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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 reported a significant increase in institutional investment as SG Americas Securities LLC acquired 409831 shares boosting its holdings by 7253% The institutional investor now owns 466338 shares of the company This news comes as investors await the companys next earnings release No recent earnings release data available Analysts at various firms have given mixed recommendations some have a buy rating while others have a hold or sell rating from various analysts

1.c. Company Highlights

2. Bath & Body Works' Q4 2025 Earnings: A Step Towards Recovery

Bath & Body Works, Inc. reported its fourth quarter 2025 earnings, with net sales of $2.7 billion, down 2.3% year-over-year, and adjusted EPS of $2.05, a 2% decline. The company's performance was better than expected, with adjusted EPS beating estimates of $1.77. The gross profit rate was not explicitly stated, but the company guided for a gross profit rate of approximately 42.4% for 2026, indicating a potential margin pressure. The company's adjusted EPS decline was relatively contained, considering the challenging competitive landscape.

Publication Date: Mar -05

📋 Highlights
  • Q4 2025 Performance:: Net sales of $2.7B (-2.3% YoY), adjusted EPS of $2.05 (-2% YoY), below internal standards but ahead of expectations.
  • 2026 Guidance:: Net sales projected down 4.5%-2.5%, with adjusted EPS of $2.40-$2.65 and $250M cost savings target via Fuel for Growth program.
  • Amazon Expansion:: $50M growth expected from Amazon launch, leveraging elevated positioning and product storytelling to attract new consumers.
  • Shareholder Returns:: $167M returned via dividends and $400M in share repurchases (15.1M shares) in 2025, with 2.5x gross leverage target maintained.
  • Margin Pressures:: Gross margin forecast includes 130 bps pressure from tariffs, wage inflation, and product investments, countered by pricing power and cost discipline.

Strategic Priorities and Progress

The company is focusing on four strategic priorities: creating disruptive and innovative products, reigniting the brand, winning in the marketplace, and operating with speed and efficiency. It has made progress in these areas, including launching new products, modernizing its brand identity, and expanding its distribution channels. The company launched on Amazon in February, which is expected to make a meaningful financial impact, with $50 million in growth from expanded distribution efforts.

Guidance and Outlook

For 2026, the company expects net sales to be down 4.5% to down 2.5%, with a gross profit rate of approximately 42.4% and adjusted SG&A rate of approximately 29.2%. It targets $250 million in cost savings over two years through its Fuel for Growth program, with approximately $175 million in 2026. The company expects full-year adjusted earnings per diluted share of $2.40 to $2.65. Analysts estimate next year's revenue growth at -2.2%, indicating a challenging near-term outlook.

Valuation and Return to Shareholders

With a P/E Ratio of 6.97 and a Dividend Yield of 3.48%, the company's valuation appears reasonable. The company's return to shareholders is a priority, with $167 million returned through dividends and $400 million spent on share repurchases in 2025. The company's commitment to its 2.5x gross leverage target is maintained, with flexibility to return cash to shareholders after funding its Consumer First Formula priorities.

Competitive Landscape and Innovation

The competitive landscape is increasingly competitive, with new entrants and established players investing in content creators and packaging. The company is addressing this by focusing on bold and disruptive product innovation, new packaging, and benefit-led marketing. The company is revamping its approach to collaborations, using them to drive energy into priority franchises, iconic fragrances, and seasonal collections. Early consumer feedback on dermatologist-approved claims has been positive, indicating a potential trend break in new consumer acquisition.

3. NewsRoom

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What Makes a Perfect LBO Target: These 4 Stocks Fit the Profile Right Now

Apr -01

Source: 247wallst.com

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BATH & BODY WORKS, INC. (BBWI) INVESTIGATION ALERT: Bernstein Liebhard Announces Investigation of Bath & Body Works, Inc.

Mar -31

Source: globenewswire.com

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SG Americas Securities LLC Acquires 409,831 Shares of Bath & Body Works, Inc. $BBWI

Mar -30

Source: defenseworld.net

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BATH & BODY WORKS, INC. (BBWI) INVESTIGATION ALERT: Bernstein Liebhard Announces Investigation of Bath & Body Works, Inc.

Mar -26

Source: globenewswire.com

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BATH & BODY WORKS, INC. (BBWI) INVESTIGATION ALERT: Bernstein Liebhard Announces Investigation of Bath & Body Works, Inc.

Mar -20

Source: globenewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Bath & Body Works, Inc. of Class Action Lawsuit and Upcoming Deadlines – BBWI

Mar -17

Source: globenewswire.com

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CLASS ACTION DEADLINE TONIGHT MONDAY, MARCH 16: Faruqi & Faruqi, LLP Reminds Bath & Body Works Investors of the Securities Class Action Lawsuit Deadline on March 16, 2026

Mar -16

Source: businesswire.com

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BBWI Investors Have Opportunity to Lead Bath & Body Works, Inc. Securities Fraud Lawsuit with the Schall Law Firm

Mar -16

Source: prnewswire.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

Stock-Card
GPC

A-Score: 5.6/10

Value: 3.7

Growth: 5.1

Quality: 4.2

Yield: 6.0

Momentum: 6.0

Volatility: 8.7

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Casey's General Stores

A-Score: 5.5/10

Value: 2.9

Growth: 7.0

Quality: 5.4

Yield: 0.0

Momentum: 9.0

Volatility: 8.7

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Ulta Beauty

A-Score: 5.3/10

Value: 2.9

Growth: 7.7

Quality: 6.3

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

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Stock-Card
Bath & Body Works

A-Score: 5.0/10

Value: 9.3

Growth: 4.2

Quality: 5.9

Yield: 6.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Academy Sports

A-Score: 4.7/10

Value: 7.1

Growth: 6.4

Quality: 5.6

Yield: 1.0

Momentum: 4.0

Volatility: 4.3

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Murphy USA

A-Score: 4.0/10

Value: 3.9

Growth: 8.0

Quality: 4.1

Yield: 0.0

Momentum: 1.0

Volatility: 7.0

1-Year Total Return ->

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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

18.57$

Current Price

18.57$

Potential

-0.00%

Expected Cash-Flows