Bath & Body Works(US:BBWI) Businesswire·2026-01-14 17:07Core Viewpoint - A class action lawsuit has been filed against Bath & Body Works, Inc. for alleged securities fraud, impacting shareholders who acquired the company's securities between June 4, 2024, and November 19, 2025 [1][2]. Financial Performance - On August 28, 2025, Bath & Body Works reported Q2 2025 earnings per diluted share of $0.30, a decline of 55.8% year over year, and net income of $64 million, down 57.9% year over year [3]. - The company cut its full-year guidance for earnings per diluted share by $0.03, adjusting it to a range of $3.28 to $3.53 [3]. - Following this announcement, the stock price fell by $2.18, or 6.9%, closing at $29.36 per share [4]. Subsequent Developments - On November 20, 2025, Bath & Body Works released Q3 2025 results, reporting a 1% decline in revenue year over year and a 26% drop in net income to $77 million [5]. - The company revised its full-year guidance for net sales from a previously positive range of 1.5%-2.7% to a negative "high single digits" and cut expected earnings per diluted share to "at least $2.83" [5]. - The stock price subsequently fell by $5.22, or 24.8%, closing at $15.82 per share [6]. Allegations in the Lawsuit - The lawsuit alleges that the company made materially false and misleading statements and failed to disclose adverse facts about its business and operations [7]. - Specific allegations include the failure to disclose that the strategy of pursuing "adjacencies, collaborations, and promotions" was not effective in growing the customer base or delivering expected sales growth [7][8]. - It is claimed that the company relied on brand collaborations to mask weak financial results and was unlikely to meet its previously issued financial guidance [8].