Bath & Body Works (LTS:0JSC) Operating Income : $1,284 Mil (TTM As of Oct. 2024)

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What is Bath & Body Works Operating Income?

Bath & Body Works's Operating Income for the three months ended in Oct. 2024 was $218 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2024 was $1,284 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Bath & Body Works's Operating Income for the three months ended in Oct. 2024 was $218 Mil. Bath & Body Works's Revenue for the three months ended in Oct. 2024 was $1,610 Mil. Therefore, Bath & Body Works's Operating Margin % for the quarter that ended in Oct. 2024 was 13.54%.

Good Sign:

Bath & Body Works Inc operating margin is expanding. Margin expansion is usually a good sign.

Bath & Body Works's 5-Year average Growth Rate for Operating Margin % was 7.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Bath & Body Works's annualized ROC % for the quarter that ended in Oct. 2024 was 16.89%. Bath & Body Works's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2024 was 35.48%.

Bath & Body Works Operating Income Historical Data

The historical data trend for Bath & Body Works's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Bath & Body Works Operating Income Chart

Bath & Body Works Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Operating Income

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1,040.00

1,604.00

2,009.00

1,376.00

1,285.00

Bath & Body Works Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Operating Income	Get a 7-Day Free Trial															221.00	696.00	187.00	183.00	218.00

Bath & Body Works Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Oct. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,284 Mil.

Bath & Body Works (LTS:0JSC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Bath & Body Works's annualized ROC % for the quarter that ended in Oct. 2024 is calculated as:

	ROC % (Q: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2024 )	+	Invested Capital (Q: Oct. 2024 ))	/ count )
=	872 * ( 1 - 26.9% )	/	( (3781	+	3766)	/ 2 )
=	637.432	/	3773.5
=	16.89 %

where

	Invested Capital		(Q: Jul. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4948	-	998	-	( 514	-	max(0, 1497	-	1666	+	514	))
=	3781

	Invested Capital		(Q: Oct. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4984	-	1073	-	( 191	-	max(0, 1575	-	1720	+	191	))
=	3766

Note: The Operating Income data used here is four times the quarterly (Oct. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Bath & Body Works's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Oct. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jul. 2024		Q: Oct. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	888	/	( ( (2209 + max(154, 0))	+	(2187 + max(456, 0)) )	/	2 )
=	888	/	( ( 2363	+	2643 )	/	2 )
=	888	/	2503
=	35.48 %

where Working Capital is:

	Working Capital		(Q: Jul. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(146	+	863	+	143)	-	(998	+	0	+	0)
=	154

	Working Capital		(Q: Oct. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(200	+	1178	+	151)	-	(1073	+	0	+	0)
=	456

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Bath & Body Works's Operating Margin % for the quarter that ended in Oct. 2024 is calculated as:

Operating Margin %	=	Operating Income (Q: Oct. 2024 )	/	Revenue (Q: Oct. 2024 )
	=	218	/	1610
	=	13.54 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Bath & Body Works Operating Income Related Terms

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Bath & Body Works Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Bath & Body Works Inc (LTS:0JSC) » Definitions » Operating Income

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Traded in Other Exchanges

BBWI:USA BBWI:Mexico LTD0:Germany LTD0:Germany B1BW34:Brazil LBRA:Austria

Address

Three Limited Parkway, Columbus, OH, USA, 43230

Website

https://www.bbwinc.com

Bath & Body Works is a specialty home fragrance and fragrant body care retailer operating under the Bath & Body Works, C.O. Bigelow, and White Barn brands. The company generates most of its business in North America, with just 5% of sales from international markets in fiscal 2023. For fiscal 2023, 74% of sales stemmed from the brick-and-mortar network (which was composed of more than 1,800 retail stores), similar to 2022 levels, as consumer shopping patterns remained to normal. Future growth is expected from store reformatting, digital and international channels, as well as adjacent category expansions like hair and laundry.

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