Bath & Body Works, Inc. (BBWI): history, ownership, mission, how it works & makes money

A Brief History of Bath & Body Works, Inc.

Bath & Body Works, Inc. has undergone significant transformations and developments as of 2024. Established in 1990, the company has grown to become a leading specialty retailer of personal care, fragrances, and home products.

Financial Performance Overview

As of the second quarter of 2024, Bath & Body Works reported total net sales of $1.526 billion, a decrease of 2.1% compared to $1.559 billion in the second quarter of 2023. The decline in sales was primarily attributed to a 9.7% drop in direct sales, amounting to $297 million, and a slight decrease in store sales of 0.3% to $1.140 billion. However, international sales grew by 2.2% to $89 million.

Gross Profit and Expenses

In the second quarter of 2024, Bath & Body Works reported a gross profit of $626 million, representing a gross profit rate of 41.0%, up from 39.9% in the same quarter of 2023. This improvement was primarily due to a 130 basis point increase in the merchandise margin rate and lower buying and occupancy expenses.

Debt and Interest Expenses

As of August 3, 2024, Bath & Body Works had total debt of $4.194 billion. The average daily borrowings for the year-to-date 2024 were $4.322 billion with an average borrowing rate of 7.3%. Interest expenses for the year-to-date 2024 were reported at $159 million, down from $175 million in the same period of 2023.

Shareholder Returns

In 2024, Bath & Body Works declared a dividend of $0.20 per share for both the first and second quarters, totaling $90 million for the first half of the year. The company has also been active in stock repurchases, having repurchased 4.921 million shares for $210 million under the January 2024 share repurchase program.

Inventory and Capital Expenditures

As of August 3, 2024, Bath & Body Works reported total inventories of $863 million, up from $818 million in July 2023. The company has allocated $101 million for capital expenditures in 2024, focusing on new store openings and remodels.

A Who Owns Bath & Body Works, Inc. (BBWI)

Ownership Structure

As of 2024, Bath & Body Works, Inc. (BBWI) operates as a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol "BBWI". The ownership structure is characterized by a mix of institutional and retail investors.

Institutional Ownership

Institutional investors hold a substantial portion of Bath & Body Works' shares. Notable institutional shareholders include:

• The Vanguard Group, Inc. - approximately 11.7% ownership
• BlackRock, Inc. - approximately 11.5% ownership
• State Street Corporation - approximately 7.1% ownership

Major Shareholders

In addition to institutional investors, other significant shareholders include company executives and board members. As of early 2024, the ownership stakes of key executives include:

• Andrew Meslow (CEO) - 1.5% ownership
• Jill Scalamandre (President) - 0.5% ownership

Shareholder Dynamics

As of August 3, 2024, the total shares outstanding stood at approximately 220 million. The company also executed share repurchase programs, reducing the total shares available in the market. In 2024, the company repurchased approximately 5.763 million shares, reflecting a commitment to returning value to shareholders.

Stock Performance

The stock performance of Bath & Body Works has seen fluctuations in recent quarters. The closing price as of August 3, 2024, was $42.72, showing a decrease compared to the previous year. The company reported a market capitalization of approximately $9.4 billion at this time.

Financial Overview

For the second quarter of 2024, Bath & Body Works reported net sales of $1.526 billion, a decline of 2.1% from the previous year. The key financial metrics are illustrated below:

Debt and Financial Obligations

As of August 3, 2024, Bath & Body Works has a total debt of approximately $4.194 billion. The company has been actively managing its debt through repurchases of senior notes, reducing financial obligations significantly over the past year.

Conclusion on Ownership

The ownership landscape of Bath & Body Works, Inc. is primarily dominated by institutional investors, with significant holdings by its executives. The company continues to focus on shareholder value through strategic repurchases and maintaining a robust financial position.

Bath & Body Works, Inc. (BBWI) Mission Statement

Company Overview

The mission of Bath & Body Works, Inc. (BBWI) centers on providing high-quality personal care products that create memorable experiences for its customers. The company emphasizes innovation, quality, and customer satisfaction in all its product offerings.

Financial Overview

As of August 3, 2024, Bath & Body Works reported the following key financial metrics:

Sales Performance

In the second quarter of 2024, Bath & Body Works experienced a decrease in net sales compared to the previous year, with a total of:

Operational Efficiency

For the year-to-date 2024, Bath & Body Works achieved a gross profit increase, resulting from several operational efficiencies:

Debt and Liquidity

As of August 3, 2024, the company's total long-term debt was:

Shareholder Returns

Bath & Body Works has a consistent dividend policy, with dividends paid as follows:

Market Position and Strategic Goals

Bath & Body Works aims to enhance customer experiences through innovation and a focus on high-quality products. The company continues to explore new market opportunities and enhance its operational efficiencies to drive sustainable growth.

How Bath & Body Works, Inc. (BBWI) Works

Financial Overview

As of the second quarter of 2024, Bath & Body Works, Inc. reported consolidated Net Sales of $1.526 billion, a decrease of 2.1% compared to $1.559 billion in the second quarter of 2023. The decline was primarily driven by a $32 million decrease in North American Direct sales and a $4 million decrease in Stores sales, partially offset by a $3 million increase in International sales.

Gross Profit and Operating Income

For the second quarter of 2024, Gross Profit was $626 million, with a Gross Profit rate of 41.0%, up from 39.9% in the prior year. The increase was attributed to a 130 basis point improvement in the merchandise margin rate, driven by cost-saving initiatives and a decline in average unit costs. Operating Income for the same period was $183 million, down 3% from $188 million in Q2 2023.

Expenses

General, Administrative and Store Operating Expenses increased to $443 million in the second quarter of 2024, a 2.1% increase from $434 million in the previous year. Selling Expenses accounted for $261 million or 17.1% of Net Sales, while Home Office and Marketing Expenses were $182 million or 11.9% of Net Sales.

Net Income and Earnings Per Share

Net Income for the second quarter of 2024 was $151 million, leading to Net Income Per Diluted Share of $0.68, compared to $0.43 in Q2 2023. Adjusted Net Income Per Diluted Share was $0.37, down from $0.40 in the same quarter last year.

Debt and Interest Expense

Total Debt as of August 3, 2024, was $4.194 billion, with a Current Debt of $313 million and Total Long-term Debt, Net of Current Portion at $3.881 billion. Interest Expense for the second quarter of 2024 was $77 million, a decrease from $86 million in Q2 2023.

Cash Flow and Capital Expenditures

Year-to-date 2024, net cash provided by operating activities was $30 million, compared to $77 million in the same period of 2023. Capital expenditures for year-to-date 2024 were $101 million, primarily focused on new store openings and IT projects. The company is planning total capital expenditures of $250 million for the year.

Store Data

As of August 3, 2024, Bath & Body Works operated a total of 1,872 stores in North America, with 1,761 in the United States and 111 in Canada. Internationally, there are 497 stores operating, including 31 travel retail locations.

Inventory Management

As of August 3, 2024, total inventories stood at $863 million, up from $710 million on February 3, 2024. This includes $669 million in finished goods merchandise and $194 million in raw materials and merchandise components.

How Bath & Body Works, Inc. (BBWI) Makes Money

Revenue Streams

Bath & Body Works, Inc. generates revenue primarily through the sale of personal care products, home fragrances, and accessories. The company operates through several channels:

• Stores in the U.S. and Canada
• Direct online sales
• International sales through franchised and partner-operated stores

Sales Performance

For the second quarter of 2024, Bath & Body Works reported the following net sales:

Year-to-date 2024 total net sales were reported at $2.910 billion, a decrease of 1.5% compared to $2.955 billion in year-to-date 2023.

Gross Profit Analysis

For the second quarter of 2024, Bath & Body Works achieved a gross profit of $626 million, up from $622 million in Q2 2023. The gross profit margin improved to 41.0% from 39.9% year-over-year. Key factors included:

• A 130 basis point increase in merchandise margin rate
• Lower buying and occupancy expenses

Year-to-date gross profit stood at $1.233 billion, reflecting a gross profit margin rate of 42.4%, compared to 41.2% in the previous year.

Operating Expenses

General, administrative, and store operating expenses for Q2 2024 were $443 million, compared to $434 million in Q2 2023. The breakdown is as follows:

For year-to-date 2024, total operating expenses reached $863 million, which is 29.6% of net sales.

Net Income and Earnings Per Share

Bath & Body Works reported a net income of $152 million for Q2 2024, compared to $99 million in Q2 2023. The net income per diluted share for Q2 2024 was $0.68, up from $0.43 in Q2 2023. Year-to-date net income also increased to $239 million from $180 million year-over-year.

Debt Management

As of August 3, 2024, Bath & Body Works had total debt of $4.194 billion, with a significant portion linked to fixed interest rate notes. The company has actively managed its debt, repurchasing $200 million principal amount of senior notes during the year.

Cash Flow and Liquidity

For year-to-date 2024, Bath & Body Works reported net cash provided by operating activities of $30 million, down from $77 million in the previous year. The company maintained cash and cash equivalents of $514 million at the end of the quarter.

Strategic Initiatives

The company is focusing on cost optimization, with a target of $280 million in annual savings. This includes $150 million in reductions achieved in fiscal 2023 and an expectation of an additional $130 million in 2024.