Bath & Body Works beats Q1 earnings but revenue falls for 5th year; turnaround efforts underway.

Bath & Body Works reported better-than-expected earnings and revenue for the first quarter, though both figures declined compared to the same period last year. The company has faced declining revenue for five consecutive years and pressure on its gross margin. Management is optimistic about returning to revenue growth through ongoing turnaround initiatives. Over the past five years, Bath & Body Works has paid off $2.8 billion in debt, including $289 million this quarter, reducing net debt to $2.79 billion. A discounted cash flow analysis suggests the stock is undervalued by about 90%, reflecting market concerns already priced in.