Bath & Body WorksWBO:LBRA +5.55%62 Operating Margin % is 16.76% as of Apr. 2026, which is 3% below its 10-year median of 17.32. GuruFocus rates WBO:LBRA with a GF Score™ of 62/100 and a GF Value™ of €29.07 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Bath & Body Works ranks better than 90.43% on this metric.
Bath & Body Works Inc operating margin has been in a 5-year decline. The average rate of decline per year is -9.8%.
The historical rank and industry rank for Bath & Body Works's Operating Margin % or its related term are showing as below:
WBO:LBRA'
s Operating Margin % Range Over the Past 10 Years
Min: 10.09 Med: 17.32 Max: 25.49
Current: 15.85
WBO:LBRA's Operating Margin % is ranked better than 90.43% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs WBO:LBRA: 15.85
Bath & Body Works's 5-Year Average Operating Margin % Growth Rate was -9.80% per year.
Bath & Body Works (WBO:LBRA) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Bath & Body Works Operating Margin % Historical Data
* Premium members only.
The historical data trend for Bath & Body Works's Operating Margin % 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.
WBO:LBRA vs MNSO, ASO, RH: Operating Margin % Comparison
For the Specialty Retail subindustry, Bath & Body Works's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bath & Body Works Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Bath & Body Works's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Bath & Body Works's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Bath & Body Works's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as
* 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.
Bath & Body Works (WBO:LBRA) has a Operating Margin % of 16.76% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Bath & Body Works and its competitors. This is near median its historical median of 17.32. Over the past decade, Bath & Body Works' Operating Margin % has ranged from 10.09 to 25.49. According to the industry distribution chart, Bath & Body Works ranks #108 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 9.6%.
Is Bath & Body Works' Operating Margin % too high?
Bath & Body Works' current Operating Margin % of 16.76% is near median its 10-year median of 17.32. Over the past 10 years, this metric has ranged from a low of 10.09 to a high of 25.49. The Retail - Cyclical industry median Operating Margin % is 3.91. Bath & Body Works' value of 16.76% is 329.2% above this industry median. Based on the distribution chart, Bath & Body Works ranks #108 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Bath & Body Works has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bath & Body Works' Operating Margin % compare to MNSO and ASO?
According to the Retail - Cyclical industry distribution chart, Bath & Body Works ranks #108 out of 1128 companies for Operating Margin %. This places Bath & Body Works in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Bath & Body Works' value of 16.76% is 329.2% above this benchmark. Historically, Bath & Body Works' own Operating Margin % has ranged from 10.09 to 25.49 over the past decade. While the company's 10-year median is 17.32 vs. the industry median of 3.91, Bath & Body Works has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bath & Body Works's current Operating Margin % of 16.76% is 329.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Bath & Body Works and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bath & Body Works's current Operating Margin % is 16.76%, which is near median its own 10-year median of 17.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bath & Body Works stock overvalued right now?
Based on GuruFocus' analysis, Bath & Body Works (WBO:LBRA) is currently considered Significantly Undervalued. The stock's GF Value™ is €29.07, compared to a current price of €18.06 — trading 37.9% below its estimated fair value. The current Operating Margin % is 16.76%, which is near median its 10-year median of 17.32 and 329.2% above the Retail - Cyclical industry median of 3.91. Bath & Body Works' overall GF Score™ is 62/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Bath & Body Works (WBO:LBRA), the current Operating Margin % is 16.76% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bath & Body Works (WBO:LBRA) Overvalued in 2026?
Based on GuruFocus' analysis, Bath & Body Works stock appears to be undervalued.
The current stock price of €18.06 is trading 37.9% below its estimated GF Value™ of €29.07.
GuruFocus considers Bath & Body Works to be Significantly Undervalued.
Key valuation signals for WBO:LBRA:
Operating Margin %: 16.76% (near median its 10-year median of 17.32)
GF Value™: €29.07 vs. price of €18.06 (37.9% below fair value)
Industry Position: 329.2% above the Retail - Cyclical median (#108 of 1128)
No single metric tells the full story. See the WBO:LBRA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 4% of sales from international markets in fiscal 2025. For fiscal 2025, 77% of sales stemmed from the brick-and-mortar network of more than 1,900 retail stores, similar to 2024 levels, as consumer shopping patterns remained normal. Future growth is expected from store upgrades, digital and international channels, as well as adjacent category expansions like men's and lip.
62GF Score
Get the complete analysis for WBO:LBRA
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WBO:LBRA has been successfully added to your 
