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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on BBWI

Breaking News: Bath & Body Works Inc. is under investigation for possible violations of federal securities laws, according to The Law Offices of Frank R. Cruz. The probe comes as shares have hit multi-year lows, down over 20% from prior week's pre-earnings levels. The company's CEO and CFO are set to present at the Morgan Stanley Global Consumer & Retail conference. No recent earnings release data is available. Analysts at this time do not have enough data to make a recommendation. Shareholders who lost money are urged to contact The Law Offices of Frank R. Cruz.

1.c. Company Highlights

2. Bath & Body Works Faces Challenges, Outlines Revitalization Plan

Bath & Body Works, Inc. reported third-quarter 2025 results, with net sales of $1.6 billion, down 1% year-over-year, and adjusted earnings per diluted share of $0.35, both below expectations. The company's gross profit rate was not explicitly mentioned, but it is expected to be approximately 44.5% in the fourth quarter. The actual EPS came out at $0.35, relative to estimates at $0.4. The decline was attributed to a tougher consumer environment, and the company acknowledged that its strategies have not delivered growth.

Publication Date: Nov -23

📋 Highlights
  • Declining Performance:: Q3 2025 net sales fell 1% to $1.6 billion, with adjusted EPS at $0.35, both below expectations, reflecting a challenging consumer environment.
  • Cost Savings Initiative:: A $250 million cost reduction plan is underway over two years, with over half ($125+ million) targeted for 2026, funded by operational efficiency and SKU rationalization.
  • Amazon Expansion:: Launching on Amazon in early 2026 with core products to boost sales, building on existing $60–80 million in Amazon sales, and enhancing brand visibility.
  • Shareholder Returns:: $128 million returned to shareholders via $41 million in dividends and $87 million in share repurchases (3 million shares) in Q3, with $343 million total repurchases year-to-date.

Strategic Reset and Cost Savings

The company outlined a comprehensive plan to revitalize the brand, focusing on four pillars: creating innovative products, reigniting the brand, winning in the marketplace, and operating with speed and efficiency. The plan includes investing in new talent, optimizing expenses, and prioritizing high-value work. The company expects to deliver $250 million in cost savings over the next two years, with over half identified for 2026. The savings from the cost reduction program will be used to offset investments and will not flow directly to the bottom line.

Amazon Launch and Digital Investments

The company will launch on Amazon early next year, starting with a small assortment of core products. This move is expected to bring in significant sales and help reignite the brand. The company is also investing in digital, with a relaunch of its app and website, and new product photography. The company aims to revamp its iconic franchises and fragrances, build a world around them, and take them to new consumers through alternative distribution channels.

Valuation and Outlook

With a P/E Ratio of 4.54 and an EV/EBITDA of 5.52, the company's valuation appears reasonable. Analysts estimate next year's revenue growth at -1.8%. The company's guidance for the fourth quarter expects sales to be down high single digits versus last year, and earnings per diluted share of at least $1.70. The company's loyalty program remains a competitive advantage, with 39 million loyalty customers driving 80% of sales.

Capital Allocation and Debt Reduction

The company targets a leverage ratio of 2.5x and will prioritize debt reduction, alongside buybacks, while maintaining its capital allocation priorities. Cash flow generation is a key focus, with the company typically starting the year with $500 million in cash to fund operations. The company's free cash flow yield is 24.99%, indicating a strong ability to generate cash.

3. NewsRoom

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Bath & Body Works, Inc. (NYSE:BBWI) Receives Average Rating of “Hold” from Analysts

Dec -04

Source: defenseworld.net

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INVESTOR ALERT: Investigation of Bath & Body Works, Inc. (BBWI) by Holzer & Holzer, LLC

Dec -03

Source: globenewswire.com

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Bath & Body Works, Inc. (BBWI) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Securities Fraud Investigation Into Bath & Body Works, Inc. (BBWI) Announced – Shareholders Who Lost Money Urged to Contact Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm

Dec -02

Source: businesswire.com

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Bath & Body Works, Inc. (BBWI) Shareholders Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation

Dec -02

Source: businesswire.com

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Securities Fraud Investigation Into Bath & Body Works, Inc. (BBWI) Announced – Shareholders Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz

Dec -02

Source: businesswire.com

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Bath & Body Works to Present at the Morgan Stanley Global Consumer & Retail Conference

Dec -01

Source: globenewswire.com

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Bath & Body Works Hits Multi-Year Lows: Bargain or Trap?

Dec -01

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.92%)

6. Segments

Home Fragrance, Body Care and Soap and Sanitizer Products

Expected Growth: 4.92%

Bath & Body Works, Inc.'s 4.92% growth in Home Fragrance, Body Care, and Soap and Sanitizer Products is driven by increasing consumer demand for wellness and self-care, premiumization trends, and the company's successful brand revamp and product innovation strategies.

7. Detailed Products

Body Care

Moisturizing lotions, creams, and body washes to soften and nourish the skin

Home Fragrance

Candles, wallflowers, and room sprays to freshen and fragrance the home

Soaps & Sanitizers

Hand soaps, sanitizers, and body washes to clean and protect the skin

Candles

Scented and unscented candles in various fragrances and sizes

Wallflowers

Plug-in air fresheners that provide continuous fragrance

Room Sprays

Instant fragrance sprays for a quick room refresh

Gift Sets

Pre-packaged sets of products in various fragrances and sizes

8. Bath & Body Works, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bath & Body Works has a moderate threat of substitutes due to the presence of other personal care and home fragrance brands in the market. However, the company's strong brand recognition and loyalty program help to mitigate this threat.

Bargaining Power Of Customers

Bath & Body Works has a low bargaining power of customers due to its strong brand reputation and customer loyalty. Customers are willing to pay a premium for the company's products, reducing their bargaining power.

Bargaining Power Of Suppliers

Bath & Body Works has a moderate bargaining power of suppliers due to its dependence on a few key suppliers for raw materials. However, the company's large scale of operations and long-term contracts help to mitigate this risk.

Threat Of New Entrants

Bath & Body Works has a low threat of new entrants due to the high barriers to entry in the personal care and home fragrance industry. The company's strong brand recognition, large scale of operations, and established distribution network make it difficult for new entrants to compete.

Intensity Of Rivalry

Bath & Body Works operates in a highly competitive industry with many established players. The company faces intense competition from other personal care and home fragrance brands, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 155.30%
Debt Cost 7.20%
Equity Weight -55.30%
Equity Cost 13.37%
WACC 3.79%
Leverage -280.82%

11. Quality Control: Bath & Body Works, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Bath & Body Works

A-Score: 5.0/10

Value: 8.8

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Quality: 6.1

Yield: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.12$

Current Price

19.12$

Potential

-0.00%

Expected Cash-Flows