Bath & Body Works(US:BBWI) Globenewswire·2026-02-14 12:41Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Bath & Body Works, Inc. due to allegations of violations of federal securities laws, particularly concerning misleading statements and financial guidance [3][5]. 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 [6]. - The company significantly reduced its full-year earnings per diluted share outlook from a range of $3.28 to $3.53 to "at least $2.83" [6]. Strategic Missteps - 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 [5]. - The company admitted that its previous strategy led to reduced investment in core categories and an overreliance on promotions to mask weak financial results [6]. Stock Market Reaction - Following the announcement of disappointing financial results, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025 [7]. Legal Proceedings - Investors who purchased securities in Bath & Body Works between June 4, 2024, and November 19, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights, with a deadline of March 16, 2026, to seek the role of lead plaintiff in the class action [3][8].