bbwi-20241102

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

FORM 10-Q

_________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 2, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-8344

_________________________________

BATH & BODY WORKS, INC.

(Exact name of registrant as specified in its charter)

_______________________________


Delaware		31-1029810
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
Three Limited Parkway
Columbus,	Ohio	43230
(Address of principal executive offices)		(Zip Code)
(614)	415-7000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Smaller reporting company

☐

Non-accelerated filer

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.): Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.50 Par Value	BBWI	The New York Stock Exchange

As of November 22, 2024, the number of outstanding shares of the Registrant’s common stock was 216,582,099 shares.

Table of Contents

BATH & BODY WORKS, INC. ®

TABLE OF CONTENTS


			Page No.
Part I. Financial Information

Item 1. Financial Statements *

Consolidated Statements of Income (Unaudited)			3

Consolidated Statements of Comprehensive Income (Unaudited)			3

Consolidated Balance Sheets as of November 2 , 2024 (Unaudited), February 3, 2024 and October 2 8 , 2023 (Unaudited)			4

Consolidated Statements of Total Equity (Deficit) (Unaudited)			5

Consolidated Statements of Cash Flows (Unaudited)			7

Notes to Consolidated Financial Statements (Unaudited)			8

Report of Independent Registered Public Accounting Firm			15

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995			16

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			17

Item 3. Quantitative and Qualitative Disclosures About Market Risk			27

Item 4. Controls and Procedures			28

Part II. Other Information			29

Item 1. Legal Proceedings			29

Item 1A. Risk Factors			29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			29

Item 3. Defaults Upon Senior Securities			29

Item 4. Mine Safety Disclosures			29

Item 5. Other Information			29

Item 6. Exhibits			30

Signature			31


*			The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “third quarter of 2024” and “third quarter of 2023” refer to the thirteen-week periods ended November 2, 2024 and October 28, 2023, respectively. “Year-to-date 2024” and “year-to-date 2023” refer to the thirty-nine-week periods ended November 2, 2024 and October 28, 2023, respectively.

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

BATH & BODY WORKS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)

(Unaudited)


	Third Quarter				Year-to-Date
	2024		2023		2024		2023
Net Sales	$	1,610	$	1,562	$	4,520	$	4,517
Costs of Goods Sold, Buying and Occupancy	(910)		(880)		(2,587)		(2,618)
Gross Profit	700		682		1,933		1,899
General, Administrative and Store Operating Expenses	(482)		(461)		(1,345)		(1,310)
Operating Income	218		221		588		589
Interest Expense	(77)		(84)		(236)		(259)
Other Income	4		22		65		68
Income Before Income Taxes	145		159		417		398
Provision for Income Taxes	39		40		72		99
Net Income	$	106	$	119	$	345	$	299
Net Income per Basic Share	$	0.49	$	0.52	$	1.56	$	1.31
Net Income per Diluted Share	$	0.49	$	0.52	$	1.55	$	1.31

BATH & BODY WORKS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)


	Third Quarter				Year-to-Date
	2024		2023		2024		2023
Net Income	$	106	$	119	$	345	$	299
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	(1)		(4)		(4)		(4)
Unrealized Gain on Cash Flow Hedges	—		3		2		2
Reclassification of Cash Flow Hedges to Earnings	—		(1)		—		(1)
Total Other Comprehensive Loss, Net of Tax	(1)		(2)		(2)		(3)
Total Comprehensive Income	$	105	$	117	$	343	$	296

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Table of Contents

BATH & BODY WORKS, INC.

CONSOLIDATED BALANCE SHEETS

(in millions, except par value amounts)


	November 2, 2024		February 3, 2024		October 28, 2023
	(Unaudited)				(Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	191	$	1,084	$	412
Accounts Receivable, Net	200		224		197
Inventories	1,178		710		1,205
Other	151		97		145
Total Current Assets	1,720		2,115		1,959
Property and Equipment, Net	1,158		1,220		1,244
Operating Lease Assets	1,029		1,056		1,067
Goodwill	628		628		628
Trade Name	165		165		165
Deferred Income Taxes	143		144		35
Other Assets	141		135		145
Total Assets	$	4,984	$	5,463	$	5,243
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	510	$	380	$	627
Accrued Expenses and Other	547		608		590
Current Debt	314		—		—
Current Operating Lease Liabilities	188		181		192
Income Taxes	16		120		—
Total Current Liabilities	1,575		1,289		1,409
Deferred Income Taxes	45		147		167
Long-term Debt	3,883		4,388		4,497
Long-term Operating Lease Liabilities	969		1,004		1,020
Other Long-term Liabilities	260		261		274
Shareholders’ Equity (Deficit):
Preferred Stock - $1.00 par value; 10 shares authorized; none issued	—		—		—
Common Stock - $0.50 par value; 1,000 shares authorized; 232, 240 and 242 shares issued; 217, 225 and 227 shares outstanding, respectively	115		120		120
Paid-in Capital	827		838		831
Accumulated Other Comprehensive Income	73		75		75
Retained Earnings (Accumulated Deficit)	(1,942)		(1,838)		(2,329)
Less: Treasury Stock, at Average Cost; 15, 15 and 15 shares, respectively	(822)		(822)		(822)
Total Shareholders’ Equity (Deficit)	(1,749)		(1,627)		(2,125)
Noncontrolling Interest	1		1		1
Total Equity (Deficit)	(1,748)		(1,626)		(2,124)
Total Liabilities and Equity (Deficit)	$	4,984	$	5,463	$	5,243

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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BATH & BODY WORKS, INC.

CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT)

(in millions, except per share amounts)

(Unaudited)

Third Quarter 2024


	Common Stock			Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings (Accumulated Deficit)		Treasury Stock, at Average Cost		Noncontrolling Interest		Total Equity (Deficit)
	Shares Outstanding	Par Value
Balance, August 3, 2024	220	$	117	$	830	$	74	$	(1,918)	$	(822)	$	1	$	(1,718)
Net Income	—	—		—		—		106		—		—		106
Other Comprehensive Loss	—	—		—		(1)		—		—		—		(1)
Total Comprehensive Income	—	—		—		(1)		106		—		—		105
Cash Dividends ($0.20 per share)	—	—		—		—		(44)		—		—		(44)
Repurchases of Common Stock	(3)	—		—		—		—		(99)		—		(99)
Treasury Share Retirement	—	(2)		(11)		—		(86)		99		—		—
Share-based Compensation and Other	—	—		8		—		—		—		—		8
Balance, November 2, 2024	217	$	115	$	827	$	73	$	(1,942)	$	(822)	$	1	$	(1,748)

Third Quarter 2023


	Common Stock			Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings (Accumulated Deficit)		Treasury Stock, at Average Cost		Noncontrolling Interest		Total Equity (Deficit)
	Shares Outstanding	Par Value
Balance, July 29, 2023	228	$	121	$	827	$	77	$	(2,358)	$	(822)	$	1	$	(2,154)
Net Income	—	—		—		—		119		—		—		119
Other Comprehensive Loss	—	—		—		(2)		—		—		—		(2)
Total Comprehensive Income	—	—		—		(2)		119		—		—		117
Cash Dividends ($0.20 per share)	—	—		—		—		(45)		—		—		(45)
Repurchases of Common Stock	(1)	—		—		—		—		(50)		—		(50)
Treasury Share Retirement	—	(1)		(4)		—		(45)		50		—		—
Share-based Compensation and Other	—	—		8		—		—		—		—		8
Balance, October 28, 2023	227	$	120	$	831	$	75	$	(2,329)	$	(822)	$	1	$	(2,124)

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Table of Contents

BATH & BODY WORKS, INC.

CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT)

(in millions, except per share amounts)

(Unaudited)

Year-to-Date 2024


	Common Stock			Paid-In Capital		Accumulated Other Comprehensive Income		Retained Earnings (Accumulated Deficit)		Treasury Stock, at Average Cost		Noncontrolling Interest		Total Equity (Deficit)
	Shares Outstanding	Par Value
Balance, February 3, 2024	225	$	120	$	838	$	75	$	(1,838)	$	(822)	$	1	$	(1,626)
Net Income	—	—		—		—		345		—		—		345
Other Comprehensive Loss	—

SEC Form 10-Q filed by Bath & Body Works Inc.