BBWIBULLISH

Gross Margin

42.6%

Higher than 58% of Consumer Cyclical sector peers

Updated 142h ago

Sector Performance

58th percentile

BBWI

42.6%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Bath & Body Works’ gross margin of 42.6% means that for every dollar of sales, the company keeps $0.426 after covering the direct costs of making its products.

That rate tops the Consumer Cyclical sector median of 36.3%, placing the stock in the 58th percentile among peers — a clear edge over the typical competitor. The year-over-year change is not available, but the quarter-over-quarter drop of -6.8% (from 45.7% last quarter to 42.6% now) signals a sharp recent erosion. While the level remains above the sector average, the speed of the decline implies a near-term risk that margins could slip further, potentially pressuring earnings. The overall BULLISH verdict is partially supported by the above-median gross margin, but the steep quarterly contraction creates a caution flag that investors should monitor.

Frequently Asked Questions

What does the Gross Margin tell investors about BBWI?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BBWI's Gross Margin compare to its sector?

BBWI's Gross Margin of 42.6% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 58th percentile.

Who are BBWI's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.