Fundamentals Hub
▼ FY 2025 Summary Analysis
Annual report ending Jan 31, 2026Overview and Growth
Bath & Body Works, Inc. generated $7.29B of revenue in fiscal 2025, with net income of $649.00M and an operating cash inflow of $1.10B. At $7.29B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 0.2% below fiscal 2024 revenue of $7.31B, marking a top-line contraction. Diluted earnings per share were $3.11, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 13.9% decrease from fiscal 2024 diluted EPS of $3.61. The revenue-to-assets relationship was 1.44x, showing the sales generated relative to the resources carried on the balance sheet.Profitability
The first profit layer was $3.19B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross profit represented 43.7% of revenue, showing how much of the top line remained after direct costs. Operating income was $1.13B, the earnings remaining from reported operations after the company’s recognized operating cost structure. Operating margin measured 15.4%, showing the portion of revenue preserved after the full set of operating costs. Net income came to $649.00M, completing the progression from revenue through gross and operating profitability to the final reported result. Net margin was 8.9%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $882.00M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 12.1%, relating income before taxes directly to revenue. The reported income-tax provision was $233.00M, the amount recognized between pretax income and the final net-income result. The effective relationship between income tax and positive pretax income was 26.4%, without assuming a statutory-rate comparison.Liquidity and Capital Structure
Total assets were $5.07B, supported by $6.35B of liabilities and -$1.28B of shareholder equity. The company reported negative equity of -$1.28B, a capital deficit that reduces its ability to absorb losses through book equity. At period end, current assets of $2.02B compared with current liabilities of $1.59B, defining the company’s short-term resource position. Current assets covered current liabilities by 1.27x, leaving a positive buffer for near-term obligations. Reported cash and equivalents were $953.00M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 59.9% of current liabilities, showing how much near-term coverage came from cash alone. Borrowings totaled $3.89B, adding a fixed financing obligation alongside the company’s equity capital. Relative to total assets, debt measured 76.8%, showing how much of the asset base was matched by borrowing. Liabilities represented 125.2% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 18.8%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 4.0% higher than fiscal 2024 assets of $4.87B, measuring the company’s own balance-sheet change.Cash Flow and Earnings Quality
The company reported $1.10B of operating cash flow, a cash inflow that shows the cash generated by operations. The operating-cash-flow-to-net-income relationship was 1.7x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $237.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 21.5% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $865.00M, leaving a positive amount after capital expenditures. Free cash flow represented 11.9% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 17.1%, showing the cash productivity of the company’s assets.
Based on the annual report for the fiscal year ending Jan 31, 2026.
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