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BBWI's International Momentum Signals Strong Global Growth Potential
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Key Takeaways
BBWI's international net sales rose 8.6% in Q4, with all regions contributing to growth.
Partner-operated stores reached 573 locations, with at least 60 net new openings planned.
International retail sales neared $1 billion, supporting BBWI's broader global expansion strategy.
Bath & Body Works, Inc.’s (BBWI - Free Report) international business is emerging as a key pillar of its long-term growth strategy, supported by strong partner execution and rising global demand. Despite broader macro pressures, the company delivered solid international performance in the fourth quarter of fiscal 2025, highlighting resilience outside its core North American market.
International net sales rose 8.6% year over year in the fiscal fourth quarter, while system-wide retail sales grew 13%, signaling healthy consumer traction across geographies. Importantly, growth was broad-based, with all regions contributing positively. This performance reflects both improving demand trends and effective inventory management by franchise partners, who entered the year in a strong position.
The company’s asset-light international model continues to scale efficiently. Partner-operated stores are accelerating expansion across both existing and new markets, including key geographies, such as Germany and Brazil. This expansion underscores confidence in the brand’s global appeal and provides BBWI with a capital-efficient pathway to increase its international footprint without significant balance sheet pressure.
Store growth remains a critical driver. BBWI ended fiscal 2026 with 573 international locations, with partners adding a net 44 stores during the year and planning further acceleration. Management expects at least 60 net new international store openings, reinforcing momentum and improving brand accessibility in high-growth markets.
Looking ahead, BBWI expects international net sales to grow at a mid to high-single-digit rate, supported by continued geographic diversification and strong consumer demographics. With international revenues approaching $1 billion in retail sales, the segment is increasingly meaningful, positioning BBWI to evolve from a U.S.-centric retailer into a more balanced global fragrance and body care brand.
BBWI’s Price Performance, Valuation & Estimates
Shares of Bath & Body Works have lost 28.1% in the past six months compared with the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, BBWI trades at a forward price-to-earnings ratio of 6.90X, down from the industry’s average of 17.02X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Bath & Body Works’ fiscal 2026 earnings implies a year-over-year decline of 19%, whereas the same for fiscal 2027 indicates an uptick of 10.5%. Earnings estimates for fiscal 2026 and 2027 have been unchanged in the past 30 days.
The Zacks Consensus Estimate for FIGS’ current financial-year sales and earnings indicates growth of 11.7% and 15.8%, respectively, from the year-ago reported numbers. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales implies growth of 8.6% and 4.3%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.4%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Allbirds’ 2026 sales implies growth of 0.9% from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 15.4%.
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BBWI's International Momentum Signals Strong Global Growth Potential
Key Takeaways
Bath & Body Works, Inc.’s (BBWI - Free Report) international business is emerging as a key pillar of its long-term growth strategy, supported by strong partner execution and rising global demand. Despite broader macro pressures, the company delivered solid international performance in the fourth quarter of fiscal 2025, highlighting resilience outside its core North American market.
International net sales rose 8.6% year over year in the fiscal fourth quarter, while system-wide retail sales grew 13%, signaling healthy consumer traction across geographies. Importantly, growth was broad-based, with all regions contributing positively. This performance reflects both improving demand trends and effective inventory management by franchise partners, who entered the year in a strong position.
The company’s asset-light international model continues to scale efficiently. Partner-operated stores are accelerating expansion across both existing and new markets, including key geographies, such as Germany and Brazil. This expansion underscores confidence in the brand’s global appeal and provides BBWI with a capital-efficient pathway to increase its international footprint without significant balance sheet pressure.
Store growth remains a critical driver. BBWI ended fiscal 2026 with 573 international locations, with partners adding a net 44 stores during the year and planning further acceleration. Management expects at least 60 net new international store openings, reinforcing momentum and improving brand accessibility in high-growth markets.
Looking ahead, BBWI expects international net sales to grow at a mid to high-single-digit rate, supported by continued geographic diversification and strong consumer demographics. With international revenues approaching $1 billion in retail sales, the segment is increasingly meaningful, positioning BBWI to evolve from a U.S.-centric retailer into a more balanced global fragrance and body care brand.
BBWI’s Price Performance, Valuation & Estimates
Shares of Bath & Body Works have lost 28.1% in the past six months compared with the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, BBWI trades at a forward price-to-earnings ratio of 6.90X, down from the industry’s average of 17.02X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Bath & Body Works’ fiscal 2026 earnings implies a year-over-year decline of 19%, whereas the same for fiscal 2027 indicates an uptick of 10.5%. Earnings estimates for fiscal 2026 and 2027 have been unchanged in the past 30 days.
Image Source: Zacks Investment Research
BBWI currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the retail space are FIGS Inc. (FIGS - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Allbirds Inc. (BIRD - Free Report) .
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales and earnings indicates growth of 11.7% and 15.8%, respectively, from the year-ago reported numbers. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current fiscal-year earnings and sales implies growth of 8.6% and 4.3%, respectively, from the year-ago actuals. ANF delivered a trailing four-quarter average earnings surprise of 8.4%.
Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It currently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Allbirds’ 2026 sales implies growth of 0.9% from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 15.4%.