Free cash flow remains highly volatile, swinging from a 32.1% margin in 2024Q4 to -10.2% in 2024Q3, driven primarily by seasonal working capital fluctuations.
| 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 | 1.16B | 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 % | 208.95% | 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 | 727M | 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 | 188M | 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 | 23M | 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 | 65M | 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 | 153M | 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 | 4M | 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 | 88M | 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 | 131M | 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 | -230M | -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 | -249M | -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 | 3.44% | 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 | 19M | 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 | -746M | -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) | -265M | -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 | -164M | -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 | -265M | -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 | -14M | -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 | 184M | 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 | 909M | 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 % | 12.55% | 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 % | -48.85% | 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 | 4.50 | 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) | 1.25x | 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 |
Working capital volatility
As reported in financial statements, BBWI's operating cash flow to net income ratio exhibits extreme volatility, ranging from a low of -0.93 in 2024Q3 to a high of 2.18 in 2025Q4, indicating that reported net income is a poor proxy for actual cash generation capabilities.
The significant divergence between net income and operating cash flow suggests that non-cash items and working capital swings heavily influence the bottom line. Investors should monitor whether this volatility is a structural byproduct of the company's seasonal inventory build-up or a sign of deteriorating earnings quality.
Based on recent quarterly filings, BBWI's free cash flow margins have fluctuated wildly between -10.2% and 32.1%, reflecting a business model that is highly sensitive to the timing of holiday-driven inventory liquidation and the subsequent conversion of those sales into actual cash inflows.
The sharp contrast between the high FCF margins in the fourth quarter and the negative figures in the middle quarters suggests that the company's cash flow profile is entirely dependent on seasonal performance. This pattern implies that the business may face liquidity constraints during off-peak periods if inventory does not move as expected.
According to the provided cash flow data, working capital changes are the primary driver of cash flow variance, with swings as large as $424 million in 2024Q4, highlighting the company's reliance on aggressive inventory management to bridge the gap between production and seasonal consumer demand.
The recurring negative working capital changes in the second and third quarters suggest that the company is consistently tying up cash in inventory ahead of the holiday season. This strategy warrants further investigation into whether the company is over-producing, which could lead to future margin-eroding clearance events.
As indicated by the company's historical cash flow statements, BBWI has consistently prioritized share repurchases and dividends, with buybacks reaching as high as $152 million in 2024Q2, even during periods where free cash flow was negative, suggesting a commitment to returning capital to shareholders.
The decision to maintain buybacks and dividends despite negative free cash flow in certain quarters may indicate management's confidence in the business's long-term cash generation. However, this approach could be viewed as aggressive if the company's core operating cash flow does not stabilize in the coming fiscal years.
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.