Bath & Body Works, Inc. (BBWI) AI Stock Analysis

Bath & Body Works, Inc. is a specialty retailer of home fragrance, body care, and hygiene products. The company markets its offerings under popular brands like Bath & Body Works and White Barn through a network of specialty retail stores across the United States and Canada. Additionally, it reaches international markets through franchise, license, and wholesale agreements, expanding its global footprint. As of January 29, 2022, Bath & Body Works operated 1,755 company-operated retail outlets and 338 international partner-operated stores. Formerly known as L Brands, Inc., the company rebranded in August 2021 to focus on its flagship brand.

Annual revenue contracted from $7.88B in FY2022 to $7.29B in FY2026, though its 5-year revenue CAGR remained positive at 2.5%. Net income decreased from $1.33B in FY2022 to $649.0M in FY2026, with net margin narrowing from 16.9% to 8.9% over the same timeframe. In FY2026, annual diluted EPS was $3.26, down slightly from $3.33 in FY2025. Over the trailing twelve months ending July 31, 2026, revenue stood at $7.21B with a profit margin of 10.8% and EPS of $3.80. In the latest quarter ended July 31, 2026, quarterly revenue fell 2.3% year-over-year, while quarterly earnings grew 93.3%.

As of July 31, 2026, Bath & Body Works held $794.0M in cash and short-term investments against total debt of $4.74B, resulting in net debt of $3.95B. The company recorded negative shareholders' equity of -$1.05B and total assets of $5.16B, with a current ratio of 1.20. In FY2026, the company generated $1.10B in operating cash flow and $865.0M in free cash flow. Capital allocation in FY2026 included $237.0M in capital expenditures, $401.0M in share buybacks, and $167.0M in dividends paid, contributing to a 24.3% reduction in share count over 5 years.

Bath & Body Works trades at a trailing P/E of 5.3x and a forward P/E of 6.3x, compared to the median of its US-listed Consumer Cyclical peers of 18.0x and 14.1x, respectively. Its enterprise value to EBITDA stands at 5.0x, below the peer median of 11.1x, while its price-to-sales ratio is 0.6x versus the peer median of 0.7x. Over the past year, the stock fell 19.2%, trailing the S&P 500 (SPY) return of 16.8%. Over a 5-year period, the stock declined 64.8%, while the S&P 500 gained 83.0%.

Bath & Body Works pays a quarterly dividend with a forward annualized payout of $0.80 per share, yielding 3.97% based on its last close. The payout ratio stands at 23.9%, and the company has paid consecutive dividends for 42 years. Its annualized 5-year dividend growth rate is 27.0%, and the last ex-dividend date was August 21, 2026.

Wall Street coverage includes 5 Strong Buy, 13 Hold, and 1 Strong Sell ratings among analysts. The mean price target is $24.06, representing an upside of 19.5% from the last close of $20.14. For the fiscal year ending January 31, 2027, consensus estimates project revenue of $7.10B and EPS of $2.71, reflecting an EPS decline of 15.5%. Bath & Body Works has topped EPS estimates in 3 of the last 4 quarters, and its next earnings release is scheduled for November 19, 2026.

This page is an AI-written research summary of Bath & Body Works, Inc. (BBWI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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