Bath & Body Works(US:BBWI) Prnewswire·2026-01-17 18:10Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Bath & Body Works, Inc. due to alleged violations of federal securities laws, encouraging affected investors to contact them for legal options [2][4]. Financial Performance - Bath & Body Works reported a disappointing third quarter for 2025, with a 1% year-over-year decline in revenue, missing prior guidance of 1-3% growth, and a 26% drop in net income to $77 million [5]. - The company significantly reduced its full-year earnings per diluted share guidance from a range of $3.28 to $3.53 to "at least $2.83" [5]. Strategic Issues - The complaint alleges that the company's strategy of pursuing "adjacencies, collaborations and promotions" failed to grow the customer base and did not deliver the expected growth in net sales [4]. - The company admitted that its previous strategy led to reduced investment in core categories and an overreliance on promotions to mask weak financial results [5]. Stock Market Reaction - Following the disappointing financial disclosures, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025 [6].