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BBWI's International Business Emerges as Key Growth Driver
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Key Takeaways
BBWI posted 9% growth in international and other net sales to $70 million in Q1'26.
BBWI ended Q1 with 579 partner-operated international stores after eight net additions.
BBWI expects low-double-digit international retail sales growth for Q2.
Bath & Body Works, Inc. (BBWI - Free Report) continues to gain traction internationally, with its global business emerging as an increasingly important contributor to long-term growth. As the company executes its Consumer First Formula strategy, international markets are providing a valuable avenue for expansion, supported by strong brand recognition, growing consumer demand and a scalable franchise model.
The company delivered another solid quarter internationally in first-quarter fiscal 2026. International and other net sales increased 9% year over year to $70 million, while international net sales rose 5%. More notably, system-wide international retail sales climbed 11%, highlighting healthy demand across global markets despite ongoing macroeconomic challenges in certain regions. The performance reinforces the growing relevance of Bath & Body Works outside its core North American business.
The expansion of the company’s international footprint remains a key growth driver. Bath & Body Works ended the quarter with 579 partner-operated international stores, adding eight net new locations during the period. The company’s asset-light franchise model enables rapid expansion with limited capital investment, allowing it to generate attractive returns while leveraging local market expertise and established retail partners.
Management continues to view international markets as a compelling long-term opportunity. Compared with its extensive North American presence, Bath & Body Works remains relatively underpenetrated globally, creating significant runway for store expansion, royalty growth and market share gains. The strength of the brand’s fragrance and personal care portfolio further supports its ability to attract consumers across diverse geographies.
Management expects international retail sales to increase in the low-double-digit rate in the fiscal second quarter, reflecting continued momentum. With expanding global reach, strong franchise partnerships and rising consumer awareness, the international business is poised to play an increasingly meaningful role in Bath & Body Works’ long-term growth story.
BBWI’s Price Performance, Valuation & Estimates
Shares of Bath & Body Works have inched up 0.9% in the past six months against the industry’s decline of 17.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, BBWI trades at a forward price-to-earnings ratio of 7.15X, down from the industry’s average of 14.66X. 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 18.4%, whereas the same for fiscal 2027 indicates an uptick of 10.9%. Earnings estimates for fiscal 2026 and 2027 have been revised upward by 2 cents and 3 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
BBWI currently carries a Zacks Rank #3 (Hold).
Key Picks
We have highlighted three better-ranked stocks in the retail space, namely, Genesco Inc. (GCO - Free Report) , Tapestry, Inc. (TPR - Free Report) and Fossil Group, Inc. (FOSL - Free Report) .
Genesco is a specialty retail and branded company that sells footwear and accessories in retail stores. The company 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 Genesco’s current fiscal-year earnings implies growth of 55.2% from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Tapestry offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. It currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales suggests growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Fossil Group is involved in designing, marketing and distributing consumer fashion accessories. The company has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Fossil Group’s current financial-year earnings and sales indicates growth of 87.6% and a decline of 4.9%, respectively, from the year-ago actuals.
View the Zacks #1 Rank List
Image: Bigstock
BBWI's International Business Emerges as Key Growth Driver
Key Takeaways
Bath & Body Works, Inc. (BBWI - Free Report) continues to gain traction internationally, with its global business emerging as an increasingly important contributor to long-term growth. As the company executes its Consumer First Formula strategy, international markets are providing a valuable avenue for expansion, supported by strong brand recognition, growing consumer demand and a scalable franchise model.
The company delivered another solid quarter internationally in first-quarter fiscal 2026. International and other net sales increased 9% year over year to $70 million, while international net sales rose 5%. More notably, system-wide international retail sales climbed 11%, highlighting healthy demand across global markets despite ongoing macroeconomic challenges in certain regions. The performance reinforces the growing relevance of Bath & Body Works outside its core North American business.
The expansion of the company’s international footprint remains a key growth driver. Bath & Body Works ended the quarter with 579 partner-operated international stores, adding eight net new locations during the period. The company’s asset-light franchise model enables rapid expansion with limited capital investment, allowing it to generate attractive returns while leveraging local market expertise and established retail partners.
Management continues to view international markets as a compelling long-term opportunity. Compared with its extensive North American presence, Bath & Body Works remains relatively underpenetrated globally, creating significant runway for store expansion, royalty growth and market share gains. The strength of the brand’s fragrance and personal care portfolio further supports its ability to attract consumers across diverse geographies.
Management expects international retail sales to increase in the low-double-digit rate in the fiscal second quarter, reflecting continued momentum. With expanding global reach, strong franchise partnerships and rising consumer awareness, the international business is poised to play an increasingly meaningful role in Bath & Body Works’ long-term growth story.
BBWI’s Price Performance, Valuation & Estimates
Shares of Bath & Body Works have inched up 0.9% in the past six months against the industry’s decline of 17.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, BBWI trades at a forward price-to-earnings ratio of 7.15X, down from the industry’s average of 14.66X. 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 18.4%, whereas the same for fiscal 2027 indicates an uptick of 10.9%. Earnings estimates for fiscal 2026 and 2027 have been revised upward by 2 cents and 3 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
BBWI currently carries a Zacks Rank #3 (Hold).
Key Picks
We have highlighted three better-ranked stocks in the retail space, namely, Genesco Inc. (GCO - Free Report) , Tapestry, Inc. (TPR - Free Report) and Fossil Group, Inc. (FOSL - Free Report) .
Genesco is a specialty retail and branded company that sells footwear and accessories in retail stores. The company 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 Genesco’s current fiscal-year earnings implies growth of 55.2% from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.
Tapestry offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. It currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales suggests growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Fossil Group is involved in designing, marketing and distributing consumer fashion accessories. The company has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Fossil Group’s current financial-year earnings and sales indicates growth of 87.6% and a decline of 4.9%, respectively, from the year-ago actuals.