | 642M | 564M | 817M | 817M |
| CapEx | 715M | 727M | 990M | 707M | 629M | 458M | 228M | 270M | 328M | 298M | 226M | 237M | 237M |
| Maint. CapEx | 398M | 415M | 472M | 524M | 547M | 588M | 521M | 363M | 221M | 269M | 282M | 254M | 254M |
| Growth CapEx | 317M | 312M | 518M | 183M | 82M | 0 | 0 | 0 | 107M | 29M | 0 | 0 | 0 |
| D&A | 398M | 415M | 472M | 524M | 547M | 588M | 521M | 363M | 221M | 269M | 282M | 254M | 254M |
| CapEx/OCF | 40.0% | 38.9% | 49.7% | 50.3% | 45.7% | 37.1% | 11.2% | 18.1% | 28.7% | 31.2% | 25.5% | N/A | 21.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 691M | 1.2B | 1.3B | 686M | 666M | 332M | 83M | 120M | 186M | 182M | 177M | 167M | 167M |
| Dividend Yield | 6.7% | 7.8% | 10.0% | 8.0% | 10.7% | 7.8% | 1.6% | 0.8% | 2.1% | 2.3% | 2.2% | N/A | 4.0% |
| Share Buybacks | 87M | 483M | 435M | 446M | 198M | 0 | 0 | 2.0B | 1.3B | 148M | 401M | 401M | 401M |
| Buyback Yield | 0.5% | 2.5% | 3.4% | 3.8% | 3.0% | N/A | N/A | 14.6% | 13.7% | 1.6% | 4.9% | 0.0% | 9.7% |
| Stock-Based Comp | 90M | 97M | 96M | 102M | 97M | 87M | 50M | 46M | 38M | 43M | 40M | 31M | 31M |
| Debt Repayment | 213M | 0 | 742M | 540M | 52M | 799M | 1.3B | 1.7B | 0 | 447M | 522M | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 3.0B | 3.2B | 3.8B | 4.3B | 4.4B | 4.0B | 2.8B | 2.9B | 3.6B | 3.3B | 3.2B | 2.9B | 2.9B |
| Cash & Equiv. | 1.7B | 2.5B | 1.9B | 1.5B | 1.4B | 1.5B | 3.6B | 2.0B | 1.2B | 1.1B | 674M | 953M | 953M |
| Long-Term Debt | 4.7B | 5.7B | 5.7B | 5.7B | 5.7B | 5.5B | 6.4B | 4.9B | 4.9B | 4.4B | 3.9B | 3.6B | 3.6B |
| Debt/Equity | 262.33 | -22.09 | -7.87 | -7.69 | -6.69 | -3.70 | -9.62 | -3.20 | -2.20 | -2.70 | -2.80 | -3.04 | 0.00 |
| Interest Coverage | 6.0 | 6.6 | 5.1 | 4.3 | 3.2 | 2.8 | 3.7 | 5.2 | 4.0 | 3.7 | 4.1 | 4.1 | 4.1 |
| Equity | 18M | -259M | -729M | -753M | -869M | -1.5B | -662M | -1.5B | -2.2B | -1.6B | -1.4B | -1.3B | -1.3B |
| Total Assets | 7.5B | 8.5B | 8.2B | 8.1B | 8.1B | 10.1B | 11.6B | 6.0B | 5.5B | 5.5B | 4.9B | 5.1B | 5.1B |
| Total Liabilities | 7.5B | 8.8B | 8.9B | 8.9B | 9.0B | 11.6B | 12.2B | 7.5B | 7.7B | 7.1B | 6.3B | 6.3B | 6.3B |
| Intangibles | 411M | 411M | 411M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 233M | 315M | 205M | -1.4B | -1.5B | -2.2B | -1.4B | -1.8B | -2.4B | -1.8B | -1.6B | -1.4B | -1.4B |
| Working Capital | 1.5B | 2.3B | 1.5B | 1.3B | 1.3B | 873M | 2.8B | 1.7B | 887M | 826M | 592M | 428M | 428M |
| Current Assets | 3.2B | 4.2B | 3.5B | 3.3B | 3.3B | 3.2B | 5.6B | 3.0B | 2.3B | 2.1B | 1.8B | 2.0B | 2.0B |
| Current Liabilities | 1.7B | 1.9B | 2.0B | 2.0B | 2.0B | 2.4B | 2.8B | 1.3B | 1.4B | 1.3B | 1.2B | 1.6B | 1.6B |
| Per Share Data | |||||||||||||
| EPS | 3.50 | 4.22 | 3.98 | 3.42 | 2.31 | -1.32 | 3.00 | 4.88 | 3.43 | 3.84 | 3.61 | 3.11 | 3.11 |
| Owner EPS | 4.36 | 5.10 | 4.89 | 2.71 | 2.63 | 2.02 | 5.22 | 3.96 | 3.79 | 2.81 | 2.55 | 3.92 | 3.92 |
| Book Value | 0.06 | -0.87 | -2.51 | -2.62 | -3.12 | -5.41 | -2.35 | -5.56 | -9.46 | -7.12 | -6.27 | -6.14 | -6.14 |
| Cash Flow/Share | 6.00 | 6.83 | 6.84 | 4.89 | 4.94 | 4.46 | 7.25 | 5.46 | 4.90 | 4.17 | 4.01 | 5.28 | 4.33 |
| Dividends/Share | 2.36 | 4.00 | 4.40 | 2.40 | 2.40 | 1.20 | 0.30 | 0.45 | 0.80 | 0.80 | 0.80 | 0.80 | 0.80 |
| Shares Out. | 297.7M | 296.9M | 291.0M | 287.4M | 278.8M | 277.3M | 281.3M | 273.2M | 233.2M | 228.6M | 221.1M | 208.7M | 208.7M |
| Valuation | |||||||||||||
| P/E Ratio | 16.2 | 15.7 | 11.0 | 11.9 | 10.1 | N/A | 10.0 | 10.1 | 12.0 | 10.4 | 10.2 | N/A | 6.4 |
| P/FCF | 12.8 | 12.2 | 10.3 | 13.5 | 7.1 | 5.2 | 4.7 | 11.0 | 11.7 | 13.9 | 12.3 | N/A | 4.8 |
| EV/EBIT | 9.4 | 9.2 | 7.3 | 8.4 | 7.8 | 29.5 | 4.8 | 7.1 | 8.7 | 8.8 | 8.4 | N/A | 6.3 |
| Price/Book | 940.1 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 1.1 | 1.5 | 1.2 | 0.8 | 0.6 | 0.4 | 0.8 | 1.8 | 1.2 | 1.1 | 1.1 | N/A | 0.6 |
| FCF Yield | 6.3% | 6.6% | 7.9% | 6.0% | 11.4% | 15.5% | 21.5% | 9.1% | 8.5% | 7.2% | 8.1% | N/A | 20.8% |
| Market Cap | 16.9B | 19.6B | 12.7B | 11.7B | 6.5B | 5.0B | 8.4B | 13.5B | 9.6B | 9.1B | 8.1B | 0 | 4.2B |
| Avg. Price | 34.74 | 50.66 | 43.40 | 29.98 | 22.32 | 15.42 | 18.44 | 53.16 | 37.77 | 34.39 | 36.88 | 0.00 | 19.90 |
| Year-End Price | 45.95 | 53.45 | 35.36 | 32.91 | 18.95 | 14.71 | 30.00 | 49.28 | 41.08 | 39.91 | 36.71 | 0.00 | 19.90 |
Bath & Body Works, Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Bath & Body Works, Inc. trades at 4.7x trailing earnings, compared to its 15-year median P/E of 10.3x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 6.1x vs a median of 11.0x. The company's 5-year average ROIC is 67.4% with a gross margin of 44.7%. Total shareholder yield (dividends + buybacks) is 13.7%. At current prices, the estimated annualized return to fair value is -6.8%.
Bath & Body Works, Inc. (BBWI) has a net profit margin of 8.9%. This is a modest margin.
Bath & Body Works, Inc. (BBWI) generated $865 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Bath & Body Works, Inc. (BBWI) reported earnings per share (EPS) of $3.11 in its most recent fiscal year.
Bath & Body Works, Inc. (BBWI) has a return on equity (ROE) of -48.7%. A negative ROE may indicate losses or negative equity.
Bath & Body Works, Inc. (BBWI) has a 5-year average gross margin of 44.7%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for Bath & Body Works, Inc. (BBWI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Bath & Body Works, Inc. (BBWI) has a book value per share of $-6.14, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the Consumer First Formula to drive sequential improvement throughout 2026 and accelerate into 2027, with new product innovations, elevated brand positioning, and expanded distribution channels beginning to generate visible consumer impact in the back half of 2026 and building momentum through 2027. The company is investing in product assortment, digital platform enhancements, and brand marketing while targeting $250 million in cost savings over two years to fund these strategic initiatives and maintain financial discipline. Management acknowledges that underlying business trends remain pressured in the near term but expects the full financial impact of transformation actions to materialize over time as consumers respond to new product forms, upgraded packaging, higher fragrance loads, and improved digital experiences. International partners are showing confidence in the strategy with planned store expansion, and the company expects to see acceleration in new-to-brand customer growth, improved performance in hero categories, and expanded reach through new distribution channels as the year progresses.
Based on recent SEC filings and earnings calls, Bath & Body Works, Inc. (BBWI) has provided the following forward guidance: Net sales: down 4.5% to down 2.5% (FY2026); Adjusted earnings per diluted share: $2.40-$2.65 (FY2026); Capital expenditures: approximately $270 million (FY2026); Free cash flow: approximately $600 million (FY2026); North American square footage growth: approximately 1% (FY2026), plus 2 additional metrics.
North American square footage growth (FY2026): “We expect to reduce the number of new store openings this year, resulting in square footage growth of approximately 1%.”
International net sales (FY2026): “International net sales are expected to be up mid to high single digits.”
Annual dividend per share (FY2026): “We expect to maintain our annual dividend of $0.80 per share and will redeem our $284 million of January 2027 notes in the first quarter.”