bbwi-20231028

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 October 28, 2023


☐			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 24, 2023, the number of outstanding shares of the Registrant’s common stock was 225,940,592 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 October 28, 2023 (Unaudited), January 28, 2023 and October 29, 2022 (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			14

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995			15

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			16

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 2023” and “third quarter of 2022” refer to the thirteen-week periods ended October 28, 2023 and October 29, 2022, respectively. “Year-to-date 2023” and “year-to-date 2022” refer to the thirty-nine-week periods ended October 28, 2023 and October 29, 2022, 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
	2023		2022		2023		2022
Net Sales	$	1,562	$	1,604	$	4,517	$	4,672
Costs of Goods Sold, Buying and Occupancy	(880)		(926)		(2,618)		(2,666)
Gross Profit	682		678		1,899		2,006
General, Administrative and Store Operating Expenses	(461)		(476)		(1,310)		(1,282)
Operating Income	221		202		589		724
Interest Expense	(84)		(86)		(259)		(262)
Other Income	22		3		68		7
Income Before Income Taxes	159		119		398		469
Provision for Income Taxes	40		28		99		103
Net Income	$	119	$	91	$	299	$	366
Net Income per Basic Share	$	0.52	$	0.40	$	1.31	$	1.57
Net Income per Diluted Share	$	0.52	$	0.40	$	1.31	$	1.56

BATH & BODY WORKS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(Unaudited)


	Third Quarter				Year-to-Date
	2023		2022		2023		2022
Net Income	$	119	$	91	$	299	$	366
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation	(4)		(4)		(4)		(4)
Unrealized Gain on Cash Flow Hedges	3		3		2		3
Reclassification of Cash Flow Hedges to Earnings	(1)		—		(1)		—
Total Other Comprehensive Loss, Net of Tax	(2)		(1)		(3)		(1)
Total Comprehensive Income	$	117	$	90	$	296	$	365

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)


	October 28, 2023		January 28, 2023		October 29, 2022
	(Unaudited)				(Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents	$	412	$	1,232	$	295
Accounts Receivable, Net	197		226		242
Inventories	1,205		709		1,269
Other	145		99		142
Total Current Assets	1,959		2,266		1,948
Property and Equipment, Net	1,244		1,193		1,121
Operating Lease Assets	1,067		1,050		1,074
Goodwill	628		628		628
Trade Name	165		165		165
Deferred Income Taxes	35		37		41
Other Assets	145		155		156
Total Assets	$	5,243	$	5,494	$	5,133
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable	$	627	$	455	$	632
Accrued Expenses and Other	590		673		645

Current Operating Lease Liabilities	192		177		175
Income Taxes	—		74		—
Total Current Liabilities	1,409		1,379		1,452
Deferred Income Taxes	167		168		158
Long-term Debt	4,497		4,862		4,860
Long-term Operating Lease Liabilities	1,020		1,014		1,039
Other Long-term Liabilities	274		276		232
Shareholders’ Equity (Deficit):
Preferred Stock - $1.00 par value; 10 shares authorized; none issued	—		—		—
Common Stock - $0.50 par value; 1,000 shares authorized; 242, 244 and 243 shares issued; 227, 229 and 228 shares outstanding, respectively	120		122		122
Paid-in Capital	831		817		801
Accumulated Other Comprehensive Income	75		78		79
Retained Earnings (Accumulated Deficit)	(2,329)		(2,401)		(2,789)
Less: Treasury Stock, at Average Cost; 15, 15 and 15 shares, respectively	(822)		(822)		(822)
Total Shareholders’ Equity (Deficit)	(2,125)		(2,206)		(2,609)
Noncontrolling Interest	1		1		1
Total Equity (Deficit)	(2,124)		(2,205)		(2,608)
Total Liabilities and Equity (Deficit)	$	5,243	$	5,494	$	5,133

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)

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)

Third Quarter 2022


	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 30, 2022	228	$	122	$	791	$	80	$	(2,834)	$	(822)	$	1	$	(2,662)
Net Income	—	—		—		—		91		—		—		91
Other Comprehensive Loss	—	—		—		(1)		—		—		—		(1)
Total Comprehensive Income	—	—		—		(1)		91		—		—		90

Cash Dividends ($0.20 per share)	—	—		—		—		(46)		—		—		(46)



Share-based Compensation and Other	—	—		10		—		—		—		—		10
Balance, October 29, 2022	228	$	122	$	801	$	79	$	(2,789)	$	(822)	$	1	$	(2,608)

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 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, January 28, 2023	229	$	122	$	817	$	78	$	(2,401)	$	(822)	$	1	$	(2,205)
Net Income	—	—		—		—		299		—		—		299
Other Comprehensive Loss	—	—		—		(3)		—		—		—		(3)
Total Comprehensive Income	—	—		—		(3)		299		—		—		296
Cash Dividends ($0.60 per share)	—	—		—		—		(137)		—		—		(137)
Repurchases of Common Stock	(3)	—		—		—		—		(100)		—		(100)

Treasury Share Retirement	—	(2)		(8)		—		(90)		100		—		—
Share-based Compensation and Other	1	—		22		—		—		—		—		22
Balance, October 28, 2023	227	$	120	$	831	$	75	$	(2,329)	$	(822)	$	1	$	(2,124)

Year-to-Date 2022


	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, January 29, 2022	254	$	134	$	893	$	80	$	(1,803)	$	(822)	$	1	$	(1,517)
Net Income	—	—		—		—		366		—		—		366
Other Comprehensive Loss	—	—		—		(1)		—		—		—		(1)
Total Comprehensive Income	—	—		—		(1)		366		—		—		365
Cash Dividends ($0.60 per share)	—	—		—		—		(140)		—		—		(140)
Repurchases of Common Stock	(7)	—		—		—		—		(312)		—		(312)
Accelerated Share Repurchase Program	(20)	—		—		—		—		(1,000)		—		(1,000)
Treasury Share Retirement	—	(13)		(87)		—		(1,212)		1,312		—		—
Share-based Compensation and Other	1	1		(5)		—		—		—		—		(4)
Balance, October 29, 2022

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