
Bath & Body Works stock surges 7.5% after a Q2 earnings beat, stronger direct sales and a higher FY'26 outlook signal improving momentum.
Bath & Body Works Inc. (BBWI) is a leading specialty retailer distinguished by its extensive range of premium personal care and home fragrance products. With a strong omnichannel strategy that seamlessly merges its expansive retail footprint with a vibrant e-commerce platform, the company prioritizes customer accessibility and engagement. As a subsidiary of L Brands, Inc., BBWI benefits from operational synergies while fostering innovation in product offerings to align with evolving consumer preferences. The company is dedicated to sustainability and community stewardship, positioning itself for long-term growth and competitive resilience in the dynamic beauty and personal care market.
| Revenue (TTM) | $7.21B |
| Gross Profit (TTM) | $3.10B |
| EBITDA | $1.32B |
| Operating Margin | 9.58% |
| Return on Equity | 0.00% |
| Return on Assets | 13.40% |
| Revenue/Share (TTM) | $35.60 |
| Book Value | $-5.23 |
| Price-to-Book | 1403.38 |
| Price-to-Sales (TTM) | 0.55 |
| EV/Revenue | 1.066 |
| EV/EBITDA | 5.17 |
| Quarterly Earnings Growth (YoY) | 93.30% |
| Quarterly Revenue Growth (YoY) | -2.30% |
| Shares Outstanding | $201.65M |
| Float | $200.75M |
| % Insiders | 0.53% |
| % Institutions | 105.90% |
Volatility is currently expanding

Bath & Body Works stock surges 7.5% after a Q2 earnings beat, stronger direct sales and a higher FY'26 outlook signal improving momentum.

Bath & Body Works, Inc. reported volatile Q2 earnings. Weak store sales continue to pressure the company's earnings power. There were positive signals in BBWI's results as well. Ecommerce sales improved, international & wholesale revenues grew very well, and the FY2026 guidance was raised slightly. Market expectations have been set at an overly pessimistic level. I estimate BBWI stock to have 54% upside to $29.10.

Although the revenue and EPS for Bath & Body Works (BBWI) give a sense of how its business performed in the quarter ended July 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Bath & Body Works, Inc. remains a Strong Buy, with valuation deeply discounted despite improving fundamentals and robust cash flow. Q2 saw adjusted EPS up 67.6% and guidance raised, with management targeting $650 million in free cash flow and $250 million in cost savings. BBWI's balance sheet is strengthening through debt repayments and cash generation, positioning it for future buybacks and further expansion.

Bath & Body Works, Inc. (BBWI) Q2 2027 Earnings Call Transcript

Any Q2 retail EPS comparison that ignores tariff refunds is measuring the refund, not the business.

Bath & Body Works NYSE: BBWI reported second-quarter results that exceeded its prior outlook, though sales remained under pressure as the retailer invests in product innovation, marketing, digital capabilities and expanded distribution to support a planned return to revenue growth in 2027.

Bath & Body Works Inc (NYSE:BBWI) on Wednesday reported second quarter fiscal 2026 results above expectations, while the company also raised its full-year adjusted earnings outlook. The retailer reported net sales of $1.51 billion for the quarter ended August 1, down 2.3% from $1.55 billion a year earlier and slightly above analyst expectations of approximately $1.50 billion.

Bath & Body Works (BBWI) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.37 per share a year ago.

The soaps and fragrances retailer said it now expects annual adjusted earnings per share to be $2.60 to $2.80, up from prior guidance of $2.40 and $2.65.
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