Globenewswire·2026-01-22 21:10Core Viewpoint - A class action lawsuit has been filed against Bath & Body Works, Inc. for failing to disclose critical information regarding its business strategy and financial performance during the class period from June 4, 2024, to November 19, 2025 [2][5]. Allegation Details - The lawsuit alleges that Bath & Body Works did not disclose that its strategy of pursuing "adjacencies, collaborations and promotions" was ineffective in growing its customer base and did not deliver the expected growth in net sales [5]. - It is claimed that as the strategy faltered, the company relied on brand collaborations to mask weak financial results and was unlikely to meet its previously issued financial guidance [5]. - On November 20, 2025, the company reported disappointing third-quarter results, with a 1% year-over-year revenue decline, missing the guidance of 1-3% growth, and a 26% drop in net income to $77 million [5]. - The company revised its full-year guidance for net sales and reduced expected earnings per diluted share from $3.28 to "at least $2.83" [5]. - The company acknowledged that its previous strategy had not grown its total customer base and indicated a shift in focus back to core categories [5]. Stock Market Reaction - Following the announcement of disappointing financial results and the new business strategy, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025 [5].