How does BBWI’s Q2 performance and FY2025 outlook compare to its main competitors in the personal care and retail space?

Fundamentals & Peer Comparison – Bath & Body Works (BBWI) posted a strong Q2‑25, beating Street revenue and EPS expectations and lifting its FY 2025 outlook by roughly 5 % on both the top‑line and earnings‑per‑share fronts. Same‑store sales (SSS) accelerated 8 % YoY, driven by higher average ticket size and a modest rollout of new scent lines. By contrast, Ulta Beauty (ULTA) posted a solid but slower 4 % SSS gain and trimmed its FY 2025 guidance modestly after a weaker‐than‑expected beauty‑services segment. The Estée Lauder Companies (EL) reported flat‑to‑slight‑down core sales, citing soft luxury spend, while broader consumer‑care giants such as Procter & Gamble (PG) and Johnson & Johnson (JNJ) posted modest growth in the high‑single‑digit range but with far lower margin expansion than BBWI. BBWI’s FY 2025 adjusted EBITDA margin is now projected at ~16 %, roughly 150 bps ahead of Ulta and 200 bps ahead of Estée Lauder, underscoring its pricing power and efficient cost structure within the personal‑care niche.

Technical & Trade‑able View – The stock has broken above its 50‑day MA and now sits near the 200‑day MA, with a bullish “cup‑with‑handle” formation forming on the weekly chart. Relative strength (RSI ≈ 58) remains in a neutral‑to‑bullish zone, and daily volume has spiked ~30 % versus its 20‑day average on the earnings release—signs of institutional accumulation. BBWI is trading at a forward EV/EBITDA of ~10×, a discount to the sector median (~12×) and provides a ~9 % upside to the current price, assuming the FY 2025 guidance holds. Actionable insight: Consider a long position on pull‑backs to the 50‑day MA (~$78) with a stop just below the 200‑day MA (~$72) and target the next resistance around $88–$90, which aligns with the 12‑month moving‑average convergence. Keep an eye on upcoming competitor reports (especially Ulta Q3) and consumer‑confidence data; a miss from peers could further lift BBWI’s relative performance, while a broader discretionary slowdown would warrant tightening stops.