Bath & Body Works (BBWI) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Bath & Body Works (BBWI) is strongly positioned to beat its consensus EPS estimate of $0.37 for the quarter ending July 2025, which is flat year-over-year, while revenues are projected to increase 1.8% to $1.55 billion. This outlook is bolstered by a positive Zacks Earnings ESP of +3.26% and a Zacks Rank #3, along with the company's consistent record of beating EPS estimates in the past four quarters. A positive surprise in the upcoming August 28 report could drive the stock higher.

Analysis

Bath & Body Works (BBWI) is positioned for a likely earnings beat in its upcoming quarterly report for July 2025, scheduled for August 28. Consensus estimates project flat year-over-year earnings per share at $0.37, alongside a 1.8% increase in revenue to $1.55 billion. Analyst sentiment has trended positively, reflected in a 0.83% upward revision of the consensus EPS estimate over the last 30 days. The primary bullish indicator is the company's Zacks Earnings ESP of +3.26%, which, when combined with its Zacks Rank of #3 (Hold), suggests a high statistical probability of exceeding the consensus EPS estimate, based on historical data showing this combination leads to a positive surprise nearly 70% of the time. This outlook is further substantiated by BBWI's consistent performance, having surpassed consensus EPS estimates in each of the last four quarters, including a 4.26% beat in the prior quarter. While these quantitative factors point towards a positive outcome, the sustainability of any potential stock price appreciation will be heavily dependent on management's commentary and forward guidance provided during the earnings call.

Key Decisions for Investors

• Given the strong quantitative indicators pointing to an earnings beat, including a positive Earnings ESP of +3.26% and a history of positive surprises, investors may consider a tactical long position ahead of the August 28 report.
• Investors should look beyond the headline EPS number and scrutinize management's forward-looking guidance and commentary on business conditions, as these factors will be critical in determining the stock's price trajectory post-announcement.
• While the probability of an earnings beat is high, the flat year-over-year EPS forecast suggests investors should monitor revenue growth and profit margin trends closely to assess the underlying health of the business.