Macy's vs Bath & Body Works

This page compares Macy's, Inc. and Bath & Body Works Inc., examining how their business models, financial performance, and market context differ. It presents core strategies, revenue approaches, store formats, and brand positioning in a neutral, accessible overview. Educational content, not financial advice.

This page compares Macy's, Inc. and Bath & Body Works Inc., examining how their business models, financial performance, and market context differ. It presents core strategies, revenue approaches, stor...

Comparison Snapshot

Key Financial Metrics

M

Metric

BBWI

$5.66B

Market Cap

$4.43B

-3.47%

Potential Profit

0.82%

Hold

Analyst Rating

Hold

Investment Analysis

Macy's

M

Pros

Macy's maintains a strong gross margin of around 40.4%, reflecting efficient cost management.
The company shows solid liquidity with a current ratio of 1.4, indicating the ability to cover short-term obligations.
Macy's price-to-book ratio of approximately 0.81 suggests potential undervaluation compared to industry peers.

Considerations

Revenue declined by 3.6% in 2024, signaling challenges in top-line growth.
Analysts hold a cautious 'Hold' consensus with average price targets implying a downside of about 22-24%.
The debt-to-equity ratio of 0.62 indicates moderate leverage, potentially raising financial risk amidst market uncertainties.

Bath & Body Works

BBWI

Pros

Bath & Body Works posted $7.4 billion in revenue in 2023, reflecting sizable market presence.
The company pays a dividend yield around 3.0%, offering income potential to investors.
Recent sales met Wall Street's expectations with Q2 2025 revenue growth of 1.5% year-over-year.

Considerations

Net income declined almost 11% recently, with deteriorating free cash flow and cash from operations.
Returns on capital are decreasing, and its quality metrics fall below investment-grade standards, raising concerns over profitability sustainability.
The stock trades at a low forward P/E near 6.7x, which may indicate valuation concerns linked to underlying growth or margin pressures.

About The Companies

Macy's (M)

Macy's, Inc. (ticker M) is a legacy department‑store operator that runs several retail banners and an expanding online business. Investors should know it combines a sizeable physical footprint of flagship stores with investments in e‑commerce, loyalty programmes and off‑price formats to steady revenue. At a market capitalisation near $4.9 billion, Macy's is sensitive to consumer spending cycles, discretionary income trends and competition from online and discount retailers. Balance‑sheet strength, store rationalisation, and management's margin initiatives can influence returns, but retail earnings are often cyclical and revenue can be volatile. This summary is educational only — not personalised advice — and values can fall as well as rise. Before deciding, review up‑to‑date financial reports, recent company announcements and consider how this stock would fit your risk tolerance and time horizon.

Bath & Body Works (BBWI)

Bath & Body Works, Inc. is a global retailer specialising in personal care and home fragrance products. It operates as an 'omnichannel' business, meaning it reaches customers through various connected channels, including over 1,890 of its own retail stores in the US and Canada, a popular e-commerce website, and options like 'buy online, pick-up in-store'. The company's product range is extensive, featuring well-known collections of 3-wick candles, hand soaps, and body lotions under brands like Bath & Body Works and White Barn. Beyond its core North American market, the brand has a growing international presence, with over 525 franchised locations across the globe. This strategy allows the company to cater to a broad customer base with its distinctive fragrances for both body and home. As with any investment, it's important to remember that a company's past performance doesn't guarantee future results.

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Which Baskets Do They Appear In?

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U.S. retail sales have exceeded expectations for the third straight month, signaling robust consumer health. This theme focuses on companies poised to benefit from sustained consumer spending, particularly in strong-performing sectors like online retail and food services.

Published: September 17, 2025

Explore Basket

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Recent data shows jobless claims have fallen for six consecutive weeks, signaling a resilient labor market. This trend suggests continued economic stability and creates potential opportunities in companies that benefit from strong consumer spending.

Published: July 27, 2025

Explore Basket

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These companies are led by elite CEOs with impressive track records of rescuing struggling businesses. Our analysts have carefully selected these stocks based on leadership that has the potential to engineer dramatic corporate revivals and create significant investor value.

Published: June 17, 2025

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Comparison Snapshot