Bath & Body Works, Inc.
BBWI Consumer Cyclical Specialty Retail
Bath & Body Works, Inc.’s revenue for fiscal 2026 (year ended January 2026) was $7.3 billion, roughly unchanged from fiscal 2025. In the quarter to July 2026, revenue fell 2.26%, EPS grew 93.3%, free cash flow grew 123.2% and total debt fell 7.05%, each against the same quarter a year earlier. Dividend growth for five consecutive years; insiders bought in the last twelve months.
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Bath & Body Works, Inc. (BBWI) Altman Z-score
Bath & Body Works, Inc.'s Altman Z-score for fiscal 2026 is 2.30, in the grey zone (1.81–2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 2.30 | (0.54) |
| FY2025 | 2.84 | 0.17 |
| FY2024 | 2.67 | 0.05 |
| FY2023 | 2.62 | (0.92) |
| FY2022 | 3.53 | 1.96 |
| FY2021 | 1.58 | 0.64 |
| FY2020 | 0.94 | (1.55) |
| FY2019 | 2.49 | (0.48) |
| FY2018 | 2.96 | (0.57) |
| FY2017 | 3.54 | (0.67) |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.08 | — | 0.10 | |
| Retained earnings / total assets | (0.28) | — | −0.40 | |
| EBIT / total assets | 0.22 | — | 0.73 | |
| Market value of equity / total liabilities | 0.71 | — | 0.43 | |
| Sales / total assets | 1.44 | — | 1.44 | |
| Altman Z-score | Grey zone | 2.30 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | 0.91 | ||
Z and Z″ put Bath & Body Works, Inc. in different zones: grey zone by Z, distress zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| MUSA Murphy USA Inc. compare | 6.9× |
| MNSO MINISO Group Holding Limited Unsponsored ADR compare | 3.0× |
| ASO Academy Sports and Outdoors, Inc. compare | 2.9× |
| SBH Sally Beauty Holdings, Inc. compare | 2.9× |
| ARHS Arhaus, Inc. compare | 2.5× |
| BBWI Bath & Body Works, Inc. | 2.3× |
| EYE National Vision Holdings, Inc. compare | 2.3× |
| SVV Savers Value Village, Inc. compare | 1.4× |
| RH RH compare | 1.4× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets