From Nasdaq: 2025-04-21 11:22:00

Ulta Beauty and Bath & Body Works are prominent retailers in the beauty industry, offering a wide range of products and services. While Ulta Beauty caters to all beauty needs, Bath & Body Works focuses on personal care and fragrances. Both companies are adapting to changing market dynamics and offer potential investment opportunities.

Ulta Beauty’s unique business model integrates various beauty brands and services, enhancing customer engagement and foot traffic. The company’s omnichannel strategy, loyalty program, and marketing initiatives drive brand visibility and customer loyalty. However, near-term challenges like margin pressure and competition in the prestige beauty segment pose risks to profitability.

Bath & Body Works excels in fragrance, skincare, and home scents, with a loyal customer base and a strong rewards program driving sales. The company’s expansion into new product categories and strategic partnerships fuel growth. Yet, challenges like tariffs and weak international sales could impact profitability and long-term growth potential.

The Zacks Consensus Estimate shows a decline in Ulta Beauty’s EPS for fiscal 2025 but predicts growth for Bath & Body Works. Both companies are trading below their historical valuation levels, with BBWI showing deeper undervaluation. Despite recent stock declines, BBWI’s potential for outsized returns based on earnings growth makes it an attractive option for value investors.

Ulta Beauty and Bath & Body Works present unique opportunities for investors, with Ulta’s diverse offerings and Bath & Body Works’ focused niche. While both stocks have a Hold rating, Bath & Body Works stands out for its deeper valuation discount and solid earnings growth potential. Value-driven investors may find BBWI a compelling choice for long-term investment.



Read more at Nasdaq: ULTA vs. BBWI: Which Beauty Retailer Stock Should You Bet On?