Free cash flow generation is extremely seasonal and volatile, with Q2 2026 showing a 1.5% FCF margin compared to a 29.9% margin in Q4 2025, highlighting a business model heavily dependent on holiday-period cash generation to fund year-round capital returns.
Bath & Body Works, Inc. (BBWI) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Cash from Operations | 1.27B | 1.1B | 886M | 954M | 1.14B | 1.49B | 2.04B | 1.24B | 1.38B | 1.41B | 1.89B | 1.87B | 1.79B | 1.25B | 1.35B | 1.27B | 1.28B | 1.17B | 954M | 765M | 600M | 1.08B | 933M | 1.06B | 795M | 969M | 769.1M | 586.33M | 571M | 590M | 712.1M |
| Operating CF Margin % | - | 15.11% | 12.13% | 12.84% | 15.13% | 18.93% | 31.69% | 22.87% | 10.4% | 11.13% | 15.03% | 15.38% | 15.59% | 11.58% | 12.92% | 12.22% | 13.36% | 13.6% | 10.55% | 7.55% | 5.62% | 11.15% | 9.92% | 11.89% | 9.41% | 11.5% | 8.47% | 6% | 6.1% | 6.42% | 8.24% |
| Operating CF Growth % | 469.87% | 24.38% | -7.13% | -16.61% | -23.32% | -26.83% | 64.97% | -10.24% | -2.06% | -25.61% | 1.12% | 4.65% | 43.11% | -7.62% | 6.71% | -1.4% | 9.37% | 23.06% | 24.71% | 27.5% | -44.5% | 15.86% | -12.15% | 33.58% | -17.96% | 25.99% | 31.17% | 2.68% | -3.22% | -17.15% | 99.64% |
| Net Income | 781M | 649M | 798M | 878M | 800M | 1.33B | 844M | -366M | 644M | 983M | 1.16B | 1.25B | 1.04B | 903M | 753M | 850M | 805M | 448M | 220M | 718M | 676M | 683M | 705M | 717M | 502M | 519M | 427.9M | 460.76M | 2.05B | 217.4M | 434.2M |
| Depreciation & Amortization | 183M | 254M | 282M | 269M | 221M | 363M | 521M | 588M | 590M | 571M | 518M | 457M | 438M | 407M | 389M | 391M | 394M | 393M | 343M | 352M | 316M | 299M | 333M | 283M | 310M | 277M | 271.15M | 272.44M | 286M | 313.3M | 289.6M |
| Stock-Based Compensation | 17M | 0 | 40M | 43M | 38M | 46M | 50M | 87M | 97M | 102M | 96M | 97M | 90M | 85M | 73M | 51M | 64M | 40M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 2M | 63M | -112M | -128M | 17M | 45M | 33M | -29M | -52M | -108M | 110M | 11M | 50M | 18M | 11M | -37M | -24M | 49M | 46M | -5M | -43M | -76M | 47M | 23M | 59M | 76M | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 69M | 23M | -29M | -26M | 0 | 195M | 214M | 1.05B | 155M | -22M | -168M | -188M | -83M | -75M | -47M | -32M | -189M | -42M | 53M | -360M | -26M | 8M | -46M | -175M | 39M | -189M | 52.95M | 39.21M | -1.69B | 142.7M | -84.4M |
| Working Capital Changes | 221M | 113M | -93M | -82M | 68M | -490M | 377M | -99M | -57M | -120M | 176M | 239M | 249M | -90M | 172M | 43M | 234M | 286M | 223M | 60M | -323M | 167M | -106M | 214M | -115M | 286M | 17.1M | -186.09M | -78.8M | -83.4M | 72.7M |
| Change in Receivables | -24M | 25M | 18M | 2M | 11M | -64M | 38M | 31M | -63M | -13M | -44M | -10M | -9M | -43M | 5M | -152M | -11M | 22M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 93M | 37M | -26M | -2M | 0 | -177M | 3M | -40M | -40M | -137M | 30M | -92M | 121M | -168M | -7M | -27M | 9M | 156M | 45M | 337M | -545M | 10M | -194M | 23M | -144M | 82M | -106.23M | -54.27M | -153.7M | -5.4M | -48.4M |
| Change in Payables | 145M | 111M | -50M | -109M | 44M | -86M | 166M | -93M | 29M | 50M | -27M | 49M | 90M | 1M | -43M | 119M | 185M | 17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -221M | -227M | -162M | -286M | -328M | -259M | -219M | -480M | -609M | -698M | -833M | -443M | -699M | -655M | -531M | -226M | -106M | -162M | -240M | 30M | -1.09B | -506M | -227M | 35M | -80M | -68M | -468.66M | 168.83M | -185M | -61.4M | -450.5M |
| Capital Expenditures | -242M | -237M | -226M | -298M | -328M | -270M | -228M | -458M | -629M | -707M | -990M | -727M | -715M | -691M | -588M | -426M | -274M | -202M | -479M | -749M | -548M | -480M | -431M | -293M | -306M | -337M | -446.18M | -375.4M | -347.4M | -404.6M | -409.3M |
| CapEx % of Revenue | 3.36% | 3.25% | 3.09% | 4.01% | 4.34% | 3.43% | 3.54% | 8.47% | 4.75% | 5.6% | 7.87% | 5.98% | 6.24% | 6.41% | 5.62% | 4.11% | 2.85% | 2.34% | 5.3% | 7.39% | 5.14% | 4.95% | 4.58% | 3.28% | 3.62% | 4% | 4.91% | 3.84% | 3.71% | 4.4% | 4.73% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -33M | 85M | 0 | 0 | 0 | 0 | 32M | 9M | 159M | 547M | -580M | 0 | -27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 21M | 10M | 63M | 12M | 0 | 11M | 9M | -22M | 20M | 19M | 72M | 209M | 16M | 36M | 57M | 101M | 87M | 31M | 80M | 232M | 35M | -26M | 25M | 324M | 208M | 269M | -22.48M | 544.24M | 162.4M | 343.2M | -41.2M |
| Cash from Financing | -621M | -599M | -1.13B | -815M | -1.56B | -3.19B | 610M | -666M | -872M | -1.13B | -1.67B | -558M | -919M | 154M | -982M | -1.24B | -1.86B | -387M | -562M | -279M | -215M | -528M | -2.67B | -230M | 52M | -90M | -554.15M | -808.21M | -262.1M | -95M | -1.59B |
| Debt Issued (Net) | -303M | -14M | -539M | -462M | -9M | -1.73B | 703M | -308M | 11M | 7M | -21M | 995M | -213M | 495M | 928M | 981M | -255M | -202M | -15M | 1.24B | -7M | 30M | 998M | 100M | 150M | 0 | -250M | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -147M | -401M | -401M | -148M | -1.31B | -2.02B | 8M | 1M | -197M | -446M | -435M | -571M | -87M | -60M | -629M | -1.19B | -207M | 0 | -379M | -1.32B | -16M | -316M | -2.95B | -122M | 52M | 39M | -176M | -752M | -96.5M | 35.5M | -1.49B |
| Dividends Paid | -162M | -167M | -177M | -182M | -186M | -120M | -83M | -332M | -666M | -686M | -1.27B | -1.17B | -691M | -349M | -1.45B | -1.14B | -1.49B | -193M | -201M | -227M | -238M | -242M | -724M | -208M | -150M | -129M | -127.55M | -130.45M | -124.2M | -130.5M | -108.3M |
| Share Repurchases | -147M | -401M | -401M | -148M | -1.31B | -1.96B | 0 | 0 | -198M | -446M | -435M | -483M | -87M | -60M | -629M | -1.19B | -207M | 0 | -379M | -1.4B | -193M | -380M | -3.12B | -150M | 0 | -8M | -231M | -815.25M | -163.9M | 0 | -1.61B |
| Other Financing | -9M | -17M | -15M | -23M | -61M | 683M | -18M | -27M | -20M | -2M | 59M | 189M | 72M | 68M | 168M | 116M | 93M | 8M | 33M | 28M | 46M | 0 | 0 | 0 | 0 | 0 | -606K | 73.8M | -41.4M | 0 | 0 |
| Net Change in Cash | 430M | 279M | -410M | -148M | -747M | -1.95B | 2.43B | 86M | -102M | -419M | -614M | 867M | 162M | 746M | -162M | -195M | -674M | 631M | 155M | 518M | -708M | 47M | -1.97B | 867M | 767M | 811M | -253.72M | -53.05M | 123.9M | 433.6M | -1.33B |
| Free Cash Flow | 1.03B | 865M | 660M | 656M | 816M | 1.22B | 1.81B | 778M | 748M | 699M | 900M | 1.14B | 1.07B | 557M | 763M | 840M | 1.01B | 972M | 475M | 16M | 52M | 601M | 502M | 769M | 489M | 632M | 322.92M | 210.92M | 223.6M | 185.4M | 302.8M |
| FCF Margin % | 14.3% | 11.86% | 9.03% | 8.83% | 10.79% | 15.5% | 28.15% | 14.39% | 5.65% | 5.53% | 7.16% | 9.4% | 9.35% | 5.17% | 7.3% | 8.11% | 10.51% | 11.26% | 5.25% | 0.16% | 0.49% | 6.2% | 5.34% | 8.61% | 5.79% | 7.5% | 3.56% | 2.16% | 2.39% | 2.02% | 3.5% |
| FCF Growth % | -44.03% | 31.06% | 0.61% | -19.61% | -33.22% | -32.52% | 132.78% | 4.01% | 7.01% | -22.33% | -21.19% | 6.63% | 92.28% | -27% | -9.17% | -16.83% | 3.91% | 104.63% | 2868.75% | -69.23% | -91.35% | 19.72% | -34.72% | 57.26% | -22.63% | 95.71% | 53.1% | -5.67% | 20.6% | -38.77% | 1810.73% |
| FCF per Share | 5.10 | 4.09 | 2.99 | 2.86 | 3.50 | 4.48 | 6.44 | 2.82 | 2.71 | 2.43 | 3.09 | 3.85 | 3.59 | 1.88 | 2.57 | 2.67 | 3.03 | 2.97 | 1.41 | 0.04 | 0.13 | 1.46 | 1.05 | 1.46 | 0.94 | 1.41 | 0.69 | 0.43 | 0.45 | 0.33 | 0.54 |
| FCF Conversion (FCF/Net Income) | 1.32x | 1.70x | 1.11x | 1.09x | 1.43x | 1.12x | 2.42x | -3.38x | 2.14x | 1.43x | 1.63x | 1.49x | 1.71x | 1.38x | 1.79x | 1.49x | 1.60x | 2.62x | 4.34x | 1.07x | 0.89x | 1.62x | 1.32x | 1.48x | 1.58x | 1.87x | 1.80x | 1.27x | 0.28x | 2.71x | 1.64x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying BBWI stock.
Bath & Body Works, Inc. (BBWI) generated $1.10B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Bath & Body Works, Inc. (BBWI) generated $865.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Bath & Body Works, Inc. (BBWI) spent $237.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Bath & Body Works, Inc. (BBWI) returned $167.0M to shareholders via cash dividends and spent $401.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Persistent top-line pressure despite margin gains
Metrics are mathematically derived from official filings.
Earnings Quality Volatile, Cash Conversion Inconsistent
The relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from -0.67 in Q2 2025 to 2.18 in Q4 2025, indicating significant non-cash items and working capital swings distort reported profitability.
The extreme volatility in the OCF/NI ratio suggests that net income is a poor proxy for underlying cash generation, with large non-cash charges and working capital movements creating significant quarterly noise. For instance, the Q4 2025 OCF of $877M against net income of $403M implies substantial non-cash add-backs or favorable working capital timing, while the Q2 2025 negative OCF despite positive net income points to severe cash consumption. This inconsistency warrants caution when using reported earnings to assess the company's core cash-generating ability.
FCF Trajectory Highly Seasonal, Masking Underlying Weakness
Free cash flow exhibits extreme seasonality, with Q4 quarters generating over $800M in FCF while adjacent quarters often burn cash, resulting in a volatile annual FCF margin that masks the underlying demand pressure noted by management.
The FCF trajectory is dominated by the fourth-quarter holiday season, which generated $814M and $895M in FCF in the last two years, respectively. However, the first three quarters of the fiscal year frequently show negative or minimal FCF, with Q2 2025 and Q3 2024 both posting significant cash burn. This pattern indicates the business model is heavily reliant on a single seasonal window for cash generation, making the annual FCF margin of ~10% a misleading indicator of quarterly health and exposing the company to execution risk during the critical holiday period.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes are the primary driver of operating cash flow volatility, with swings from a $424M source in Q4 2024 to a $282M use in Q3 2024, suggesting aggressive inventory and receivables management tied to promotional cycles.
The massive working capital source in Q4 quarters ($341M in 2025Q4, $424M in 2024Q4) appears to be driven by the liquidation of holiday inventory and collection of receivables, which is a necessary but unsustainable cash inflow. Conversely, the significant working capital uses in Q2 and Q3 quarters (e.g., -$178M in 2025Q2) likely reflect inventory build-up ahead of seasonal launches and promotional events. This pattern suggests the company's cash flow is structurally dependent on the successful execution of its seasonal inventory cycle, and any misstep in demand forecasting could lead to severe cash flow deterioration.
Capital Returns Prioritized Despite Cash Flow Instability
Management has consistently returned capital via dividends and share repurchases, with over $400M in dividends paid annually and significant buybacks in most quarters, even during periods of negative free cash flow.
The commitment to capital returns is evident in the steady quarterly dividend payments of ~$40M and the substantial share repurchases, which totaled over $300M in Q1 2025 alone. This aggressive return policy, funded partly by debt or cash reserves during cash-burning quarters, suggests management is prioritizing shareholder returns over strengthening the balance sheet or investing in growth. Investors should monitor whether this pace is sustainable given the volatile FCF trajectory and the CEO's commentary on pressured underlying business trends.
Cash Flow Statement Obscures Promotional and Loyalty Liabilities
The cash flow statement does not fully capture the potential liabilities from aggressive promotional activity (e.g., 'Buy 3, Get 3') and the growing loyalty program, which could represent deferred revenue obligations impacting future cash flows.
While operating cash flow includes the cash effects of promotions, it does not disclose the long-term brand equity erosion or the potential future cost of fulfilling loyalty points, which are noted as a deferred revenue obligation. Furthermore, the treatment of store impairment charges and accelerated depreciation related to mall exits, which are non-cash add-backs, may overstate the quality of operating cash flow by masking the cash costs of the real estate transition. These factors suggest the reported OCF may not fully reflect the economic reality of maintaining the company's promotional and loyalty-driven sales model.