Bath & Body Works(US:BBWI) Prnewswire·2026-01-14 22:34Core Viewpoint - A class action has been filed against Bath & Body Works, Inc. for allegedly misleading investors regarding its business strategy and financial performance during a specified period [1][2]. Group 1: Allegations and Financial Performance - The complaint alleges that Bath & Body Works did not disclose that its strategy of pursuing "adjacencies, collaborations and promotions" was failing to grow its customer base and was not delivering the expected growth in net sales [2]. - The company reported disappointing third quarter 2025 results, with a revenue decline of 1% year over year, missing the guidance of 1-3% growth, and a net income drop of 26% to $77 million [3]. - Following the release of these results, Bath & Body Works cut its full-year guidance for net sales and reduced expected earnings per diluted share from $3.28 to "at least $2.83" [3]. Group 2: Strategic Changes - In an investor presentation, Bath & Body Works acknowledged that its previous strategy had not grown its total customer base and admitted to an over-reliance on promotions to drive growth [3]. - The company announced plans to exit certain adjacencies and refocus on its core categories to improve performance [3]. Group 3: Market Reaction - On November 20, 2025, following the disappointing financial results and strategic announcements, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share [4].