Bath & Body Works(US:BBWI) Globenewswire·2026-03-03 01:23Core Viewpoint - A class action has been filed against Bath & Body Works, Inc. for allegedly misleading investors regarding its business strategy and financial performance [1][2]. Allegations - The complaint alleges that Bath & Body Works did not disclose that its strategy of pursuing "adjacencies, collaborations and promotions" was failing to grow the customer base and was not delivering the expected growth in net sales [2]. - It is claimed that the company relied on brand collaborations to mask weak financial results and was unlikely to meet its previously issued financial guidance [2]. Financial Performance - On November 20, 2025, Bath & Body Works reported disappointing third quarter results, with revenue declining by 1% year over year, missing the guidance of 1-3% growth [3]. - The net income fell by 26% to $77 million, and the company reduced its full-year guidance for net sales and earnings per diluted share from $3.28 to "at least $2.83" [3]. - The company acknowledged that its previous strategy had not grown the total customer base and indicated a shift in focus back to core categories [3]. Stock Market Reaction - Following the announcement of the disappointing results and strategic shift, Bath & Body Works' stock price dropped by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025 [4].