XVARY Composite Score
45
/ 100
Below Average
Combines growth, value, risk, and momentum factors into a single institutional-grade score.
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What it is
Bath & Body Works sells body care and home fragrance through 1,900+ U.S./Canada stores, 500+ international locations, e-commerce, and Amazon — Mar 4, 2026 release.
How it gets paid
Last year Bath & Body Works made $7.29B in revenue. Body care was the main engine at $3.00B, or 41% of sales.
What just happened
Q4 FY2025: net sales ~$2.72B; diluted EPS $1.99.
At a Glance
B balance sheet — gets the job done, barely
10/100 earnings predictability — expect surprises
~6.5x trailing p/e on FY2025 GAAP EPS $3.11 — cheap if earnings hold, expensive if the guide is right
~4% dividend yield — verify current rate and payout policy in IR materials
~8.9% net margin (FY2025 GAAP) — specialty retail, not a software margin
XVARY composite: 45/100 — below average
What They Do
Bath & Body Works sells body care and home fragrance through 1,900+ U.S./Canada stores, 500+ international locations, e-commerce, and Amazon — Mar 4, 2026 release.
You do not go there for a generic soap run. You go there for the scent you already know, in the lotion, candle, mist, and refill sitting all over your house. FY2025 GAAP operating margin was about 15.4% on ~$7.29B net sales — still strong for specialty retail when traffic cooperates, but FY2026 guidance assumes a softer top line.
How They Make Money
$7.29B
FY2025 net sales (−0.2% vs. prior year) · category rows are a model split — reconcile to the 10-K
Body care
$3.00B
Home fragrance
$2.26B
Soap and sanitizer
$1.10B
Gift sets and accessories
$0.51B
International franchise and other
$0.43B
The Products That Matter
Core body care
Body Care
~$3.0B in this snapshot model (~41% of ~$7.29B)
Body care is the largest slice in the illustrative mix below. Treat the dollar figure as a model allocation until you line it up with the 10-K category or segment footnotes.
repeat purchase
Home fragrance
Candles & Diffusers
~$2.26B in this snapshot model
Home fragrance is seasonal and gift-driven — small shifts in traffic or promo can move the quarter. Cross-check the model row against filings and call commentary.
seasonal driver
Cleansing products
Hand Soaps & Sanitizers
~$1.10B in this snapshot model · 1,900+ U.S./Canada stores
Soaps and sanitizers support basket size and traffic; the ~$1.1B line here is part of the same modeled category mix, not a separately reported segment.
traffic support
Key Numbers
~6.5x
trailing p/e
Illustrative: ~$20.23 ÷ FY2025 diluted EPS $3.11 — recalc when the quote or share count moves.
~15.4%
operating margin (FY2025 GAAP)
~$1,126M operating income ÷ $7,291M net sales — Mar 4, 2026 results release.
~$3.9B
long-term debt (verify)
Ballpark from prior snapshot — pull the latest 10-Q / 10-K for the exact total and maturity stack.
~4%
dividend yield
Rough yield only — confirm declared dividend and record dates on bbwinc.com / IR.
Financial Health
B
Strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 20 / 100
- long-term debt $3.9B (49% of capital)
- net profit margin ~8.9% FY2025 GAAP — ~$649M net income ÷ $7,291M sales
B — functional but not a standout on the balance sheet.
Total Return vs. Market
source: n/a — verify total return with your broker or index provider
What Just Happened
above prior guidance
Q4 FY2025 (ended Jan 31, 2026): net sales ~$2.72B (−2% vs. prior year); diluted EPS $1.99 ($2.05 adjusted).
FY2025: net sales $7,291M (−0.2%); operating income $1,126M; net income $649M; diluted EPS $3.11 ( $3.21 adjusted); adjusted operating income $1,156M. Repurchases: 15.1M shares / ~$400M. FY2026 outlook: sales down ~2.5%–4.5%; reported EPS $3.00–$3.25; adjusted EPS $2.40–$2.65; ~ $600M free cash flow; no buybacks assumed. Q1 FY2026: sales down ~4%–6% vs $1,424M (Q1 FY2025); reported EPS $0.84–$0.90, adjusted $0.24–$0.30 (vs $0.49 prior-year Q1). — Bath & Body Works results release, Mar 4, 2026.
$7.29B
FY2025 net sales
$3.11
FY2025 diluted EPS
$599M
Q4 op. income
the number that mattered
The bridge is FY2026 adjusted EPS $2.40–$2.65 vs $3.21 adjusted in FY2025 — the release flags bond redemption and litigation settlement items inside reported guidance, so read GAAP vs adjusted side by side.
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Mar 4, 2026: Company reported Q4 and full-year FY2025 results and issued FY2026 and Q1 FY2026 outlook.
-
Q4 net sales ~$2.72B (−2% vs. prior year); management said results were above the company’s prior guidance range.
-
FY2026 outlook assumes softer demand: net sales down ~2.5%–4.5% vs FY2025 and no share repurchases in the baseline.
-
Store footprint cited: 1,900+ U.S./Canada locations and 500+ international locations, plus e-commerce and Amazon.
-
Transformation and efficiency narrative (verify in IR decks): core categories, marketing, digital reach, and multi-year cost savings — cross-check dollar targets against the latest investor materials.
source: Bath & Body Works, Inc. press release (Mar 4, 2026) · bbwinc.com investor news
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What Could Go Wrong
The top risk is demand softness against FY2026 guidance (sales down ~2.5%–4.5%) while litigation and one-time items keep reported EPS noisy.
Med
Consumer pullback keeps hitting discretionary baskets
FY2025 net sales were flat to down slightly (−0.2% vs. prior year); FY2026 outlook calls for a steeper decline. Specialty retail has limited levers if traffic and basket weaken at once.
If the ~$7.29B base shrinks on the guided trajectory, operating leverage works in reverse unless cost actions offset.
Med
The balance sheet limits management's room to improvise
Long-term debt is material for a retailer (~$3.9B is a prior-snapshot ballpark — confirm on the latest filing). FY2025 GAAP net margin was ~8.9%; FY2026 adjusted EPS guide is below FY2025 adjusted EPS.
If earnings track the low end of guidance while leverage stays elevated, the “cheap multiple” story needs operating proof, not just sentiment.
Med
Securities litigation becomes a credibility overhang
the company faces securities class action allegations with a key investor deadline in march 2026. the direct cash impact is unclear from the current snapshot, but the reputational drag is real.
with the stock at $20.23 after trading as high as $42 over the last 52 weeks, BBWI does not need another reason for investors to demand a discount.
Between FY2026 guidance (softer sales, adjusted EPS below FY2025 adjusted), leverage to verify in filings, and litigation overhang, the equity case needs execution — not just a low headline P/E.
Source: institutional data · regulatory filings · risk analysis
Pay Attention To
Earnings
Next quarterly report (Q1 FY2026)
Company guided Q1 FY2026: sales down ~4%–6% vs $1,424M (Q1 FY2025); reported EPS $0.84–$0.90, adjusted $0.24–$0.30. Confirm date on the IR calendar (~late May / early Jun typical — verify).
Metric
Cost savings versus core demand
track the $250M savings plan, but read it next to sales. a cleaner cost structure helps, yet cost cuts cannot permanently replace missing customer demand.
Risk
March 2026 litigation deadline
the securities case may not change the operating model directly, but it can keep valuation compressed while the company is already trying to rebuild trust.
Trend
Holiday and gifting demand
management already said weakness continued into holiday. if seasonal demand does not show up, the bear case gets much easier to tell.
Analyst Rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts do not see a clear near-term catalyst yet.
risk profile
elevated
stability score 4 means it is safer than only 20% of stocks. this is not a defensive retailer.
chart momentum
below average
technical score 4 — the trend still says investors want proof before they pay a higher multiple.
earnings predictability
10 / 100
earnings predictability is low. in human-speak, expect more surprises than comfort.
Source: institutional data
Institutional Activity
Institutional ownership flows for BBWI are not verified on this page.
Source: institutional data
Price Targets
3-5 year target range
$20
Current price
Target midpoint · from current
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