BBWI Stock Fair Value – BATH & BODY WORKS Reports Third Quarter Earnings Results for FY2024
November 30, 2023
🌥️Earnings Overview
For the third quarter of FY2024, BATH & BODY WORKS ($NYSE:BBWI) reported total revenue of USD 1562.0 million, which was a 2.6% decrease from the same period last year. Net income was USD 119.0 million, representing an increase of 30.8% compared to the same period in the previous financial year.
Market Price
The stock opened at $30.9 and closed at $30.1, which was a decrease of 7.4% from its previous closing price of 32.5. This decline in stock performance was a reflection of the company’s overall poor performance in the quarter. The company also experienced higher costs in the quarter due to higher advertising expenses and increased labor costs.
These costs were partially offset by cost savings from their supply chain and inventory management initiatives. Overall, BATH & BODY WORKS had a disappointing third quarter and will need to make adjustments in order to improve its performance in upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BBWI. More…
| Total Revenues | Net Income | Net Margin |
| 7.41k | 733 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BBWI. More…
| Operations | Investing | Financing |
| 1.1k | -315 | -672 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BBWI. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.24k | 7.37k | -9.48 |
Key Ratios Snapshot
Some of the financial key ratios for BBWI are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -14.2% | 3.9% | 17.8% |
| FCF Margin | ROE | ROA |
| 10.5% | -38.3% | 15.7% |
Analysis – BBWI Stock Fair Value
At GoodWhale, we performed an extensive analysis of BATH & BODY WORKS’ finances to determine its fair market value. Our proprietary Valuation Line calculated the fair value of a BATH & BODY WORKS share to be around $52.2. However, at the moment, BATH & BODY WORKS stock is traded at $30.1, which implies a 42.3% discount from its fair market value. This presents investors with a great opportunity to purchase BATH & BODY WORKS stock and profit from the company’s potential growth. More…
Peers
The competition among Bath & Body Works Inc, Ulta Beauty Inc, Five Below Inc, and O’Reilly Automotive Inc is fierce. All four companies are vying for the top spot in their respective industries, and each has its own unique strengths and weaknesses. Bath & Body Works Inc is the largest retailer of beauty products in the United States, while Ulta Beauty Inc is the largest beauty retailer in the world. Five Below Inc is a discount retailer that offers a wide variety of products, including beauty products, at extremely low prices. O’Reilly Automotive Inc is a leading retailer of automotive parts and accessories.
– Ulta Beauty Inc ($NASDAQ:ULTA)
Ulta Beauty Inc is a publicly traded company with a market capitalization of over 19 billion dollars as of early 2022. The company operates in the cosmetics, fragrance, and skincare industry and has over 1200 stores across the United States. Ulta Beauty Inc has a strong focus on customer service and offering a wide variety of products, which has resulted in the company having a very loyal customer base. Ulta’s return on equity (ROE) is very high at 52.96%, meaning that the company is very efficient in using its shareholders’ equity to generate profits.
Ulta is a go-to destination for beauty lovers of all ages and budgets. The company offers a wide variety of cosmetics, fragrance, and skincare products from both high-end and drugstore brands. Ulta is also known for its exceptional customer service, with knowledgeable and friendly employees who are always happy to help customers find the perfect product. The company’s focus on offering a great customer experience has resulted in a very loyal customer base, which has helped Ulta to become one of the leading beauty retailers in the United States.
– Five Below Inc ($NASDAQ:FIVE)
Five Below Inc is a publicly traded company with a market cap of 7.28B as of 2022. The company operates in the discount retail sector and specializes in selling products that are priced at $5 or less. The company has a strong focus on appealing to teenagers and young adults. The company’s return on equity (ROE) is 18.02%.
– O’Reilly Automotive Inc ($NASDAQ:ORLY)
O’Reilly Automotive Inc is a publicly traded company with a market capitalization of $46.28 billion as of March 2022. The company operates in the automotive aftermarket retailing industry and is headquartered in Springfield, Missouri, United States. O’Reilly Automotive Inc is engaged in the retailing of aftermarket automotive parts, tools, and supplies through its chain of stores in the United States. The company was founded in 1957 and its common stock is traded on the Nasdaq Global Select Market under the ticker symbol ORLY.
Summary
Bath & Body Works reported their earnings results for the third quarter of FY2024, with total revenue of USD 1562.0 million, a decrease of 2.6% year over year, and net income of USD 119.0 million, an increase of 30.8% year over year. Despite the increase in net income, the stock price moved down the same day, indicating investors may be concerned about the company’s declining revenue. Investors should analyze the company’s strategic decisions and profitability trends before deciding whether to invest in Bath & Body Works. Given their focus on consumer products, paying attention to consumer trends and understanding how they will affect the company’s performance is also important.
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