At a glance
Bath & Body Works Inc. is worth $4.36B, about 7 times its fiscal 2026 earnings. Revenue fell 0.2% to $7.29B in fiscal 2026, with 8.9% kept as profit; over 5 years it has grown 2.5% a year. It pays a 3.7% dividend yield, and returned $5.06B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned −13.4% over the past year with dividends reinvested and −18.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 62.8% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The business in plain English
Bath & Body Works, formerly L Brands, sells its own brand of personal care and home fragrance products. The range includes fine fragrance mists, body creams and lotions, eau de parfum, body wash, hand soap, sanitizer and its well-known 3-wick candles. It buys its merchandise from about 90 vendors, mostly in the U.S. Its loyalty program has 40 million active members.
As of January 31, 2026, it sold through 1,927 company-run stores in the U.S. (1,814) and Canada (113), plus its own websites in both countries. Of those stores, 60% sit outside malls, and the company aims for 75% over time. Abroad, it uses an asset-light model: partners pay for and run 573 stores and 34 websites in more than 45 countries under franchise, license and wholesale deals. The company still sets the products, pricing and store design. It began selling on Amazon in the U.S. in February 2026.
In the fiscal year ended January 31, 2026, revenue was $7.29 billion, almost the same as the year before. Operating margin (profit from operations as a share of sales) was 15.4%. Sales are seasonal: the fourth quarter, which includes the holidays, usually brings about 40% of yearly sales and the most profit. The company's filings do not give a clean revenue split by product or region.
Price history
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BBWI -13.4% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2027 (ended Aug 1, 2026), revenue was $1.51B, down 2.3% from a year earlier, and net income was $118.0M (+84.4%).
- For fiscal 2026, revenue was $7.29B (-0.2% year over year; +2.5% a year from FY2021 to FY2026) with a 8.9% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +2.5% watch |
|---|---|
| Operating margin | 15.4% good |
| Free cash flow margin | 11.9% good |
| Return on assets (FY2026) | 12.8% good |
| Net cash (cash minus debt) | $-2.82B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $6.43B | $844.0M | $1.81B |
| FY2022 | $7.88B | $1.33B | $1.22B |
| FY2023 | $7.56B | $800.0M | $816.0M |
| FY2024 | $7.43B | $878.0M | $656.0M |
| FY2025 | $7.31B | $798.0M | $660.0M |
| FY2026 | $7.29B | $649.0M | $865.0M |
Valuation snapshot
| Market value | $4.36B |
|---|---|
| P/E ratio | 7 |
| Dividend yield | 3.7% |
Rank among 1514 US companies
Market value at each year end
Bath & Body Works’s market value went from $17.99B at the end of 2021 to $4.36B on Oct 28, 2026, down 76%; since the end of 2025 it is up 6%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.36B | +6.1% |
| 2025 | $4.11B | -51.0% |
| 2024 | $8.40B | -13.9% |
| 2023 | $9.75B | +1.3% |
| 2022 | $9.63B | -46.5% |
| 2021 | $17.99B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| BBWI price data to Oct 28, 2026 | +11.0% | -13.4% | -5.8% | -18.7% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +11.0% |
| 2025 | -46.5% |
| 2024 | -8.3% |
| 2023 | +4.7% |
| 2022 | -38.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 50.2% over that stretch · deepest drop along the way 62.8%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (24 read): 6 open-market purchases ($1.0M) and 1 sales ($14.23).
| Date | Insider | Type | Value |
|---|---|---|---|
| Nov 24, 2025 | James Kevin Symancyk Director | buy | $351K |
| Nov 21, 2025 | Steven E Voskuil Director | buy | $301K |
| Nov 24, 2025 | Sarah E Nash Director | buy | $156K |
| Nov 21, 2025 | Stephen D Steinour Director | buy | $100K |
| Nov 21, 2025 | Francis Hondal Director | buy | $50K |
Who owns it
Large shareholders (13G filings)
| FMR LLC | 10.4% | Mar 31, 2026 |
| BlackRock, Inc. | 8.8% | Mar 31, 2025 |
| Vanguard Portfolio Management | 7.53% | Mar 31, 2026 |
| Vanguard Capital Management | 5.32% | Mar 31, 2026 |
| Victory Capital Management, Inc. | 4.08% | Sep 30, 2025 |
| AQR Capital Management, LLC | 3.79% | Jun 30, 2026 |
| T. Rowe Price Investment Management, Inc. | 0.6% | Jun 30, 2025 |
ETFs with the most weight in BBWI
| ZIG Acquirers Fund | 3.31% |
| XRT SPDR S&P Retail ETF | 1.43% |
| VIOV Vanguard S&P Small-Cap 600 Value ETF | 0.6% |
| VIOG Vanguard S&P Small-Cap 600 Growth ETF | 0.6% |
| VIOO Vanguard S&P Small-Cap 600 ETF | 0.59% |
| SMOT VanEck Morningstar SMID Moat ETF | 0.58% |
| OASC OneAscent Small Cap Core ETF | 0.54% |
| TMSL T. Rowe Price Small-Mid Cap ETF | 0.5% |
What could go wrong
- The turnaround plan may not work. The Consumer First Formula is a multi-year plan under new CEO Daniel Heaf to win newer, younger shoppers. Revenue has slipped every year since reaching $7.88 billion, and success isn't guaranteed.
- One holiday season drives the year. The fourth quarter, which includes the holidays, usually brings about 40% of net sales and the most profit. A weak holiday season, from soft spending or bad weather, can drag down the whole year.
- Key sites are clustered in central Ohio. Many outside factories and the company's distribution centers sit close together in central Ohio. A storm, outage or local labor problem there could disrupt supply for the whole business.
- Heavy reliance on a few vendors. Its five largest vendors supplied about 40% of merchandise purchases in the year ended January 31, 2026, and the largest supplied about 12%. Losing one, or quality or delivery problems, could leave shelves short.
- Heavy debt and negative equity. As of August 1, 2026, debt totaled $3.61 billion against $794 million in cash, and liabilities on the books exceeded assets. A credit downgrade or tighter loan terms could raise borrowing costs.
- Reliance on store visits and malls. As of January 31, 2026, 60% of North American stores were outside malls. The rest are in malls, which the company calls vulnerable locations, and good new leases aren't guaranteed.
Recent events
- Executive or board change
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Executive or board change; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
- Executive or board change
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
Bath & Body Works pays a quarterly dividend, but the amount has not changed for several years. It rose from $0.30 a share in the fiscal year ended January 2021 to $0.80, and it was still $0.80 in the year ended January 31, 2026. That payout used about 26% of earnings and 19% of free cash flow (the cash left after running and investing in the business). The yield was 3.7% as of October 28, 2026. The company has spent far more on buybacks: $4.23 billion over the five fiscal years through January 2026, against $832 million in dividends. The share count fell about 24% between August 2021 and August 2026.
The share price has swung widely. In the 2022 bear market, the stock fell 62.8% from peak to trough and had not recovered as of October 28, 2026. The price history covers only about five years, so it does not show the 2008 or 2020 crashes. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Bath & Body Works make money?
It sells its own body care and home fragrance products, such as body cream, hand soap and 3-wick candles. As of January 31, 2026, it ran 1,927 stores in the U.S. and Canada plus its own websites, while partners ran 573 stores and 34 websites in more than 45 other countries. It began selling on Amazon in the U.S. in February 2026. Revenue was $7.29 billion for the fiscal year ended January 31, 2026, and the holiday-season fourth quarter typically brings in about 40% of sales.
Does Bath & Body Works raise its dividend every year?
No. The regular dividend was $0.80 per share in each of the four fiscal years through the one ended January 31, 2026, after rising from $0.30 and then $0.45 in the two years before. The yield was 3.7% as of October 28, 2026. In that latest fiscal year, the dividend used 25.7% of earnings and 19.3% of free cash flow (cash left after running and investing in the business). The company lists its ability to keep paying dividends among its risk factors.
Why has Bath & Body Works stock fallen so much?
The shares have dropped alongside shrinking sales and profits. Yearly revenue slipped four years in a row, from $7.88 billion to $7.29 billion in the fiscal year ended January 31, 2026, and net income fell 18.7% that year to $649 million. The company launched a turnaround plan, the Consumer First Formula, partway through that fiscal year. As of October 28, 2026, the share price was down 13.4% over one year and 65% over five years, including a 46.5% drop in calendar 2025.
Does Bath & Body Works have a lot of debt?
It carries far more debt than cash. As of August 1, 2026, total debt was about $3.61 billion against $794 million of cash and investments, leaving net debt of about $2.82 billion. Shareholders' equity was negative $1.06 billion, meaning recorded liabilities exceeded recorded assets. Buybacks shrink equity, and the company spent $4.23 billion on them over the five fiscal years ended January 31, 2026. Free cash flow, the cash left after running and investing in the business, was $865 million in the last of those years.
Is Bath & Body Works stock cheap?
On earnings, it looks inexpensive. As of October 28, 2026, the stock traded at about 7 times earnings (the P/E ratio), using earnings of $3.11 per share for the fiscal year ended January 31, 2026. A low P/E can signal doubts about future profits: earnings per share were $4.88 in the fiscal year ended in early 2022. In the quarter ended August 1, 2026, net income rose 84.4% to $118 million, but sales fell 2.3%. Net debt of about $2.82 billion at that date is another drawback.