📈 Price History

Ratio Health

— Excellent

— Good

— Average

— Poor

By Category

📊 Peer Medians

About

Bath & Body Works, Inc. operates as a specialty retailer of personal care and home fragrance products. The company offers body and home fragrances, including 3-wick candles, home fragrance diffusers, fine fragrance mists, eau de parfum, body wash, hand soaps, body lotions, and body creams, as well as sanitizer and other products. It sells its products under the Bath & Body Works and other brand names through retail stores and e-commerce sites in the United States and Canada, as well as through international stores operated by partners under the franchise, license, and wholesale arrangements. 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.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

See full financials →

📊 Quick Scorecard

Loading…

⭐ Superinvestors Holding BBWI

View All Superinvestors →

Manager	Shares	Value	% of Fund	Period
Steve Cohen Point72 Asset Management	3.75M	$70.1M	0.09%	Mar 2026
Jim Simons Renaissance Technologies LLC	2.73M	$51.0M	0.08%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2026

Confident Specific

Management used specific language: 'solid results', 'high end of our guidance range', 'raising the low end of our full year adjusted earnings per share guidance', and detailed three no-regret moves. They acknowledged challenges but framed them as opportunities with concrete near-term actions.

Q3 2026

Mixed

The CEO opens by stating results 'do not live up to expectations' and 'lower expectations for the fourth quarter', then expresses confidence with 'I remain confident in our ability to do so', mixed with defensive language like 'While the consumer environment is tougher, this is no excuse'.

Q4 2026

Confident Specific

Management acknowledges underperformance but provides concrete examples of early progress (moisturizing hand soap doubling productivity, Champagne Toast best year ever) and detailed multi-year plan milestones. Avoids defensiveness by owning mistakes and articulating a clear, structured turnaround with measurable signposts.

Q1 2027 latest

Confident Specific

Management repeatedly cites specific proof points (e.g., double-digit AUR and SKU productivity on new soaps, 20% growth in White Barn Neutrals, strong Amazon week-over-week growth) and reaffirms full-year guidance, while acknowledging the business remains pressured and this is a multi-year transformation.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is slightly strengthened after this call. Early proof points (moisturizing hand soaps, White Barn Neutrals, Amazon acquisition) show that the Consumer First Formula is gaining traction, though still too small to move overall financials. Guidance was reaffirmed, providing stability. The key risk remains body care (down mid-teens) and whether H2 innovation can drive a return to growth. Investors should watch Q2 body care performance and the rollout of store navigation improvements and new product forms (flat-back sanitizer, pump body wash) for signs of scaling. The CFO transition is managed with an interim veteran, which reduces disruption. Overall, thesis unchanged but with incremental evidence that the strategy is on track; watch for sustained improvement in H2 to confirm inflection.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Bath & Body Works Q1 2027 net sales down 3.2% to $1.4B, reaffirms FY EPS $2.40-$2.65

Revenue & Profitability

First-quarter net sales were $1.4 billion, down 3.2% versus prior year. Adjusted operating income was $151 million (11% of net sales). Adjusted earnings per diluted share were $0.32, ahead of expectations. The company expects full-year 2026 adjusted EPS of $2.40-$2.65 and net sales decline of 4.5% to 2.5%. Free cash flow for fiscal 2026 is expected to be approximately $600 million, including a $66 million after-tax benefit from the interchange fee litigation settlement.

Outlook

Management describes the consumer as value-seeking and the underlying business trends as pressured and consistent with past quarters. Tariffs and crude oil inflation are headwinds, with tariffs and inflationary pressures assumed roughly neutral year-over-year in guidance (no tariff refunds assumed). Management expects product innovation and brand modernization benefits to build through the year and become more visible in financials heading into 2027, but is not calling a near-term inflection point.

Growth Drivers

Key growth levers include product innovation (new hand soaps, body care upgrades, new forms like flat-back sanitizer and pump on moisturizing body wash); brand modernization (White Barn Neutrals grew ~20% and attracted younger consumers); marketplace expansion (Amazon delivering strong double-digit weekly growth and new customer acquisition); international (retail sales up double digits); and store experience improvements (clearer navigation rolling out summer 2026).

Balance Sheet & CapEx

Full-year 2026 capital expenditures are expected to be approximately $270 million, focused on high-return real estate, Consumer First Formula investments (product assortment, logistics, and fulfillment upgrades). In Q1, capital expenditures were $49 million. The company also redeemed $284 million of January 2027 notes.

Margins

First-quarter adjusted gross profit rate was 42.7%, down 270 basis points, driven by a 210 bps decline in adjusted merchandise margin (including ~130 bps from tariffs, inflation, and crude oil impacts). B&O dollars were flat but deleveraged due to sales decline. SG&A rate was 31.7%, up 100 bps. For full year 2026, gross margin guidance is 42.4%, with merchandise margin deleverage of ~40 bps primarily from product investments, and B&O deleverage of ~90 bps from sales declines.

Key Risks

Key risks flagged include tariffs and crude oil inflation (tariffs cost ~$80 million in fiscal 2025, assumed roughly neutral in 2026 guidance); Middle East conflict impacting international shipped product sales; consumer value-seeking behavior pressuring top line; and execution risk in the multi-year Consumer First Formula transformation. Analysts questioned whether a return to positive sales growth is expected in the second half, and management did not guide to a specific inflection point.

Generated by AI · Q1 2027 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

🔍

🔎 See cross-company document search → ?

📞 Earnings Call Transcripts (5)

Q1 2027 Q1 2027 2026-05-27

Net sales declined 3.2% year-over-year, with adjusted EPS of $0.32, both ahead of expectations. Body care was the main drag, but innovation and digital expansion, including Amazon, are showing early positive signs. Full-year guidance is reaffirmed.

Q4 2026 Q4 2026 2026-03-04

Q4 net sales and EPS exceeded expectations despite a 2% sales decline, driven by early progress on innovation and digital expansion. 2026 will be an investment year, with sales expected to decline but international and digital channels poised for growth.

Q3 2026 Q3 2026 2025-11-20

Q3 sales and earnings missed expectations, prompting a strategic reset focused on core categories, cost savings, and digital expansion. Guidance for Q4 and 2026 is cautious, with no growth expected until late 2026 as new initiatives roll out.

Q2 2026 Q2 2026 2025-08-28

Q2 net sales rose 1.5% to $1.5B, with adjusted EPS at $0.37, both at the high end of guidance. Full-year EPS guidance was raised, and strategic initiatives include digital upgrades, new distribution channels, and a multi-year Disney partnership. Tariffs and higher costs remain key headwinds.

Q1 2026 Q1 2026 2025-05-29

Net sales rose 2.9% to $1.4B, with EPS of $0.49 beating guidance, driven by innovation and a successful Disney collaboration. Guidance for 2025 is maintained despite tariff risks, with continued focus on digital, loyalty, and international growth.

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯

Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.

📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.