CluenexBath & Body Works, Inc. BBWI
Bath & Body Works, Inc. scores average on business quality (5.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Bath & Body Works, Inc. does
Bath & Body Works operates specialty retail stores and digital channels, selling home fragrances, body care, and soaps directly to consumers.
- What it does best
Bath & Body Works dominates specialty fragrance retail through unmatched brand recognition, driving a gross margin of 43.0% that outpaces peer DKS at 32.1%. High repeat purchase rates create a resilient customer base that competitors struggle to duplicate.
- The main risk
Stagnant top-line trends threaten profitability if store traffic declines further. With revenue shrinking to $7.2 billion, any slip in consumer discretionary spending directly impacts cash generation.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 14.8%, placing the company in the 63rd sector percentile. FCF margin reaches 14.3% based on $1.0 billion of free cash flow on $7.2 billion in revenue, keeping cash conversion healthy.
Brand intangible assets lock in a loyal base of retail consumers, placing gross margins in the 58th sector percentile. Specialty scale creates high barriers, though flat demand limits pricing power.
Revenue fell 0.2% over the latest period, continuing a multi-year slide from $7.9 billion in 2022. Top-line expansion remains stalled as the core retail segment fights for mature market share.
Total debt sits at $3.9 billion against $953 million in cash, leaving a net debt burden of $2.9 billion. Free cash flow reached $1.0 billion, showing solid conversion despite flat revenues.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on BBWI
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Bath & Body Works, Inc. scores average on the Cluenex quality check (5.0 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health fair.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Nov 18, 2026.
See BBWI today
- Today's verdict on BBWI, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Bath & Body Works, Inc. (BBWI)”, https://cluenex.com/stocks/bbwi/, data as of Oct 10, 2026.