Research
BMO Capital Initiates Coverage on Bath & Body Works With Market Perform Rating
Bath & Body Works (BBWI) has an average rating of hold and mean price target of $22.21, according to analysts polled by FactSet.
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US Markets
Ulta Beauty's Quarterly Results Show Improving Comparable Sales Growth Trend, Oppenheimer Says
Ulta Beauty's (ULTA) two-year comparable sales growth trend accelerated in the fiscal second quarter, suggesting the company is better positioned to navigate upcoming difficult comparisons, Oppenheimer said in a note emailed Friday.The beauty retailer delivered better-than-expected second-quarter results on Thursday. Comparable sales increased 3.8% in the fiscal second quarter, versus 6.7% growth a year earlier. The Street expected same-store sales growth of 2.3%.Two-year comparable sales growth trend accelerated to 10.5% from 8.2% in the first quarter, according to Oppenheimer. The improvement increases "our confidence in management's ability to lap upcoming difficult compares," analyst Rupesh Parikh wrote.Ulta raised its fiscal 2026 comparable sales growth outlook to 3.2% to 3.7% from its prior guidance of 2.5% to 3.5%. Analysts polled by FactSet expect 3.6%.Ulta shares were down 3.7% in Friday morning trade. The stock has fallen 14% so far this year.Earlier this week, Bath & Body Works (BBWI) said its net sales fell 2.3% year over year in the fiscal second quarter to $1.51 billion. Rival Sally Beauty Holdings (SBH) said earlier this month that its consolidated comparable sales were flat in the fiscal third quarter, while comparable sales at its Sally Beauty segment increased 1.6%.Ulta raised its full-year per-share earnings outlook to $28.70 to $29.00 for the current fiscal year from the prior view of $28.36 to $28.80. Oppenheimer said it had expected the company to reiterate its prior guidance, citing management's conservative nature.Oppenheimer maintained an outperform rating on Ulta, with a $650 price target."We continue to look favorably on Ulta's long-term prospects," Parikh said, citing multiple reasons, including the company's "differentiated offering and unique value proposition."Oppenheimer is now looking for EPS of $28.70 for fiscal 2026 and $31.85 for fiscal 2027 for Ulta, up from its prior estimates of $28.55 and $31.70, respectively.Price: $520.99, Change: $-19.11, Percent Change: -3.54%
$BBWI$SBH$ULTA
Sectors
Sector Update: Consumer Stocks Softer Late Afternoon
Consumer stocks were lower late Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) fractionally lower and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) shedding 0.6%.In corporate news, Nike (NKE) shares fell 2.2% after Truist downgraded the company to hold from buy while cutting its price target to $42 from $47.Bath & Body Works (BBWI) shares jumped past 7% after it raised its full-year earnings outlook following a fiscal Q2 beat amid tariff refund tailwinds.Abercrombie & Fitch (ANF) raised its full-year outlook on Wednesday as tariff-related refund benefits helped the apparel retailer post fiscal Q2 results above Wall Street's estimates. Abercrombie shares surged 38%.J.M. Smucker (SJM) lifted its full-year outlook on Wednesday as the food producer reported stronger-than-expected fiscal Q1 results, with earnings getting a boost from tariff refunds. Its shares gained 5.6%.Kraft Heinz (KHC) said Wednesday that it will transfer the listing of its stock to the New York Stock Exchange. The company said the shares are expected to begin trading on the NYSE on Sept. 14 under its existing ticker symbol KHC. Kraft Heinz shares were down 1.9%.
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Sectors
Sector Update: Consumer
Consumer stocks were lower late Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) decreasing 0.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) shedding 0.5%.In corporate news, Bath & Body Works (BBWI) shares jumped past 8% after it raised its full-year earnings outlook following a fiscal Q2 beat amid tariff refund tailwinds.
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US Markets
Bath & Body Works Upgrades Earnings Outlook Following Second-Quarter Beat; Shares Rise
Bath & Body Works (BBWI) shares jumped Wednesday as the company raised its full-year earnings outlook following a fiscal second-quarter beat amid tariff refund tailwinds.The personal care and home fragrance retailer now expects 2026 adjusted earnings between $2.60 and $2.80 a share, up from its prior outlook range of $2.40 to $2.65. Analysts surveyed by FactSet expect $2.64. Bath & Body Works now projects full-year net sales to decline 4% to 2.5%, compared with its previous forecast calling for a 4.5% to 2.5% to drop.For the quarter through Aug. 1, adjusted EPS jumped to $0.62 from $0.37 a year earlier, topping Wall Street's views for $0.24. Net sales declined 2.3% to $1.51 billion, while the market expected $1.5 billion.Second-quarter adjusted EPS included the benefit from about $80 million of tariff refunds, Chief Executive Daniel Heaf said on an earnings conference call, according to a FactSet transcript. Excluding the benefit, the metric would have been $0.31, $0.06 above the high end of the company's outlook range, according to Heaf.Bath & Body Works shares were up 6.3% in afternoon trade. The stock has lost 6.2% in value so far in 2026."While the underlying business remains pressured and our performance is not yet where we want it to be, we are where we expected to be and our teams are moving at pace to execute our strategy," Heaf told analysts. "Our priority in the back half is to continue to strengthen the underlying drivers of sustainable growth, while closely tracking leading indicators to validate our actions are working ahead of our goal of revenue growth in 2027."Bath & Body Works will exit its home care category, which includes laundry and kitchen products, as the business "creates disproportionate product and operating complexity without generating the productivity or incremental demand required to justify the cost," Heaf said.For the ongoing quarter, the company expects adjusted EPS between $0.07 and $0.12, compared with the Street's expectations of $0.25. The retailer projects third-quarter net sales to fall between 5% and 2.5%."We have been clear since introducing the consumer first formula nine months ago that returning Bath & Body Works to sustainable growth is a multiyear transformation," Heaf told analysts. "2026 remains an investment year."Last week, cosmetics maker Estee Lauder (EL) bumped up its fiscal 2027 operating margin outlook and set sales guidance in line with its preliminary views. Beauty retailer Ulta Beauty (ULTA) is scheduled to report results Thursday.Price: $18.86, Change: $+1.28, Percent Change: +7.25%
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US Markets
Equity Futures Mixed Pre-Bell Ahead of Key Inflation Report, Nvidia Earnings
The main US equity measures were mixed in premarket activity Wednesday as traders await a key inflation report and the latest financial results of tech bellwether Nvidia (NVDA).The Nasdaq was down 0.1%, the Dow Jones Industrial Average was up 0.1%, while the S&P 500 was little changed before the opening bell. The three indexes finished Tuesday trading higher, with the Dow rising for a third consecutive session.The personal income and outlays report for July is scheduled to be released at 8:30 am ET. The report includes the personal consumption expenditure core price index, the Federal Reserve's preferred inflation metric, as well as data on consumer spending.Data are expected to show that core PCE -- which excludes food and energy prices -- increased 0.2% sequentially and 3.3% annually, according to a Bloomberg-compiled consensus.Treasury yields were mixed in premarket action, with the two-year rate retreating one basis point to 4.2% and the 10-year rate little changed at 4.64%.On Tuesday, Boston Fed President Susan Collins said the Fed may have to raise interest rates soon, unless inflation continues to cool.Markets are currently pricing in a 64% probability that the central bank will keep its benchmark rate steady next month, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool.The second estimate report of the US second-quarter gross domestic product is also out at 8:30 am, along with the durable goods orders report for last month. Wednesday's economic calendar also has the weekly mortgage applications bulletin and weekly EIA domestic petroleum inventories report.Richmond Fed President Thomas Barkin is slated to speak at 11:45 am.Nvidia shares were up 0.4% pre-bell, following a 2.2% increase Tuesday. The chipmaking giant is scheduled to report its fiscal second-quarter results after the markets close Wednesday. The current consensus on FactSet is for non-GAAP earnings of $2.09 a share on revenue of $92.27 billion.In a recent note to clients, Morgan Stanley said Nvidia is expected to post strong second-quarter results, though investors are likely to focus more on its longer-term growth drivers.CrowdStrike (CRWD), Salesforce (CRM), Synopsys (SNPS), HP (HPQ) and Urban Outfitters (URBN) are also scheduled to report results in the after hours, while Williams-Sonoma (WSM), J.M. Smucker (SJM), Abercrombie & Fitch (ANF), Bath & Body Works (BBWI) and Kohl's (KSS) post before the bell, among others.West Texas Intermediate crude oil dropped 2.7% to $80.18 a barrel before the open, while Brent fell 3% to $85.97.The foreign ministers of Iran and Oman discussed a proposed framework Tuesday to establish "a joint temporary navigational corridor" through the Strait of Hormuz and implement a joint project to clear the crucial waterway of mines, news outlets reported. The two countries also reportedly agreed to continue technical talks for the future administration of the strait.Intuit (INTU) shares were down 9.8% pre-bell Wednesday after the tax and finance software maker overnight issued a soft fiscal 2027 outlook.Zoom Communications (ZM) fell 6.9% in premarket activity as the video communication platform late Tuesday provided a downbeat earnings outlook for its fiscal third quarter following a second-quarter beat.Gold fell 0.3% to $4,679 per troy ounce, while bitcoin dropped 0.7% to $78,340.
Dow JonesNasdaq CompositeS&P 500$ANF$BBWI$CRM$CRWD$HPQ$INTU$KSS$NVDA$SJM$SNPS$URBN$WSM$ZM
Wire
Bath & Body Works' Q2 EPS Expected to Be in Line With Expectations, UBS Says
Bath & Body Works' (BBWI) underlying sales trends were pressured through July, setting up for relatively in-line Q2 earnings per share, UBS Securities said.The company is scheduled to report its Q2 results before the market opens Aug. 26.UBS said in a Tuesday note that it expects the company to reiterate its fiscal 2026 earnings guidance of $2.40 to $2.65 per share. It said that data points are consistent with conversations with investors, indicating that sentiment around the stock has weakened recently and is now mixed.UBS's evidence lab and industry data point to soft Q2 and Q3-to-date trends, with US store sales growth expected to be around mid-single-digit declines in Q2 and double-digit declines in Q3-to-date.The investment firm expects Q3 earnings per share of $0.25 to $0.30 and sales growth in the low-single-digit percentage decline range year over year, bracketing the Street's $0.26 EPS view.Analysts said, however, that Bath & Body Works will drive long-term growth, primarily related to wholesale channel expansion and ongoing product innovation.UBS has a neutral rating and a $19 price target on the stock.Price: $20.00, Change: $-0.04, Percent Change: -0.20%
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Wire
Bath & Body Works Shares Rise After Citigroup Upgrade
Bath & Body Works (BBWI) shares rose 7.6% in Tuesday trading after Citigroup upgraded the stock to buy from neutral.Trading volume stood at nearly 4.9 million shares, compared with a daily average of about 5.7 million.Price: $20.23, Change: $+1.42, Percent Change: +7.55%
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Research
Citigroup Upgrades Bath & Body Works to Buy From Neutral, Price Target is $25
Bath & Body Works (BBWI) has an average rating of hold and mean price target of $23.29, according to analysts polled by FactSet.
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Sectors
Sector Update: Consumer Stocks Edge Higher Pre-Bell Thursday
Consumer stocks were edging higher pre-bell Thursday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) up 0.6% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) advancing by 0.1%.Bath & Body Works (BBWI) said it opened its first store in Brazil, marking its entry into the country and expanding its global footprint beyond 45 countries. Shares of Bath & Body Works were up more than 4% premarket.Del Monte (DMC) has amended its senior unsecured revolving credit facility, increasing total commitments by $150 million to $900 million, the company said. Del Monte stock was up more than 1% pre-bell.Hasbro (HAS) has entered into a new licensing partnership with Nintendo to develop toys based on the Legend of Zelda franchise. Shares of Hasbro were 0.4% lower premarket.
$BBWI$DMC$HAS$XLP$XLY
Sectors
Sector Update: Consumer
Consumer stocks were edging higher pre-bell Thursday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) up 0.3% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) advancing by 0.3%.Bath & Body Works (BBWI) said it opened its first store in Brazil, marking its entry into the country and expanding its global footprint to more than 45 countries. Shares of Bath & Body Works were 0.4% higher premarket.
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Wire
Bath & Body Works Shares Fall After Goldman Sachs Downgrade
Bath & Body Works (BBWI) shares fell 5.8% on Wednesday after Goldman Sachs downgraded the stock to sell from neutral and lowered its price target to $19 per share from $23.Trading volume stood at nearly 5.2 million shares, compared with a daily average of over 6 million.Price: $19.43, Change: $-1.20, Percent Change: -5.80%
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Research
Goldman Sachs Downgrades Bath & Body Works to Sell From Neutral, Cuts Price Target to $19 From $23
Bath & Body Works (BBWI) has an average rating of Hold and mean price target of $23.07, according to analysts polled by FactSet.
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Wire
Bath & Body Works Expands Distribution With Ulta Beauty Partnership
Bath & Body Works (BBWI) said Tuesday it has entered into a partnership with Ulta Beauty (ULTA) to bring a selection of its body care and home fragrance products to over 600 Ulta Beauty stores across the US and online platform Ulta.com, starting July 12.Financial details weren't provided.The partnership is part of its broader strategy to reach more customers beyond company-owned stores and digital channels, Bath & Body Works said.Shares of Bath & Body Works and Ulta Beauty were up 4% and 0.7%, respectively, in Tuesday trading.Price: $20.42, Change: $+0.79, Percent Change: +4.02%
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Sectors
Sector Update: Consumer Stocks Mixed Premarket Tuesday
Consumer stocks were mixed premarket Tuesday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) up 1.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) 0.9% lower.Edgewell Personal Care (EPC) has rejected an unsolicited $30-per-share takeover bid from private equity firm Yellow Wood Partners, with the board deeming the offer too low, Bloomberg reported, citing people familiar with the matter. Shares of Edgewell Personal Care were up more than 9% pre-bell.Keurig Dr Pepper (KDP) shares were up more than 1% after the company said it has launched a search process for the future CEO of Global Coffee, which will be separated as an independent public entity.Ulta Beauty (ULTA) will begin selling Bath & Body Works (BBWI) products at over 600 retail locations on July 12 as part of turnaround plans by both companies, Reuters reported, citing company executives. Ulta Beauty shares were 0.7% lower, while Bath & Body Works stock was up 0.3% pre-bell.
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Sectors
Sector Update: Consumer Stocks Mixed Pre-Bell Monday
Consumer stocks were mixed pre-bell Monday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) 0.7% lower and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) up 1.5%.Amazon.com (AMZN) shares were up more than 2% after the company said it has completed the issuance of approximately 13.97 billion Canadian dollars ($9.99 billion) in aggregate notes across multiple maturities as part of a registered debt offering.American Express (AXP) signed a put option agreement to acquire TheFork, an online restaurant reservation and management platform in Europe, from Tripadvisor (TRIP) for $700 million in cash, the companies said. Tripadvisor stock was up more than 11% premarket.Bath & Body Works (BBWI) Chief Executive Officer Daniel Heaf aims to help the company win over younger consumers, The Wall Street Journal reported, citing an interview with the CEO. Shares of Bath & Body Works were up 0.7% pre-bell.
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US Markets
Softline Retailers Likely to Benefit From US Data Center Boom, UBS Says
US softline retailers are expected to take advantage of an ongoing data center construction boom, with Abercrombie & Fitch (ANF), Urban Outfitters (URBN), and Macy's (M) among those likely to see "outsized" benefits, UBS Securities said in a note e-mailed Monday.US commercial data center capacity has increased at a nearly 30% to 40% annual pace over the last two years, with installed capacity seen rising 20% to 30% annually in the near term, the brokerage said, citing industry experts.The data center construction boom is expected to lift the economy and boost the consumer spending backdrop for apparel and footwear in the concerned regions. However, the data center buildout is not expected to be distributed evenly across the country, UBS analysts Jay Sole and Mauricio Serna said in the note to clients."We believe retailers with a high percentage of stores located in areas with strong data center growth will benefit more than retailers with less exposure to these areas will," the analysts wrote.Abercrombie & Fitch, Urban Outfitters, Macy's, and Steven Madden (SHOO) are among the retailers poised to see "outsized" benefits, Sole and Serna said. On the other hand, Kohl's (KSS), Bath & Body Works (BBWI), Buckle (BKE), Boot Barn (BOOT), and American Eagle Outfitters (AEO) have "the most relevant low exposure," the duo wrote.Among off-price retailers, Ross Stores (ROST) has the "most relevant high exposure," while TJX (TJX) is on the other side of the spectrum, according to the note."While some regions have embraced data centers, other localities have not," UBS said. "Some municipalities reject data center proposals because the long-term local economic payoff is perceived as limited. They also have concerns about resource and infrastructure strain."The brokerage expects all softline stocks to benefit from their use of AI, as well as the technology's impact on the overall economy."Softline companies are taking AI very seriously and AI is likely already having a positive impact on the industry's financial performance," Sole and Serna said. "We believe the meaningful returns companies are already and will continue to achieve on their AI investments will drive upside (earnings-per-share) surprises."Price: $75.30, Change: $-1.92, Percent Change: -2.49%
$AEO$ANF$BBWI$BKE$BOOT$KSS$M$ROST$SHOO$TJX$URBN
Wire
Bath & Body Works Faces Long-Term Margin Headwinds Amid Business Revamp, UBS Says
Bath & Body Works (BBWI) is entering a "multiyear process" to revamp direct-to-consumer sales growth, though risks tied to its expansion into Amazon.com (AMZN) and other mass retail channels could pressure long-term margins, UBS Securities said in a report emailed Thursday.The firm said improving product assortments, brand positioning and operating models will take time, while broader wholesale distribution could cannibalize the company's direct-to-consumer business and create structural margin headwinds.Bath & Body Works reiterated its fiscal 2026 earnings guidance of $2.40 to $2.65 per share after Q1 results, while its management said its Amazon rollout has delivered double-digit week-over-week growth since February and attracted "younger and more affluent consumers," the report said.While the company continues to plan to deliver $175 million in cost savings this fiscal year, its international business faces substantial pressure, according to the report.UBS maintained a neutral rating on Bath & Body Works with a price target of $19.Price: $20.14, Change: $+0.69, Percent Change: +3.55%
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Sectors
Sector Update: Consumer Stocks Rise Late Afternoon
Consumer stocks were higher late Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) rising 1.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 1.7%.Redbook US same-store sales rose by 9% from a year earlier in the week ended May 23 after an 8.1% year-over-year increase in the previous week. "Demand for a wide variety of summer, home and garden, and seasonal apparel products was the main focus for most consumers," Redbook said.In corporate news, Lululemon Athletica (LULU) said Wednesday that it has settled its dispute with company founder Chip Wilson. Wilson, who owns an 8.7% stake in the company, sent a letter in April to shareholders questioning the appointment of Heidi O'Neill as chief executive. Lululemon shares gained 3.9%.Tesla (TSLA) and SpaceX (SPCX) may eventually merge after SpaceX's initial public offering in a move that would consolidate Elon Musk's control across his companies, according to early SpaceX investor Peter Diamandis, Bloomberg reported, citing an interview. Tesla shares rose 1.1%.Abercrombie & Fitch's (ANF) fiscal Q1 earnings topped Wall Street's projections amid record sales for the apparel retailer. Its shares climbed past 13%.Bath & Body Works' (BBWI) fiscal Q1 results exceeded market estimates, while the personal care and home fragrance retailer said its chief financial officer plans to step down. Its shares jumped nearly 11%.Manchester United (MANU) on Wednesday raised its full-year top-line outlook as the UK soccer club posted double-digit growth in fiscal Q3 revenue year over year, helping it swing to earnings. Manchester United shares surged over 13%.
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Sectors
Sector Update: Consumer Stocks Rise in Afternoon Trading
Consumer stocks were higher Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) rising 1.4% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 1.7%.Redbook US same-store sales rose by 9% from a year earlier in the week ended May 23 after an 8.1% year-over-year increase in the previous week. "Demand for a wide variety of summer, home and garden, and seasonal apparel products was the main focus for most consumers," Redbook said.In corporate news, Abercrombie & Fitch's (ANF) fiscal Q1 earnings topped Wall Street's projections amid record sales for the apparel retailer. Its shares climbed 12.7%.Bath & Body Works' (BBWI) fiscal Q1 results exceeded market estimates, while the personal care and home fragrance retailer said its chief financial officer plans to step down. Its shares jumped past 10%.Manchester United (MANU) on Wednesday raised its full-year top-line outlook as the UK soccer club posted double-digit growth in fiscal Q3 revenue year over year, helping it swing to earnings. Manchester United shares surged 15%.
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