Bath & Body Works(US:BBWI) TMX Newsfile·2026-02-16 14:33Core 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 [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 [5]. - The company's net income dropped by 26% to $77 million, and it significantly reduced its full-year earnings per diluted share outlook from a range of $3.28 to $3.53 to "at least $2.83" [5]. - Following these disclosures, the stock price fell by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025 [6]. Business Strategy - 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]. - It was noted that the company relied on brand collaborations to mask weak financial results and that this strategy led to reduced investment in core categories and an overreliance on promotions [5].