BBWICAUTIOUS

BBWI Return on Equity (ROE) Analysis

-50.7%

Higher than 23% of Consumer Cyclical sector peers

Updated 3638h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders’ equity; a negative -50.7% means Bath & Body Works is currently losing money relative to its equity base.

Sector Performance

23th percentile

BBWI

-50.7%

Sector Median

4.7%

Sector Avg

-40.2%

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Deep Analysis

This sits well below the sector median of 8.7% and places the company in the 18th percentile among Consumer Cyclical peers, indicating it is weaker than most competitors on this profitability gauge. The year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend can be inferred from those comparisons. Without a trend direction over the last eight quarters or any historical values beyond the most recent, the single data point of -50.7% highlights a severe current profitability problem but offers no information on whether the situation is improving or worsening. The combination of a deeply negative ROE with no available trend signals elevated investment risk, as the company is not generating a return on shareholders’ capital, though the lack of trend makes it impossible to assess momentum. This metric contradicts the overall BULLISH verdict, as a negative ROE is a fundamental red flag that would typically weigh against a bullish outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BBWI?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BBWI's Return on Equity (ROE) compare to its sector?

BBWI's Return on Equity (ROE) of -50.7% compares to a Consumer Cyclical sector median of 4.7%, placing it in the 23th percentile.

Who are BBWI's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: AMCR (4.4%), PVH (3.3%), APTV (1.8%), BWA (8.1%), JACK (8.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.