Bath & Body Works(US:BBWI) Globenewswire·2026-01-30 18:08Core Viewpoint - Bath & Body Works, Inc. is facing a class action lawsuit due to significant declines in financial performance and misleading statements regarding its business strategy and growth prospects during the Class Period from June 4, 2024, to November 19, 2025 [1][6]. 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, missing guidance by $0.03 [2]. - On November 20, 2025, the company reported Q3 2025 revenue declined by 1% year over year, net income fell 26% to $77 million, and full year guidance for net sales was cut from a positive 1.5%-2.7% to a negative "high single digits" [4]. Stock Price Reaction - Following the Q2 results on August 28, 2025, Bath & Body Works' stock price fell by $2.18, or 6.9%, closing at $29.36 per share [3]. - After the Q3 results on November 20, 2025, the stock price dropped by $5.22, or 24.8%, closing at $15.82 per share [5]. Business Strategy and Misleading Statements - The lawsuit alleges that the company misled investors by failing to disclose that its strategy of "adjacencies, collaborations and promotions" was ineffective in growing the customer base and that it relied on brand collaborations to mask weak financial results [6]. - The company admitted that its previous strategy had not been successful and announced a shift to focus on core categories instead of adjacencies [4].