📊 BBWI Key Takeaways
Investment Thesis
Bath & Body Works demonstrates solid operational profitability with healthy margins (43.7% gross, 15.4% operating) and strong free cash flow generation ($865M), but the company faces severe balance sheet distress with negative stockholders' equity of -$1.3B and elevated debt of $3.9B. Declining net income (-18.7% YoY) combined with a capital structure that limits financial flexibility presents material downside risk despite operational cash generation.
BBWI Strengths
- Strong free cash flow generation of $865M representing 11.9% of revenue demonstrates operational cash conversion
- Healthy gross margins at 43.7% and operating margins at 15.4% indicate pricing power and operational efficiency
- Adequate interest coverage ratio of 4.1x suggests near-term debt service capability despite leverage
- Positive operating cash flow of $1.1B provides cushion for debt servicing and capital allocation
BBWI Risks
- Negative stockholders' equity of -$1.3B indicates technical insolvency and severely constrained financial flexibility for investments or acquisitions
- Declining profitability with net income down 18.7% YoY despite flat revenue suggests margin compression and operational headwinds
- Elevated long-term debt of $3.9B against modest equity base creates refinancing risk and limits strategic optionality
- Weak quick ratio of 0.83x indicates potential short-term liquidity stress if operational cash flow deteriorates
Key Metrics to Watch
- Net income trajectory and margin trends - critical to assess if decline is cyclical or structural
- Operating cash flow sustainability - must remain strong to service debt and fund operations
- Debt reduction progress - ability to return to positive equity is essential for long-term viability
- Revenue growth recovery - current flat growth limiting operational leverage opportunities
BBWI Financial Metrics
💡 AI Analyst Insight
Bath & Body Works, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BBWI Profitability Ratios
BBWI vs Consumer Sector
How Bath & Body Works, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BBWI Balance Sheet & Liquidity
BBWI 5-Year Financial Trend
5-Year Trend Summary: Bath & Body Works, Inc.'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $3.84 reflects profitable operations.
BBWI Growth Metrics (YoY)
BBWI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.6B | $77.0M | $0.37 |
| Q2 2025 | $1.5B | $64.0M | $0.30 |
| Q1 2025 | $1.4B | $87.0M | $0.38 |
| Q3 2024 | $1.6B | $106.0M | $0.49 |
| Q2 2024 | $1.5B | $99.0M | $0.43 |
| Q1 2024 | $1.4B | $81.0M | $0.35 |
| Q3 2023 | $1.6B | $91.0M | $0.40 |
| Q2 2023 | $1.6B | $99.0M | $0.43 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BBWI Capital Allocation
BBWI SEC Filings
Access official SEC EDGAR filings for Bath & Body Works, Inc. (CIK: 0000701985)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BBWI
What is the AI rating for BBWI?
Bath & Body Works, Inc. (BBWI) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BBWI's key strengths?
Strong free cash flow generation of $865M representing 11.9% of revenue demonstrates operational cash conversion. Healthy gross margins at 43.7% and operating margins at 15.4% indicate pricing power and operational efficiency.
What are the risks of investing in BBWI?
Negative stockholders' equity of -$1.3B indicates technical insolvency and severely constrained financial flexibility for investments or acquisitions. Declining profitability with net income down 18.7% YoY despite flat revenue suggests margin compression and operational headwinds.
What is BBWI's revenue and growth?
Bath & Body Works, Inc. reported revenue of $7.3B.
Does BBWI pay dividends?
Bath & Body Works, Inc. pays dividends, with $167.0M distributed to shareholders in the trailing twelve months.
Where can I find BBWI SEC filings?
Official SEC filings for Bath & Body Works, Inc. (CIK: 0000701985) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BBWI's EPS?
Bath & Body Works, Inc. has a diluted EPS of $3.11.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.