Bath & Body Works(US:BBWI) Globenewswire·2026-01-23 15:18Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Bath & Body Works, Inc. due to allegations of misleading statements and failure to disclose critical information regarding the company's financial performance and business strategy [4][6]. Financial Performance - Bath & Body Works reported a 1% year-over-year decline in revenue for Q3 2025, missing prior guidance of 1-3% growth [7]. - The company's net income dropped by 26% to $77 million [7]. - The full-year earnings per diluted share outlook was sharply reduced from a range of $3.28 to $3.53 to "at least $2.83" [7]. Business Strategy - The company's strategy of pursuing "adjacencies, collaborations and promotions" was found to be ineffective in growing the customer base and delivering expected net sales growth [6]. - Bath & Body Works admitted that this strategy led to reduced investment in core categories and an overreliance on brand collaborations to mask weak financial results [7]. 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 [8]. Legal Proceedings - Investors who suffered losses between June 4, 2024, and November 19, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options [1][4]. - There is a deadline of March 16, 2026, for investors to seek the role of lead plaintiff in the federal securities class action against the company [4].