| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 5.6x | 17.3x | Top tier | |
Growth | 28 | -2.2% | 7.1% | Bottom tier | |
Quality | 85 | 28.5% | 4.5% | Top tier | |
Safety | 52 | 2.6x | 2.6x | Around median | |
Capital Return | 88 | 3.74% | 0.06% | Top tier | |
Momentum | 54 | -35.6% | -1.6% | Around median | |
Sentiment | 68 | 11 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
0% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Bath & Body Works sells body care products, home fragrances, soaps, and sanitizers through its store network in North America, its digital channel, distribution partnerships with Amazon and Ulta Beauty, and international markets. Revenue is primarily generated by company-owned stores, while the company is expanding its reach to new consumers through e-commerce and third-party distribution. The company has decided to exit the Home Care category, which includes laundry and kitchen products, because it represents less than 1% of annual sales and adds disproportionate operational complexity.
In Q2 of fiscal 2027, net sales were $1.5 billion, down 2.3% year over year, but better than the company's guidance range of a 5% to 3% decline. According to EDGAR data, gross profit was $692 million, net income was $118 million, and earnings per share were $0.58; adjusted earnings per share were $0.62, but included approximately $80 million in tariff refunds and would have been $0.31 without them. Reported gross margin was 45.7%, or 40.4% excluding the refunds, and adjusted operating income margin was 14.8%.
The channel mix revealed continued pressure in stores alongside improvement in alternative channels: U.S. and Canada store sales declined 5.4% to $1.1 billion, while direct sales rose 3% to $275 million, and international and expanded distribution revenue jumped 24.9% to $108 million. By category, body care declined by a mid-single-digit percentage, home fragrance declined by a low-single-digit percentage, while soap and sanitizer sales were flat. Data for the twelve months ended in 2026 show revenue of $7.2 billion, gross profit of $3.2 billion, and net income of $781 million.
The average analyst price target is $21.4, within a relatively narrow range of $19 to $24, accompanied by a Neutral consensus that does not provide broad support for a strong upside thesis. The average target is approximately 34% below the 52-week range high of $32.32 and approximately 50% above its low of $14.28, reflecting a revaluation associated with contracting sales, store pressure, and partial reliance on non-recurring tariff refunds. A price-to-earnings ratio is not available in the provided data, so the valuation assessment is based on the target range, the 52-week range, and the company's ability to convert digital growth and expanded distribution into sustainable overall growth.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Net sales declined 2.3% to $1.5 billion, which was better than management's guidance for a decline of between 5% and 3%. Adjusted earnings per share were $0.62 versus a guidance range of $0.20 to $0.25. However, the result included approximately $80 million in tariff refunds; without them, adjusted earnings per share would have been $0.31. Expense savings and improvement in the digital channel also contributed to the outperformance.
The company has not yet returned to overall growth, as sales declined 2.3% in Q2 fiscal 2027. Management expects fiscal 2026 sales to decline between 4% and 2.5%, and Q3 sales to decline between 5% and 2.5%. In contrast, the digital channel returned to growth, and direct sales rose 3% to $275 million. Management describes growth in 2027 as a strategic objective, but it has not provided financial guidance for that year.
Fruit Fusion exceeded sales expectations during Q2 fiscal 2027 and recorded a higher average selling price than the core fragrance body care assortment, with several product formats selling out. The campaign brought together Hilary Duff and a network of content creators, generating approximately 615 million impressions and more than 50 thousand new social followers. The company plans to add two fragrances in Q3 fiscal 2027 and additional formats in 2027. The product therefore represents a practical test of the Consumer First Formula's ability to create enduring franchises instead of short-term seasonal collections.
Automated analysis for informational purposes only — not investment advice.
Amazon sales more than tripled compared with the previous quarter, with a higher average selling price and a larger share of consumers new to the brand. The company launched its products in approximately 600 Ulta Beauty stores, where encouraging initial demand emerged for trial sizes and gifts. International and expanded distribution revenue rose 24.9% to $108 million, but U.S. and Canada store sales declined 5.4% to $1.1 billion. Expanded distribution therefore eases the pressure, but it has not become large enough to reverse the trajectory of overall revenue.
Q2 fiscal 2027 results benefited from approximately $80 million in tariff refunds, which added about 530 basis points to merchandise margin. In contrast, management expects additional pressure of approximately $30 million, or 40 basis points, from tariffs and input inflation during the remainder of fiscal 2026. The guidance assumes Canadian tariffs remain at 50%, and Canadian production, mostly candles, represents approximately 3% of merchandise cost. There is also potential exposure to retaliatory tariffs on the Canadian retail business if they are applied to the company's categories.
The company expects free cash flow of approximately $650 million in fiscal 2026, up from previous guidance of $600 million. It lowered its capital expenditure forecast to approximately $240 million, after spending $98 million from the beginning of the year through the end of Q2 fiscal 2027. It returned $40 million to shareholders through dividends during the quarter. On August 19, 2026, it redeemed $250 million of 2029 notes early, and the interest savings were reflected in the updated non-operating expense forecast.