How do BBWI's upcoming results compare to those of key competitors (e.g., L Brands, The Body Shop, Ulta, etc.)?

Fundamental backdrop

Bath & Body Works (BBWI) is slated to release its Q2‑2025 results on 28 Aug. 2025, a quarter that historically delivers modest top‑line growth (≈3‑4 % YoY) and steady gross margins in the high‑30s % range. The company’s recent strategic focus on “experience‑first” retail, expanded fragrance lines, and a stronger e‑commerce platform has helped it keep same‑store sales (SSS) growth above the broader personal‑care sector. By contrast, Ulta Beauty posted a 12‑month comp‑sales acceleration of ~9 % in its latest quarter, driven by a mix of high‑margin services (salons, skin‑care) and a robust loyalty program that is expanding its market‑share share. L Brands (now the Victoria’s Secret & Bath & Body Works parent) reported a 5‑6 % YoY decline in comparable sales for its beauty segment, reflecting a slower‑moving “classic‑fragrance” mix and inventory‑clearance cycles. The Body Shop, still privately held, has been under pressure from supply‑chain cost inflation and a consumer shift toward “clean‑beauty” at price‑points that are harder to sustain; its last disclosed quarter showed a sub‑2 % SSS decline and narrowing margins (mid‑20s %).

Technical & relative valuation

BBWI’s price action has been trading in a tight 20‑day range around $45–$48, holding a 200‑day moving average (MA) support near $44.5. The stock’s Relative Strength Index (RSI) sits at ~55, indicating room for upside if the upcoming earnings beat expectations. Ulta (ULTA) is on a steeper uptrend, breaking above its 50‑day MA and holding a bullish MACD crossover, while L Brands (LVMH‑listed “L Brands” ticker) remains in a down‑trend channel, and The Body Shop’s implied valuation (via comparable public peers) is at a discount of ~15 % to the sector median EV/EBITDA.

Actionable insight

Given BBWI’s historically modest but positive earnings momentum and its tighter valuation relative to the higher‑growth Ulta, the market will likely price BBWI’s Q2 results as a “defensive‑beauty” play. A beat‑and‑raise on SSS (≥4 % YoY) and margin expansion (+30 bps) could trigger a short‑term rally toward the $48‑$50 resistance zone, offering a buy‑on‑dip opportunity for risk‑averse traders seeking exposure to the “experience‑first” segment. Conversely, if BBWI’s comps lag (≤2 % YoY) or margins compress, the stock may retreat to its 200‑day MA support, and a tight‑stop at $44.5 would be prudent. In a relative‑strength sense, BBWI is positioned to underperform Ulta’s upside but could outshine the lagging L Brands and The Body Shop, making it a potential short‑term defensive hold in a portfolio that already has Ulta exposure.