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BBWI's International Momentum Adds Strength to Its Growth Story
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Key Takeaways
BBWI's international net sales rose low double digits in Q2, exceeding management's expectations.
Strong overseas demand and higher product shipments supported Bath & Body Works' international growth.
BBWI expanded its international network to 596 stores and raised its 2026 adjusted EPS outlook.
Bath & Body Works, Inc. (BBWI - Free Report) is gaining support from international markets as it works to restore sustainable growth. Healthy overseas demand, rising product shipments and continued partner expansion are strengthening this business. With North American stores under pressure, international operations offer a valuable source of diversification and a platform for extending the brand’s reach.
That strength was evident in second-quarter fiscal 2026, when international retail sales increased in the high single digits, meeting management’s expectations. International net sales advanced low double digits and exceeded expectations, supported by increased product shipments across regions. These measures reflect consumer demand across partner channels and the company’s sales into its international network.
International and Other sales climbed 24.9% year over year to $108 million. Higher international product sales contributed to the increase, alongside expanded domestic wholesale distribution through Ulta Beauty and Amazon. While this category includes more than overseas operations, its performance highlights the growing contribution from channels beyond BBWI’s traditional North American stores.
The international footprint also continued to expand. Partners opened 17 stores during the second quarter, bringing the network to 596 locations, including 37 travel retail stores. This broader presence creates more opportunities for consumers to discover the brand and provides additional outlets for its personal care and home fragrance products.
For fiscal 2026, BBWI narrowed its sales guidance to a decline of 2.5-4% and raised adjusted earnings expectations to $2.60-$2.80 per share. The outlook reflects second-quarter outperformance and management’s latest business assessment. Sustained overseas demand and continued partner expansion could provide further support as BBWI invests in its transformation and works toward renewed growth.
BBWI’s Price Performance, Valuation & Estimates
Shares of Bath & Body Works have jumped 11.3% over the past six months against the industry’s 5.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, BBWI trades at a forward price-to-earnings ratio of 7.66, down from the industry’s average of 15.31. 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 14.6%, whereas the same for fiscal 2027 indicates an uptick of 4.3%. Earnings estimates for fiscal 2026 and 2027 have been revised upward by a penny and remained unchanged, respectively, over the past 30 days.
Image Source: Zacks Investment Research
BBWI currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company sports 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 indicates 62.1% growth from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.
Image: Bigstock
BBWI's International Momentum Adds Strength to Its Growth Story
Key Takeaways
Bath & Body Works, Inc. (BBWI - Free Report) is gaining support from international markets as it works to restore sustainable growth. Healthy overseas demand, rising product shipments and continued partner expansion are strengthening this business. With North American stores under pressure, international operations offer a valuable source of diversification and a platform for extending the brand’s reach.
That strength was evident in second-quarter fiscal 2026, when international retail sales increased in the high single digits, meeting management’s expectations. International net sales advanced low double digits and exceeded expectations, supported by increased product shipments across regions. These measures reflect consumer demand across partner channels and the company’s sales into its international network.
International and Other sales climbed 24.9% year over year to $108 million. Higher international product sales contributed to the increase, alongside expanded domestic wholesale distribution through Ulta Beauty and Amazon. While this category includes more than overseas operations, its performance highlights the growing contribution from channels beyond BBWI’s traditional North American stores.
The international footprint also continued to expand. Partners opened 17 stores during the second quarter, bringing the network to 596 locations, including 37 travel retail stores. This broader presence creates more opportunities for consumers to discover the brand and provides additional outlets for its personal care and home fragrance products.
For fiscal 2026, BBWI narrowed its sales guidance to a decline of 2.5-4% and raised adjusted earnings expectations to $2.60-$2.80 per share. The outlook reflects second-quarter outperformance and management’s latest business assessment. Sustained overseas demand and continued partner expansion could provide further support as BBWI invests in its transformation and works toward renewed growth.
BBWI’s Price Performance, Valuation & Estimates
Shares of Bath & Body Works have jumped 11.3% over the past six months against the industry’s 5.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, BBWI trades at a forward price-to-earnings ratio of 7.66, down from the industry’s average of 15.31. 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 14.6%, whereas the same for fiscal 2027 indicates an uptick of 4.3%. Earnings estimates for fiscal 2026 and 2027 have been revised upward by a penny and remained unchanged, respectively, over the past 30 days.
Image Source: Zacks Investment Research
BBWI currently carries a Zacks Rank #2 (Buy).
Other Key Picks
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company sports 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 indicates 62.1% growth from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
Urban Outfitters, Inc. (URBN - Free Report) is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year earnings and sales suggests growth of 14% and 9.5%, respectively, from the year-ago actuals. URBN delivered a trailing four-quarter average earnings surprise of 9.7%.