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Table of Contents

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 May 3, 2025
OR

☐ 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 May 23, 2025, the number of outstanding shares of the Registrant’s common stock was 211,611,794 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 May 3, 2025 (Unaudited), February 1, 2025 and May 4, 2024 (Unaudited)
4

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

Consolidated Statements of Cash Flows (Unaudited)
6

Notes to Consolidated Financial Statements (Unaudited)
7

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
15

Item 3. Quantitative and Qualitative Disclosures About Market Risk
23

Item 4. Controls and Procedures
24

Part II. Other Information
25

Item 1. Legal Proceedings
25

Item 1A. Risk Factors
25

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
25

Item 3. Defaults Upon Senior Securities
25

Item 4. Mine Safety Disclosures
25

Item 5. Other Information
25

Item 6. Exhibits
26

Signature
27

 

* The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “first quarter of 2025” and “first quarter of 2024” refer to the thirteen-week periods ended May 3, 2025 and May 4, 2024, respectively.

2

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)
 

  First Quarter
  2025 2024
Net Sales $ 1,424   $ 1,384  
Costs of Goods Sold, Buying and Occupancy ( 778 ) ( 778 )
Gross Profit 646   606  
General, Administrative and Store Operating Expenses ( 437 ) ( 419 )
Operating Income 209   187  
Interest Expense ( 71 ) ( 82 )
Other Income, Net 8   13  
Income Before Income Taxes 146   118  
Provision for Income Taxes ( 41 ) ( 31 )
Net Income $ 105   $ 87  
Net Income per Basic Share $ 0.49   $ 0.39  
Net Income per Diluted Share $ 0.49   $ 0.38  

BATH & BODY WORKS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(Unaudited)

First Quarter
2025 2024
Net Income $ 105   $ 87  
Other Comprehensive Income (Loss), Net of Tax:
   Foreign Currency Translation 6   ( 2 )
   Unrealized (Loss) Gain on Cash Flow Hedges ( 3 ) 1  
   Reclassification of Cash Flow Hedges to Earnings ( 1 ) —  
Total Other Comprehensive Income (Loss), Net of Tax 2   ( 1 )
Total Comprehensive Income $ 107   $ 86  

The accompanying Notes are an integral part of these Consolidated Financial Statements.
3

Table of Contents

BATH & BODY WORKS, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except par value amounts)

May 3,
2025 February 1,
2025 May 4,
2024
(Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 636   $ 674   $ 855  
Accounts Receivable, Net 103   205   121  
Inventories 869   734   814  
Easton Assets Held for Sale 97   96   —  
Other 115   114   127  
Total Current Assets 1,820   1,823   1,917  
Property and Equipment, Net 1,111   1,127   1,183  
Operating Lease Assets 970   949   1,047  
Goodwill 628   628   628  
Trade Name 165   165   165  
Deferred Income Taxes 133   130   143  
Other Assets 54   50   138  
Total Assets $ 4,881   $ 4,872   $ 5,221  
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts Payable $ 452   $ 338   $ 403  
Accrued Expenses and Other 495   584   489  

Current Operating Lease Liabilities 201   192   186  
Income Taxes 146   117   143  
Total Current Liabilities 1,294   1,231   1,221  
Deferred Income Taxes 23   24   147  
Long-term Debt 3,886   3,884   4,282  
Long-term Operating Lease Liabilities 895   883   990  
Other Long-term Liabilities 233   233   257  
Shareholders’ Equity (Deficit):
Preferred Stock - $ 1.00 par value; 10 shares authorized; none issued
—   —   —  
Common Stock - $ 0.50 par value; 1,000 shares authorized; 227 , 231 and 238 shares issued; 212 , 216 and 223 shares outstanding, respectively
113   115   119  
Paid-in Capital 818   829   841  
Accumulated Other Comprehensive Income 73   71   74  
Retained Earnings (Accumulated Deficit) ( 1,633 ) ( 1,578 ) ( 1,889 )
Less: Treasury Stock, at Average Cost; 15 , 15 and 15 shares, respectively
( 822 ) ( 822 ) ( 822 )
Total Shareholders’ Equity (Deficit) ( 1,451 ) ( 1,385 ) ( 1,677 )
Noncontrolling Interest 1   2   1  
Total Equity (Deficit) ( 1,450 ) ( 1,383 ) ( 1,676 )
Total Liabilities and Equity (Deficit) $ 4,881   $ 4,872   $ 5,221  

The accompanying Notes are an integral part of these Consolidated Financial Statements.
4

Table of Contents

BATH & BODY WORKS, INC.
CONSOLIDATED STATEMENTS OF TOTAL EQUITY (DEFICIT)
(in millions, except per share amounts)
(Unaudited)

First Quarter 2025

  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 1, 2025
216   $ 115   $ 829   $ 71   $ ( 1,578 ) $ ( 822 ) $ 2   $ ( 1,383 )
Net Income —  —  —  —  105   —  —  105  
Other Comprehensive Income —  —  —  2   —  —  —  2  
Total Comprehensive Income —  —  —  2   105   —  —  107  
Cash Dividends ($ 0.20 per share)
—  —  —  —  ( 43 ) —  —  ( 43 )
Repurchases of Common Stock ( 4 ) —  —  —  —  ( 135 ) —  ( 135 )
Treasury Share Retirement —  ( 2 ) ( 16 ) —   ( 117 ) 135   —  —  
Share-based Compensation and Other —  —  5   —  —  —  ( 1 ) 4  
Balance, May 3, 2025
212   $ 113   $ 818   $ 73   $ ( 1,633 ) $ ( 822 ) $ 1   $ ( 1,450 )

First 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, February 3, 2024
225   $ 120   $ 838   $ 75   $ ( 1,838 ) $ ( 822 ) $ 1   $ ( 1,626 )
Net Income —  —  —  —  87   —  —  87  
Other Comprehensive Loss —  —  —  ( 1 ) —  —  —  ( 1 )
Total Comprehensive Income —  —  —  ( 1 ) 87   —  —  86  
Cash Dividends ($ 0.20 per share)
—  —  —  —  ( 45 ) —  —  ( 45 )
Repurchases of Common Stock ( 2 ) —  —  —  —  ( 99 ) —  ( 99 )
Treasury Share Retirement —  ( 1 ) ( 5 ) —  ( 93 ) 99   —  —  
Share-based Compensation and Other —  —  8   —  —  —  —  8  
Balance, May 4, 2024
223   $ 119   $ 841   $ 74   $ ( 1,889 ) $ ( 822 ) $ 1   $ ( 1,676 )

The accompanying Notes are an integral part of these Consolidated Financial Statements.
5

Table of Contents

BATH & BODY WORKS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(Unaudited)
  First Quarter
  2025 2024
Operating Activities:
Net Income $ 105   $ 87  
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation of Long-lived Assets 64   71  
Share-based Compensation Expense 10   12  

Changes in Assets and Liabilities:
Accounts Receivable 103   103  
Inventories ( 134 ) ( 105 )
Accounts Payable, Accrued Expenses and Other 14   ( 101 )
Income Taxes Payable 34   25  
Other Assets and Liabilities ( 8 ) ( 16 )
Net Cash Provided by Operating Activities 188   76  
Investing Activities:
Capital Expenditures ( 37 ) ( 46 )

Other Investing Activities ( 2 ) —  
Net Cash Used for Investing Activities ( 39 ) ( 46 )
Financing Activities:
Payments for Long-term Debt —   ( 110 )
Repurchases of Common Stock ( 136 ) ( 96 )
Dividends Paid ( 43 ) ( 45 )
Tax Payments Related to Share-based Awards ( 4 ) ( 7 )
Other Financing Activities ( 5 ) ( 1 )
Net Cash Used for Financing Activities ( 188 ) ( 259 )
Effects of Exchange Rate Changes on Cash and Cash Equivalents 1   —  
Net Decrease in Cash and Cash Equivalents ( 38 ) ( 229 )
Cash and Cash Equivalents, Beginning of Year 674   1,084  
Cash and Cash Equivalents, End of Period $ 636   $ 855  

 
The accompanying Notes are an integral part of these Consolidated Financial Statements.
6

Table of Contents

BATH & BODY WORKS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1. Description of Business and Basis of Presentation
Description of Business
Bath & Body Works, Inc. (the “Company”) is a global omnichannel retailer focused on personal care and home fragrance. The Company sells merchandise through its retail stores in the United States of America (“U.S.”) and Canada, and through its websites and other channels, under the Bath & Body Works®, White Barn® and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners.
Fiscal Year
The Company’s fiscal year ends on the Saturday nearest to January 31. As used herein, “first quarter of 2025” and “first quarter of 2024” refer to the thirteen-week periods ended May 3, 2025 and May 4, 2024, respectively, and references to “quarter” and “year” each refer to the fiscal calendar period.
Basis of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for investments in unconsolidated entities where it exercises significant influence, but does not have control, using the equity method. Under the equity method of accounting, the Company recognizes its share of the investee’s net income or loss. Losses are only recognized to the extent the Company has positive carrying value related to the investee. Carrying values are only reduced below zero if the Company has an obligation to provide funding to the investee. The Company’s share of net income or loss of all unconsolidated entities is included in Other Income, Net in the Consolidated Statements of Income. The Company’s equity method investments are required to be reviewed for impairment when it is determined there may be an other-than-temporary loss in value.
Interim Financial Statements
The Consolidated Financial Statements as of and for the periods ended May 3, 2025 and May 4, 2024 are unaudited and are presented pursuant to the rules and regulations of the Securities and Exchange Commission. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in the Company’s 2024 Annual Report on Form 10-K.
In the opinion of management, the accompanying Consolidated Financial Statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods.
Seasonality of Business
The Company’s operations are seasonal in nature and consist of two principal selling seasons: Spring (the first and second quarters) and Fall (the third and fourth quarters). Typically, the Company’s sales are highest during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Due to the seasonal variations in the retail industry, the results of operations for the interim periods are not necessarily indicative of the results expected for the full fiscal year.
Derivative Financial Instruments
The Company’s Canadian dollar denominated earnings are subject to exchange rate risk as substantially all the Company’s merchandise sold in Canada is sourced through U.S. dollar transactions. The Company uses foreign currency forward contracts designated as cash flow hedges to mitigate this foreign currency exposure. Amounts are reclassified from Accumulated Other Comprehensive Income upon sale of the hedged merchandise to the customer. These gains and losses are recognized in Costs of Goods Sold, Buying and Occupancy in the Consolidated Statements of Income. All designated cash flow hedges are recorded on the Consolidated Balance Sheets at fair value. The fair value of designated cash flow hedges is not significant for any period presented. The Company does not use derivative financial instruments for trading purposes.
Supplier Finance Program
In the fourth quarter of 2024, the Company implemented a supply chain finance (“SCF”) program agreement with a third-party financial institution, whereby the Company’s merchandise suppliers have the opportunity to settle outstanding payment obligations early, at a discount, facilitated by the financial institution. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by suppliers’ participation in the arrangement and the Company provides no guarantees to any third parties under the SCF program. Amounts due under the SCF program are included in Accounts Payable in the Consolidated Balance Sheets and within Operating Activities in the Consolidated Statements of Cash
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Flows. Amounts due under the SCF program were $ 52 million and $ 7 million as of May 3, 2025 and February 1, 2025, respectively.
Concentration of Credit Risk
The Company maintains cash and cash equivalents and derivative contracts with various major financial institutions. The Company monitors the relative credit standing of financial institutions with whom it transacts and limits the amount of credit exposure with any one entity. The Company’s investment portfolio is primarily composed of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits.
The Company also periodically reviews the relative credit standing of franchise, license and wholesale partners and other entities to which it grants credit terms in the normal course of business. The Company determines the required allowance for expected credit losses using information such as customer credit history and financial condition. Amounts are recorded to the allowance when it is determined that expected credit losses may occur.
Easton Investments
The Company has land and other investments in Easton, a planned community in Columbus, Ohio, that integrates office, hotel, retail, residential and recreational space. As of May 3, 2025 and February 1, 2025, certain of these investments met all of the required criteria for held for sale presentation, which requires assets to be reported at the lower of their carrying value or fair value less costs to sell. These investments, consisting primarily of undeveloped land, are reported at their carrying value, which was $ 97 million and $ 96 million as of May 3, 2025 and February 1, 2025, respectively, within Current Assets on the Consolidated Balance Sheets. The Company also had other Easton investments not presented as held for sale, with a carrying value of $ 24 million and $ 26 million as of May 3, 2025 and February 1, 2025, respectively.
The Company’s Easton investments totaled $ 121 million as of May 4, 2024, and are reported in Other Assets on the May 4, 2024 Consolidated Balance Sheet as they did not meet all of the required criteria for held for sale presentation as of that date.
Previously included in the Company’s Easton investments were equity interests in Easton Town Center, LLC (“ETC”) and Easton Gateway, LLC (“EG”), entities that own and develop commercial entertainment and shopping centers. The Company’s investments in ETC and EG were accounted for using the equity method of accounting. In the second quarter of 2024, the Company sold its entire interest in the business associated with EG and its entire interest in ETC.
Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Actual results may differ from those estimates, and the Company revises its estimates and assumptions as new information becomes available.
Recently Issued Accounting Pronouncements
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures , that requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting this standard on its disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , that requires disclosures of disaggregated information about certain prescribed expense categories within relevant income statement expense captions. This standard is effective for annual reporting of fiscal years beginning after December 15, 2026, and for interim periods in the following year, with early adoption permitted. This standard should be applied prospectively, with retrospective application permitted. The Company is currently evaluating the impact of adopting this standard on its disclosures.

2. Revenue Recognition
Accounts receivable, net from revenue-generating activities were $ 67 million as of May 3, 2025, $ 81 million as of February 1, 2025 and $ 74 million as of May 4, 2024. These accounts receivable primarily relate to amounts due from the Company’s franchise, license and wholesale partners. Under these arrangements, payment terms are typically 45 to 75 days.
The Company records deferred revenue when cash payments are received in advance of transfer of control of goods or services. Deferred revenue primarily relates to gift cards, loyalty points and rewards, and direct channel shipments not received by the customer, which are all impacted by seasonal and holiday-related sales patterns. Deferred revenue, which is recorded within Accrued Expenses and Other on the Consolidated Balance Sheets, was $ 177 million as of May 3, 2025, $ 197 million as of
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February 1, 2025 and $ 178 million as of May 4, 2024. The Company recognized $ 64 million as revenue during the first quarter of 2025 from amounts recorded as deferred revenue at the beginning of the Company’s fiscal year.
The following table provides a disaggregation of Net Sales for the first quarters of 2025 and 2024:

First Quarter
2025 2024
(in millions)
Stores - U.S. and Canada (a) $ 1,110   $ 1,065  
Direct - U.S. and Canada 250   261  
International (b) 64   58  
Total Net Sales $ 1,424   $ 1,384  
_______________
(a) Results include fulfilled buy online pick up in store orders.
(b) Results include royalties associated with franchised stores and wholesale sales.
The Company’s Net Sales outside of the U.S. include sales from Company-operated stores and its e-commerce site in Canada, royalties associated with franchised stores and wholesale sales. Certain of these sales are subject to the impact of fluctuations in foreign currency. The Company’s Net Sales outside of the U.S. totaled $ 132  million and $ 126  million for the first quarters of 2025 and 2024, respectively .

3. Net Income Per Share and Shareholders’ Equity (Deficit)
Net Income Per Share
Net Income per Basic Share is computed based on the weighted-average number of common shares outstanding. Net Income per Diluted Share includes the weighted-average effect of dilutive restricted share units, performance share units and stock options (collectively, “Dilutive Awards”) on the weighted-average common shares outstanding.
The following table provides the weighted-average shares utilized for the calculation of Net Income per Basic and Diluted Share for the first quarters of 2025 and 2024:

  First Quarter
2025 2024
(in millions)

Common Shares 229   240  
Treasury Shares ( 15 ) ( 15 )
Basic Shares 214   225  
Effect of Dilutive Awards 1   1  
Diluted Shares 215   226  
Anti-dilutive Awards (a) —   1  
 _______________
(a) These awards were excluded from the calculation of Net Income per Diluted Share because their inclusion would have been anti-dilutive.
Common Stock Repurchases and Retirements
Under the authority of the Company’s Board of Directors, the Company repurchased shares of its common stock under the following repurchase programs during the first quarters of 2025 and 2024:

Repurchase
Program Amount
Authorized Shares
Repurchased Amount
Repurchased Average Stock Price
2025 2024 2025 2024 2025 2024
(in millions) (in thousands) (in millions)
February 2022 $ 1,500   NA 842   NA $ 39   NA $ 46.08  
January 2024 500   460   1,329   $ 17   60   $ 37.67   45.32  
January 2025 500   3,866   NA 118   NA 30.47   NA
Total 4,326   2,171   $ 135   $ 99  

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Shares repurchased under these programs are retired and cancelled upon repurchase. As a result, the Company retired the 4.326  million and 2.171  million shares repurchased during the first quarters of 2025 and 2024, respectively.
The January 2024 Program had $ 139 million of remaining authority as of February 1, 2025. There were share repurchases of $ 1 million as of February 1, 2025 and $ 5 million as of May 4, 2024 reflected in Accounts Payable on the Consolidated Balance Sheets.
On February 27, 2025, the Company cancelled the remaining $ 121  million authorization available under the January 2024 Program and began repurchasing shares under the January 2025 Program. The January 2025 Program had $ 382 million of remaining authority as of May 3, 2025.
Dividends
The Company paid the following dividends during the first quarters of 2025 and 2024:

Ordinary Dividends Total Paid
(per share) (in millions)
2025
First Quarter $ 0.20   $ 43  

2024
First Quarter $ 0.20   $ 45  

In May 2025, the Company declared its second quarter 2025 ordinary dividend of $ 0.20 per share payable on June 20, 2025 to shareholders of record at the close of business on June 6, 2025.

4. Inventories
The following table provides details of Inventories as of May 3, 2025, February 1, 2025 and May 4, 2024:

May 3,
2025 February 1,
2025 May 4,
2024
(in millions)
Finished Goods Merchandise $ 696   $ 589   $ 673  
Raw Materials and Merchandise Components 173   145   141  
Total Inventories $ 869   $ 734   $ 814  

Inventories are principally valued at the lower of cost or net realizable value, on an average cost basis.

5. Long-lived Assets
The following table provides details of Property and Equipment, Net as of May 3, 2025, February 1, 2025 and May 4, 2024:

May 3,
2025 February 1,
2025 May 4,
2024
(in millions)
Property and Equipment, at Cost $ 3,250   $ 3,217   $ 3,129  
Accumulated Depreciation and Amortization ( 2,139 ) ( 2,090 ) ( 1,946 )
Property and Equipment, Net $ 1,111   $ 1,127   $ 1,183  

Depreciation expense was $ 64 million and $ 71 million for the first quarters of 2025 and 2024, respectively.

6. Income Taxes
The provision for income taxes is based on the current estimate of the annual effective tax rate and is adjusted as necessary for quarterly events.
For the first quarter of 2025, the Company’s effective tax rate was 28.4 % compared to 26.8 % in the first quarter of 2024. The 2025 and 2024 first quarter rates were higher than the Company’s combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits.
Income taxes paid were $ 7 million and $ 6 million for the first quarters of 2025 and 2024, respectively.
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7. Long-term Debt and Borrowing Facility
The following table provides the Company’s outstanding Long-term Debt balances, net of unamortized debt issuance costs and discounts, as of May 3, 2025, February 1, 2025 and May 4, 2024:

May 3,
2025 February 1,
2025 May 4,
2024
(in millions)
Senior Debt with Subsidiary Guarantee
$ 500 million, 9.375 % Fixed Interest Rate Notes due July 2025 (“2025 Notes”)
$ —   $ —   $ 313  
$ 284 million, 6.694 % Fixed Interest Rate Notes due January 2027 (“2027 Notes”)
277   277   287  
$ 444 million, 5.250 % Fixed Interest Rate Notes due February 2028 (“2028 Notes”)
443   443   450  
$ 482 million, 7.500 % Fixed Interest Rate Notes due June 2029 (“2029 Notes”)
476   476   485  
$ 844 million, 6.625 % Fixed Interest Rate Notes due October 2030 (“2030 Notes”)
839   838   893  
$ 802 million, 6.875 % Fixed Interest Rate Notes due November 2035 (“2035 Notes”)
797   796   800  
$ 575 million, 6.750 % Fixed Interest Rate Notes due July 2036 (“2036 Notes”)
571   571   571  
Total Senior Debt with Subsidiary Guarantee 3,403   3,401   3,799  
Senior Debt
$ 284 million, 6.950 % Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)
283   283   283  
$ 201 million, 7.600 % Fixed Interest Rate Notes due July 2037 (“2037 Notes”)
200   200   200  
Total Senior Debt 483   483   483  
Total Long-term Debt $ 3,886   $ 3,884   $ 4,282  

Repurchases of Notes
The Company did not repurchase any outstanding senior notes during the first quarter of 2025.
During the first quarter of 2024, the Company repurchased in the open market and extinguished $ 109 million principal amount of its outstanding senior notes. The aggregate repurchase price for these notes was $ 110 million, resulting in a pre-tax loss of $ 1 million, including the write-off of unamortized issuance costs. This loss is included in Other Income, Net in the first quarter of 2024 Consolidated Statement of Income.
The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the first quarter of and the full year 2024:

First Quarter Full Year

(in millions)
2025 Notes $ —   $ 314  
2027 Notes —   14  
2028 Notes 10   17  
2029 Notes 7   17  
2030 Notes 38   94  
2033 Notes 10   10  
2035 Notes 6   10  
2036 Notes 38   38  

Total $ 109   $ 514  

Asset-backed Revolving Credit Facility
The Company and certain of the Company’s 100 % owned subsidiaries guarantee and pledge collateral to secure an asset-backed revolving credit facility (“ABL Facility”). The ABL Facility, which allows borrowings and letters of credit in U.S. dollars, has aggregate commitments of $ 750 million and, as of May 3, 2025, had an expiration date in August 2026.
Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on the Company’s eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, the Company is required to repay the outstanding amounts under the ABL Facility to
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the extent of such excess. As of May 3, 2025, the Company’s borrowing base was $ 639 million, and it had no borrowings outstanding under the ABL Facility.
The ABL Facility supports the Company’s letter of credit program. The Company had $ 11 million of outstanding letters of credit as of May 3, 2025 that reduced its availability under the ABL Facility. As of May 3, 2025, the Company’s availability under the ABL Facility was $ 628 million.
As of May 3, 2025, the ABL Facility fees related to committed and unutilized amounts were 0.30 % per annum, and the fees related to outstanding letters of credit were 1.25 % per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the Term Secured Overnight Financing Rate plus 1.25 % and a credit spread adjustment of 0.10 % per annum.
The ABL Facility requires the Company to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (i) $ 70 million or (ii) 10 % of the maximum borrowing amount. As of May 3, 2025, the Company was not required to maintain this ratio.
Subsequent to May 3, 2025, the Company entered into an amendment and restatement of the ABL Facility, which removed the interest rate credit spread adjustment of 0.10 %, extended the expiration date from August 2026 to May 2030 and included other technical amendments.

8. Fair Value Measurements
Cash and Cash Equivalents include cash on hand, deposits with financial institutions and highly liquid investments with original maturities of less than 90 days. The Company’s Cash and Cash Equivalents are considered Level 1 fair value measurements as they are valued using unadjusted quoted prices in active markets for identical assets.
The following table provides a summary of the principal value and estimated fair value of the Company’s outstanding Long-term debt as of May 3, 2025, February 1, 2025 and May 4, 2024:

May 3,
2025 February 1,
2025 May 4,
2024
(in millions)
Principal Value $ 3,916   $ 3,916   $ 4,321  
Fair Value, Estimated (a) 3,957   3,986   4,351  

   _______________
(a) The estimated fair value of the Company’s Long-term debt is based on reported transaction prices, which are considered Level 2 inputs in accordance with Accounting Standards Codification 820, Fair Value Measurement . The estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange.
Management believes that the carrying values of the Company’s Accounts Receivable, Accounts Payable and Accrued Expenses approximate their fair values because of their short maturities.

9. Commitments and Contingencies
The Company is subject to various claims and contingencies related to lawsuits, taxes, insurance, regulatory and other matters arising in the ordinary course of business. Actions filed against the Company from time to time may include commercial, tort, intellectual property, tax, customer, employment, wage and hour, data privacy, securities, anti-corruption and other claims, including purported class action lawsuits. Management believes that the ultimate liability arising from such claims and contingencies, if any, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows.
Lease Guarantees
In connection with the spin-off of Victoria’s Secret & Co., the Company had remaining contingent obligations of $ 227 million as of May 3, 2025 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the spin-off. The Company’s reserves related to these obligations were not significant for any period presented.

10. Segment Reporting
The Company is managed at the consolidated level and therefore operates and reports as a single segment. During the first quarter of 2025, the Company’s Chief Executive Officer was its Chief Operating Decision Maker (“CODM”), and the measure of profitability included in the financial information regularly provided to the CODM was total Company Operating Income. The Company’s CODM assesses Operating Income performance in comparison to forecasts and historical results to make decisions on the reinvestment of profits into the business and capital allocation strategies.
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The following table illustrates significant segment expenses that were regularly provided to the CODM for the first quarters of 2025 and 2024:

First Quarter
2025 2024
  (in millions)
Net Sales $ 1,424   $ 1,384  
Cost of Goods Sold ( 509 ) ( 509 )
Buying and Occupancy ( 269 ) ( 269 )
Gross Profit 646   606  
Selling Expenses ( 256 ) ( 247 )
Marketing Expenses ( 49 ) ( 45 )
General and Administrative Expenses ( 132 ) ( 127 )
Operating Income $ 209   $ 187  

As a single reportable segment entity, the other disclosures required by ASC 280, Segment Reporting, can be found in the Company’s Consolidated Financial Statements and the Notes thereto, including the Company’s measure of segment assets, which was total consolidated assets.

11. Subsequent Events
Effective May 16, 2025, Gina Boswell ceased serving as the Company’s Chief Executive Officer, and resigned as a member of its Board. Also on May 16, 2025, the Company’s Board appointed Daniel Heaf to serve as the Company’s new Chief Executive Officer. Mr. Heaf will be appointed as a member of the Board effective as of immediately following the conclusion of the Company’s 2025 Annual Meeting of Shareholders.
On May 22, 2025, the Company entered into an amendment and restatement of the ABL Facility, which removed the interest rate credit spread adjustment of 0.10 %, extended the expiration date from August 2026 to May 2030 and included other technical amendments.
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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Bath & Body Works, Inc.
Results of Review of Interim Financial Statements
We have reviewed the accompanying consolidated balance sheets of Bath & Body Works, Inc. (the Company) as of May 3, 2025 and May 4, 2024, the related consolidated statements of income, comprehensive income, total equity (deficit), and cash flows for the thirteen-week periods ended May 3, 2025 and May 4, 2024, and the related notes (collectively referred to as the “consolidated interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of February 1, 2025, and the related consolidated statements of income, comprehensive income, total equity (deficit), and cash flows for the year then ended, and the related notes (not presented herein); and in our report dated March 14, 2025, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of February 1, 2025, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results
These financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLP
Grandview Heights, Ohio
May 29, 2025

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SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION ACT OF 1995
We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this report or made by our Company or our management involve risks and uncertainties and are subject to change based on various factors, many of which are beyond our control. Accordingly, our future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Words such as “estimate,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend,” “planned,” “potential,” “target,” “goal” and any similar expressions may identify forward-looking statements. There are risks, uncertainties and other factors that in some cases have affected and, in the future, could affect our financial performance and actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements included in this report or otherwise made by the Company or our management. These factors can be found in Item 1A. Risk Factors in our 2024 Annual Report on Form 10-K, and our subsequent filings.
We are not under any obligation and do not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this report to reflect circumstances existing after the date of this report or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
We announce material financial and operational information using our investor relations website, press releases, SEC filings and public conference calls and webcasts. Information about the Company, our business and our results of operations may also be announced by posts on our accounts on social media channels, including the following: Facebook, Instagram, X, LinkedIn, Pinterest, TikTok and YouTube. The information contained on, or that can be accessed through, our social media channels and our website is deemed not to be incorporated in this Quarterly Report on Form 10-Q or to be a part of this Quarterly Report on Form 10-Q. The information that we post through these social media channels and on our website may be deemed material. As a result, we encourage investors, the media and others interested in the Company to monitor these social media channels in addition to following our investor relations website, press releases, SEC filings and public conference calls and webcasts. The list of social media channels we use may be updated from time to time on our investor relations website.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of financial condition and results of operations is based upon our Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) as codified in the Accounting Standards Codification. The following information should be read in conjunction with our financial statements and the related notes included in Part I, Item 1. Financial Statements in this Quarterly Report on Form 10-Q.
Executive Overview
In the first quarter of 2025, consolidated Net Sales were $1,424 million, which increased $40 million, or 2.9%, compared to the first quarter of 2024. Total North American Net Sales increased $34 million, primarily due to increases in transactions and average dollar sales, and International Net Sales increased $6 million. Our first quarter Operating Income was $209 million, which increased $22 million, or 11.7%, compared to the first quarter of 2024, and our Operating Income rate (expressed as a percentage of Net Sales) increased to 14.7% from 13.5%. The Operating Income rate increase was primarily due to a higher Gross Profit rate, partially offset by an increase in General, Administrative and Store Operating Expenses.
For additional information related to our first quarter 2025 financial performance, see “Results of Operations.”
Outlook
We believe our strategy and actions position the Company to achieve sustainable, profitable growth and to drive long-term shareholder value. We believe our continued innovation across our core categories supported by compelling marketing and enhanced technology, building on innovation platforms we launched in 2024 and extending our reach through adjacencies and international expansion, will continue to accelerate Net Sales growth over the long term. Amid a challenging macroeconomic backdrop, we have remained disciplined and decisive in our actions which is evidenced in our current performance.
We expect consumers to continue value-seeking behavior and consumer sentiment to remain volatile as the broad-based tariffs imposed by the U.S. government, and threatened or imposed retaliatory measures by other countries, have increased macroeconomic uncertainty in global markets. We are actively monitoring the changes in shifting trade policies and related market disruptions and are leveraging our predominately U.S.-based supply chain to take proactive measures to mitigate global trade policy shifts and to offset our tariff exposure over time. Building on our current performance, proactive tariff mitigation strategies, and our strong, predominately U.S.-based supply chain, we believe we are well-positioned to absorb the impacts of tariffs currently in effect and levied. Continued changes in trade policies and disruptions could have substantial impacts on the global economy and may magnify the impact of the risks to our business described in our Annual Report on Form 10-K.
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Company-operated Stores
The following table compares Company-operated U.S. store data for the first quarters of 2025 and 2024:

First Quarter
2025 2024 % Change
Sales per Average Selling Square Foot (a) $ 207  $ 204  1  %
Sales per Average Store (in thousands) (a) $ 588  $ 577  2  %
Average Store Size (selling square feet) 2,845  2,831  —  %
Total Selling Square Feet (in thousands) 5,083  4,937  3  %
 ________________
(a) Sales per average selling square foot and sales per average store, which are indicators of store productivity, are calculated based on store sales for the period divided by the average, including the beginning and end of period, of total selling square footage and store count, respectively.
The following table represents Company-operated store activity for the first quarter of 2025:

Stores Stores
February 1, 2025 Opened Closed May 3, 2025
United States 1,782  13  (8) 1,787 
Canada 113  —  —  113 
Total 1,895  13  (8) 1,900 

Partner-operated Stores
The following table represents Partner-operated store activity for the first quarter of 2025:

Stores Stores
February 1, 2025 Opened Closed May 3, 2025
International 494  12  (17) 489 
International - Travel Retail 35  2  (2) 35 
Total International (a) 529  14  (19) 524 
________________
(a) Includes store locations only and does not include kiosks, shop-in-shops, gondola or beauty counter locations.

Results of Operations
First Quarter of 2025 Compared to the First Quarter of 2024
Net Sales
The following table provides Net Sales for the first quarter of 2025 in comparison to the first quarter of 2024:

2025 2024 % Change
(in millions)  
Stores - U.S. and Canada (a) $ 1,110  $ 1,065  4.3  %
Direct - U.S. and Canada 250  261  (4.3  %)
International (b) 64  58  10.1  %
Total Net Sales $ 1,424  $ 1,384  2.9  %
 _______________
(a) Results include fulfilled buy online pick up in store (“BOPIS”) orders.
(b) Results include royalties associated with franchised stores and wholesale sales.
For the first quarter of 2025, total Net Sales were $1,424 million and increased $40 million, or 2.9%, compared to the first quarter of 2024. Stores Net Sales increased $45 million, or 4.3%, primarily driven by an increase in transactions due to an increase in BOPIS fulfilled orders (which are recognized as store Net Sales) and new store growth, and an increase in average dollar sales. Direct Net Sales decreased $11 million, or 4.3%, driven by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option, partially offset by an increase in average order size. International Net Sales increased $6 million, or 10.1%, driven by timing of product shipments to our partners.
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Gross Profit
For the first quarter of 2025, our Gross Profit increased $40 million to $646 million, and our Gross Profit rate (expressed as a percentage of Net Sales) increased to 45.4%, from 43.8% in the first quarter of 2024. Gross Profit dollars increased due to higher Net Sales and a 100 basis point improvement in the merchandise margin rate, which was primarily driven by strategic pricing and strong cost management. Category mix shifts drove both lower average unit retails and average unit costs during the quarter.
Gross Profit rate increased due to the merchandise margin rate improvement as well as leverage on Occupancy Expenses due to Net Sales growth.
General, Administrative and Store Operating Expenses
The following table provides detail for our General, Administrative and Store Operating Expenses for the first quarter of 2025 compared to the first quarter of 2024:

2025 2024 Change
(in millions) % of Net Sales (in millions) % of Net Sales (in millions) % of Net Sales
Selling Expenses $ 256  18.0  % $ 247  17.8  % $ 9  0.2  %
Marketing Expenses 49  3.5  % 45  3.3  % 4  0.1  %
General and Administrative Expenses 132  9.3  % 127  9.2  % 5  0.1  %
Total $ 437  30.7  % $ 419  30.3  % $ 18  0.4  %

For the first quarter of 2025, our total General, Administrative and Store Operating Expenses increased $18 million to $437 million, and the rate (expressed as a percentage of Net Sales) increased to 30.7% from 30.3% in the first quarter of 2024. Selling Expenses and General and Administrative Expenses both increased primarily due to higher payroll related costs, mainly driven by wage inflation, partially offset by the benefits of our cost optimization work.
The General, Administrative and Store Operating Expense rate increased primarily due to the increase in payroll related costs and incremental investments in marketing.
Other Income and Expenses
Interest Expense
The following table provides the average daily borrowings and average borrowing rates for the first quarters of 2025 and 2024:

2025 2024
Average daily borrowings (in millions) $ 3,916  $ 4,386 
Average borrowing rate 7.1  % 7.3  %

For the first quarter of 2025, our Interest Expense was $71 million, compared to $82 million in the first quarter of 2024. The decrease was due to lower average daily borrowings and borrowing rate, which were driven by the early extinguishment of outstanding notes.
Other Income, Net
For the first quarter of 2025, our Other Income, Net was $8 million, compared to $13 million in the first quarter of 2024. The decrease was primarily due to lower interest income on invested cash in the first quarter of 2025.
Provision for Income Taxes
For the first quarter of 2025, our effective tax rate was 28.4% compared to 26.8% in the first quarter of 2024. The 2025 and 2024 first quarter rates were higher than our combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits.
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FINANCIAL CONDITION
Liquidity and Capital Resources
Liquidity, or access to cash, is an important factor in determining our financial stability. We are committed to maintaining adequate liquidity. Cash generated from our operating activities provides the primary resources to support current operations, growth initiatives, seasonal funding requirements, future common stock and debt repurchases, and capital expenditures. Our cash provided from operations is impacted by our net income and working capital changes. Our net income is impacted by, among other things, sales volume, seasonal sales patterns, success of new product introductions and product and market expansions, profit margins, income taxes and inflationary pressures. Typically, our sales are highest during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Generally, our need for working capital peaks during the summer and fall months as inventory builds in anticipation of the holiday period. Our cash and cash equivalents held by foreign subsidiaries were $182 million as of May 3, 2025.
During the first quarter of 2025, we repurchased 4.326 million shares of our common stock for $135 million. We may, from time to time, repurchase, or otherwise retire, additional debt or shares of our common stock, as applicable.
We believe that our current cash position, our cash flows generated from operations and our borrowing capacity under our asset-backed revolving credit facility (“ABL Facility”) will be sufficient to meet our liquidity needs, including capital expenditure requirements, for at least the next twelve months.
Cash Flows
The following table provides a summary of our cash flow activity during the first quarters of 2025 and 2024:

2025 2024
(in millions)
Cash and Cash Equivalents, Beginning of Year $ 674  $ 1,084 
Net Cash Flows Provided by Operating Activities 188  76 
Net Cash Flows Used for Investing Activities (39) (46)
Net Cash Flows Used for Financing Activities (188) (259)
Effects of Exchange Rate Changes on Cash and Cash Equivalents 1  — 
Net Decrease in Cash and Cash Equivalents (38) (229)
Cash and Cash Equivalents, End of Period $ 636  $ 855 

Operating Activities
Net cash provided by operating activities in the first quarter of 2025 was $188 million, including net income of $105 million. Net income included depreciation of $64 million and share-based compensation expense of $10 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories and Accounts Receivable.
Net cash provided by operating activities in the first quarter of 2024 was $76 million, including net income of $87 million. Net income included depreciation of $71 million and share-based compensation expense of $12 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories, Accounts Receivable and Accounts Payable, Accrued Expenses and Other.
Investing Activities
Net cash used for investing activities in the first quarter of 2025 was $39 million, primarily related to capital expenditures. The capital expenditures included approximately $25 million related to new off-mall stores and remodels of existing stores and approximately $10 million for various technology projects primarily to support the growth and profitability of our business.
Net cash used for investing activities in the first quarter of 2024 was $46 million related to capital expenditures. The capital expenditures included approximately $35 million related to new, primarily off-mall stores and remodels of existing stores.
In 2025, our top priority remains driving sustainable, long-term, profitable growth through strategic investments in the business. To support this, we continue to plan capital expenditures of approximately $250 million to $270 million during the year, with a focus on real estate and technology.
Financing Activities
Net cash used for financing activities in the first quarter of 2025 was $188 million, primarily consisting of $136 million for share repurchases and dividend payments of $0.20 per share, or $43 million.
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Net cash used for financing activities in the first quarter of 2024 was $259 million, primarily consisting of $110 million for open market debt repurchases, $96 million for share repurchases, dividend payments of $0.20 per share, or $45 million, and $7 million of tax payments related to share-based awards.
Common Stock and Debt Repurchases
Our Board of Directors (our “Board”) will determine share and debt repurchase authorizations, giving consideration to our levels of profit and cash flow, capital requirements, current and forecasted liquidity, the restrictions placed upon us by our borrowing arrangements as well as financial and other conditions existing at the time. We use cash flow generated from operating and financing activities to fund our share and debt repurchase programs. The timing and amount of any repurchases will be made at our discretion, taking into account a number of factors, including market conditions.
Common Stock Repurchases
Under the authority of our Board of Directors, we repurchased shares of our common stock under the following repurchase programs during the first quarters of 2025 and 2024:

Repurchase
 Program Amount
Authorized Shares
Repurchased Amount
Repurchased Average Stock Price
2025 2024 2025 2024 2025 2024
(in millions) (in thousands) (in millions)
February 2022 $ 1,500  NA 842  NA $ 39  NA $ 46.08 
January 2024 500  460  1,329  $ 17  60  $ 37.67  45.32 
January 2025 500  3,866  NA 118  NA 30.47  NA
Total 4,326  2,171  $ 135  $ 99 

The January 2024 Program had $139 million of remaining authority as of February 1, 2025. There were share repurchases of $1 million as of February 1, 2025 and $5 million as of May 4, 2024 reflected in Accounts Payable on the Consolidated Balance Sheets.
On February 27, 2025, we cancelled the remaining $121 million authorization available under the January 2024 Program and began repurchasing shares under the January 2025 Program. The January 2025 Program had $382 million of remaining authority as of May 3, 2025.
Dividend Policy and Procedures
Our Board will determine future dividends after giving consideration to our levels of profit and cash flow, capital requirements, current and forecasted liquidity, the restrictions placed upon us by our borrowing arrangements as well as financial and other conditions existing at the time. We use cash flow generated from operating and financing activities to fund our dividends.
We paid the following dividends during the first quarters of 2025 and 2024:
Ordinary Dividends Total Paid
(per share) (in millions)
2025
First Quarter $ 0.20  $ 43 

2024
First Quarter $ 0.20  $ 45 

In May 2025, we declared our second quarter 2025 ordinary dividend of $0.20 per share payable on June 20, 2025 to shareholders of record at the close of business on June 6, 2025.
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Long-term Debt and Borrowing Facility
The following table provides our outstanding Long-term Debt balances, net of unamortized debt issuance costs and discounts, as of May 3, 2025, February 1, 2025 and May 4, 2024:

May 3,
2025 February 1,
2025 May 4,
2024
(in millions)
Senior Debt with Subsidiary Guarantee
$500 million, 9.375% Fixed Interest Rate Notes due July 2025 (“2025 Notes”)
$ —  $ —  $ 313 
$284 million, 6.694% Fixed Interest Rate Notes due January 2027 (“2027 Notes”)
277  277  287 
$444 million, 5.250% Fixed Interest Rate Notes due February 2028 (“2028 Notes”)
443  443  450 
$482 million, 7.500% Fixed Interest Rate Notes due June 2029 (“2029 Notes”)
476  476  485 
$844 million, 6.625% Fixed Interest Rate Notes due October 2030 (“2030 Notes”)
839  838  893 
$802 million, 6.875% Fixed Interest Rate Notes due November 2035 (“2035 Notes”)
797  796  800 
$575 million, 6.750% Fixed Interest Rate Notes due July 2036 (“2036 Notes”)
571  571  571 
Total Senior Debt with Subsidiary Guarantee 3,403  3,401  3,799 
Senior Debt
$284 million, 6.950% Fixed Interest Rate Debentures due March 2033 (“2033 Notes”)
283  283  283 
$201 million, 7.600% Fixed Interest Rate Notes due July 2037 (“2037 Notes”)
200  200  200 
Total Senior Debt 483  483  483 
Total Long-term Debt $ 3,886  $ 3,884  $ 4,282 

Repurchases of Notes
We did not repurchase any outstanding senior notes during the first quarter of 2025.
During the first quarter of 2024, we repurchased in the open market and extinguished $109 million principal amount of our outstanding senior notes. The aggregate repurchase price for these notes was $110 million, resulting in a pre-tax loss of $1 million, including the write-off of unamortized issuance costs. This loss is included in Other Income, Net in the first quarter of 2024 Consolidated Statement of Income.
The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the first quarter of and the full year 2024:

First Quarter Full Year

(in millions)
2025 Notes $ —  $ 314 
2027 Notes —  14 
2028 Notes 10  17 
2029 Notes 7  17 
2030 Notes 38  94 
2033 Notes 10  10 
2035 Notes 6  10 
2036 Notes 38  38 

Total $ 109  $ 514 

Asset-backed Revolving Credit Facility
We and certain of our 100% owned subsidiaries guarantee and pledge collateral to secure the ABL Facility. The ABL Facility, which allows borrowings and letters of credit in U.S. dollars, has aggregate commitments of $750 million and, as of May 3, 2025, had an expiration date in August 2026.
Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on our eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, we are required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of May 3, 2025, our borrowing base was $639 million, and we had no borrowings outstanding under the ABL Facility.
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The ABL Facility supports our letter of credit program. We had $11 million of outstanding letters of credit as of May 3, 2025 that reduced our availability under the ABL Facility. As of May 3, 2025, our availability under the ABL Facility was $628 million.
As of May 3, 2025, the ABL Facility fees related to committed and unutilized amounts were 0.30% per annum, and the fees related to outstanding letters of credit were 1.25% per annum. In addition, the interest rate on outstanding U.S. dollar borrowings was the Term Secured Overnight Financing Rate plus 1.25% and a credit spread adjustment of 0.10% per annum.
The ABL Facility requires us to maintain a fixed charge coverage ratio of not less than 1.00 to 1.00 during an event of default or any period commencing on any day when specified excess availability is less than the greater of (i) $70 million or (ii) 10% of the maximum borrowing amount. As of May 3, 2025, we were not required to maintain this ratio.
Subsequent to May 3, 2025, we entered into an amendment and restatement of the ABL Facility, which removed the interest rate credit spread adjustment of 0.10%, extended the expiration date from August 2026 to May 2030 and included other technical amendments.
Credit Ratings
The following table provides our credit ratings as of May 3, 2025:

  Moody’s S&P
Corporate Ba2 BB+
Senior Unsecured Debt with Subsidiary Guarantee Ba2 BB+
Senior Unsecured Debt B1 BB-
Outlook Stable Stable

Guarantor Summarized Financial Information
Certain of our subsidiaries, which are listed on Exhibit 22 to this Quarterly Report on Form 10-Q, have guaranteed our obligations under the 2027 Notes, 2028 Notes, 2029 Notes, 2030 Notes, 2035 Notes and 2036 Notes (collectively, the “Notes”).
The Notes have been issued by Bath & Body Works, Inc. (the “Parent Company”). The Notes are its senior unsecured obligations and rank equally in right of payment with all of our existing and future senior unsecured obligations, are senior to any of our future subordinated indebtedness, are effectively subordinated to all of our existing and future indebtedness that is secured by a lien and are structurally subordinated to all existing and future obligations of each of our subsidiaries that do not guarantee the Notes.
The Notes are fully and unconditionally guaranteed on a joint and several basis by certain of our wholly-owned subsidiaries, including certain subsidiaries that also guarantee our obligations under our ABL Facility (such guarantees, the “Guarantees”; and, such guaranteeing subsidiaries, the “Subsidiary Guarantors”). The Guarantees of the Subsidiary Guarantors are subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each Guarantee is limited, by its terms, to an amount not to exceed the maximum amount that can be guaranteed by the applicable Subsidiary Guarantor subject to avoidance under applicable fraudulent conveyance provisions of U.S. and non-U.S. law.
The following tables set forth summarized financial information for the Parent Company and the Subsidiary Guarantors on a combined basis after elimination of (i) intercompany transactions and balances among the Parent Company and the Subsidiary Guarantors and (ii) investments in and equity in the earnings of non-Guarantor subsidiaries.

SUMMARIZED BALANCE SHEETS May 3,
2025 February 1,
2025
(in millions)
ASSETS
Current Assets (a) $ 2,069  $ 2,075 
Noncurrent Assets 2,418  2,411 

LIABILITIES
Current Liabilities (b) $ 2,469  $ 2,394 
Noncurrent Liabilities 4,909  4,898 

 _______________
(a) Includes amounts due from non-Guarantor subsidiaries of $583 million and $572 million as of May 3, 2025 and February 1, 2025, respectively.
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(b) Includes amounts due to non-Guarantor subsidiaries of $1.417 billion and $1.421 billion as of May 3, 2025 and February 1, 2025, respectively.

FIRST QUARTER OF 2025 SUMMARIZED STATEMENT OF INCOME
(in millions)
Net Sales (a) $ 1,355 
Gross Profit 602 
Operating Income 193 
Income Before Income Taxes 128 
Net Income 91 

 _______________
(a) Includes Net Sales of $34 million to non-Guarantor subsidiaries.

Contingent Liabilities and Contractual Obligations
Lease Guarantees
In connection with the spin-off of Victoria’s Secret & Co., we had remaining contingent obligations of $227 million as of May 3, 2025 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the spin-off. Our reserves related to these obligations were not significant for any period presented.
Contractual Obligations
Our contractual obligations primarily consist of long-term debt and the related interest payments, operating leases, purchase orders for merchandise inventory and other long-term obligations. These contractual obligations impact our short-term and long-term liquidity and capital resource needs. There have been no material changes in our contractual obligations subsequent to February 1, 2025, as discussed in “Contingent Liabilities and Contractual Obligations” in our 2024 Annual Report on Form 10-K. Certain of our contractual obligations may fluctuate during the normal course of business (primarily changes in our merchandise inventory-related purchase obligations which fluctuate throughout the year as a result of the seasonal nature of our business).

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures , that requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this standard on our disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , that requires disclosures of disaggregated information about certain prescribed expense categories within relevant income statement expense captions. This standard is effective for annual reporting of fiscal years beginning after December 15, 2026, and for interim periods in the following year, with early adoption permitted. This standard should be applied prospectively, with retrospective application permitted. We are currently evaluating the impact of adopting this standard on our disclosures.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies related to estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. On an ongoing basis, management evaluates its accounting policies, estimates and judgments, including those related to inventories, valuation of long-lived store assets, claims and contingencies, income taxes and revenue recognition, including revenue associated with our loyalty program. Management bases our estimates and judgments on historical experience and various other factors that we believe are reasonable under the circumstances. Actual results may differ from these estimates.
There have been no material changes to the critical accounting policies and estimates disclosed in our 2024 Annual Report on Form 10-K.
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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Market Risk
The market risk inherent in our financial instruments represents the potential loss in fair value, earnings or cash flows arising from adverse changes in foreign currency exchange rates or interest rates. We may use derivative financial instruments like foreign currency forward contracts, cross-currency swaps and interest rate swap arrangements to manage exposure to market risks. We do not use derivative financial instruments for trading purposes.
Foreign Exchange Rate Risk
Our Canadian dollar denominated earnings are subject to exchange rate risk as substantially all our merchandise sold in Canada is sourced through U.S. dollar transactions. Although we utilize foreign currency forward contracts to partially offset risks associated with our operations in Canada, these measures may not succeed in offsetting all the short-term impact of foreign currency rate movements and generally may not be effective in offsetting the long-term impact of sustained shifts in foreign currency rates.
Further, although our royalty arrangements with our international partners are denominated in U.S. dollars, the royalties we receive in U.S. dollars are calculated based on sales in the local currency. As a result, our royalties in these arrangements are exposed to foreign currency exchange rate fluctuations.
Interest Rate Risk
Our investment portfolio primarily consists of interest-bearing instruments that are classified as cash and cash equivalents based on their original maturities. Our investment portfolio is maintained in accordance with our investment policy, which specifies permitted types of investments, specifies credit quality standards and maturity profiles and limits credit exposure to any single issuer. The primary objectives of our investment activities are the preservation of principal, the maintenance of liquidity and the maximization of interest income while minimizing risk. Our investment portfolio is primarily composed of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits. Given the short-term nature and quality of investments in our portfolio, we do not believe there is any material risk to principal associated with increases or decreases in interest rates.
All of our outstanding Long-term Debt as of May 3, 2025 has fixed interest rates. We will from time to time adjust our exposure to interest rate risk by entering into interest rate swap arrangements. Our exposure to interest rate changes is limited to the fair value of the debt issued, which would not have a material impact on our earnings or cash flows.
Concentration of Credit Risk
We maintain cash and cash equivalents and derivative contracts with various major financial institutions. We monitor the relative credit standing of financial institutions with whom we transact and limit the amount of credit exposure with any one entity. Our investment portfolio is primarily composed of U.S. government obligations, U.S. Treasury and AAA-rated money market funds, commercial paper and bank deposits. We also periodically review the relative credit standing of franchise, license and wholesale partners and other entities to which we grant credit terms in the normal course of business.
Fair Value Measurements
The following table provides a summary of the principal value and estimated fair value of our outstanding Long-term debt as of May 3, 2025, February 1, 2025 and May 4, 2024:
May 3,
2025 February 1,
2025 May 4,
2024
(in millions)
Principal Value $ 3,916  $ 3,916  $ 4,321 
Fair Value, Estimated (a) 3,957  3,986  4,351 
 _______________
(a)    The estimated fair values are based on reported transaction prices and are not necessarily indicative of the amounts that we could realize in a current market exchange.
As of May 3, 2025, we believe that the carrying values of our Accounts Receivable, Accounts Payable and Accrued Expenses approximate their fair values because of their short maturities.
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Item 4. CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of the end of the period covered by this report, our disclosure controls and procedures were effective and designed to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission (“SEC”) rules and forms, and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Changes in internal control over financial reporting. During the first quarter of 2025, we transitioned to new real-estate management systems to enhance operational efficiency in our lease administration and compliance with lease accounting and reporting standards. We updated our processes to align with the functionality of the new systems and ensured that adequate controls were designed and operating effectively throughout the transition process.
There were no other changes in our internal control over financial reporting that occurred in the first quarter of 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS
We are a defendant in a variety of lawsuits arising in the ordinary course of business. Actions filed against the Company from time to time may include commercial, tort, intellectual property, tax, customer, employment, wage and hour, data privacy, securities, anti-corruption and other claims, including purported class action lawsuits. Although it is not possible to predict with certainty the eventual outcome of any litigation, in the opinion of management, our current legal proceedings are not expected to have a material adverse effect on our results of operations, financial condition or cash flows.

Item 1A. RISK FACTORS
The risk factors that affect our business and financial results are discussed in Item 1A. Risk Factors in our 2024 Annual Report on Form 10-K. We wish to caution the reader that the risk factors discussed in Item 1A. Risk Factors in our 2024 Annual Report on Form 10-K and those described elsewhere in this report or other SEC filings could cause actual results to differ materially from those stated in any forward-looking statements.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table provides the repurchases of our common stock during the first quarter of 2025:

Fiscal Period Total
Number of
Shares
Purchased (a) Average Price
Paid per
Share (b) Total Number of Shares Purchased as Part of Publicly Announced Programs (c) Maximum Number of Shares (or Approximate Dollar Value) that May Yet be Purchased Under the Programs (c)
  (in thousands)   (in thousands)
February 2025 776  $ 37.19  773  $ 488,593 
March 2025 2,157  31.40  2,022  424,910 
April 2025 1,535  27.89  1,531  382,201 
Total 4,468  4,326 
 _______________
(a) The total number of shares repurchased includes shares repurchased as part of publicly announced programs, with the remainder relating to shares in connection with tax payments due upon vesting of associate restricted share and performance share unit awards and the use of our stock to pay the exercise price on associate stock options.
(b) The average price paid per share includes any broker commissions.
(c) For additional share repurchase program information, see Note 3, “Net Income Per Share and Shareholders’ Equity (Deficit)” included in Part I, Item 1. Financial Statements.

Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.

Item 4. MINE SAFETY DISCLOSURES
Not applicable.

Item 5. OTHER INFORMATION
Securities Trading Plans of Directors and Executive Officers
None of our directors or executive officers adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (as such terms are defined in Item 408(c) of Regulation S-K) during the first quarter of 2025.
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Item 6. EXHIBITS

Exhibits    

10.1
Letter Agreement between the Company and Deon Riley , dated February 24 , 202 5 .

10.2
Offer Letter between the Company and Daniel Heaf, dated as of May 16, 2025.

10.3
Executive Severance Agreement between the Company and Daniel Heaf, dated as of May 16, 2025.

10.4
Second Amended and Restated Revolving Credit Agreement by and among Bath & Body Works , Inc. and JPMorgan Chase Bank, N.A., dated May 22, 2025, incorporated by reference to Exhibit 10.1 to the Company's Form 8-K dated May 22, 2025.

15
Letter regarding Unaudited Interim Financial Information regarding Incorporation of Report of Independent Registered Public Accounting Firm.

22
List of Guarantor Subsidiaries.

31.1
Section 302 Certification of CEO.

31.2
Section 302 Certification of CFO.

32
Section 906 Certification (by CEO and CFO).

101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF Inline XBRL Taxonomy Definition Linkbase Document.

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.  

BATH & BODY WORKS, INC.

(Registrant)
By: /s/ EVA C. BORATTO
  Eva C. Boratto
Chief Financial Officer *

Date: May 29, 2025
*    Ms. Boratto is the principal financial officer and the principal accounting officer and has been duly authorized to sign on behalf of the Registrant.

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