Bath & Body Works(US:BBWI) Globenewswire·2026-02-19 14:28Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Bath & Body Works, Inc. due to alleged violations of federal securities laws, encouraging affected investors to contact them before the March 16, 2026 deadline for lead plaintiff applications in a federal securities class action [4][6]. Company Performance - Bath & Body Works reported disappointing third quarter 2025 results, 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 [7]. - 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" [7]. Strategic Issues - The complaint alleges that Bath & Body Works' strategy of pursuing "adjacencies, collaborations and promotions" failed to grow its customer base and did not deliver the expected growth in net sales [6]. - The company admitted that its previous strategy led to reduced investment in core categories and an overreliance on promotions to mask weak financial results [7]. Stock Market Reaction - Following the disappointing disclosures, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025 [8].