Earnings To Watch: Bath and Body Works (BBWI) Reports Q2 Results Tomorrow

Personal care and home fragrance retailer Bath & Body Works (NYSE:BBWI) will be reporting earnings tomorrow before market open. Here’s what to look for.

Bath and Body Works beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $1.38 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ earnings estimates but underwhelming earnings guidance for the full year.

Is Bath and Body Works a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Bath and Body Works’s revenue to decline 1.1% year on year to $1.54 billion, improving from the 3.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Bath and Body Works has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.

Looking at Bath and Body Works’s peers in the specialty retail segment, only Sally Beauty has reported results so far. It beat analysts’ revenue estimates by 1.1%, delivering year-on-year sales growth of 1.2%. The stock traded up 8.4% on the results.

Read our full analysis of Sally Beauty’s earnings results here.

Investors in the specialty retail segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Bath and Body Works’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $50.2 (compared to the current share price of $35.21).

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