Bath & Body Works(US:BBWI) Prnewswire·2026-03-04 15:22Core Viewpoint - Bath & Body Works, Inc. is facing a federal securities class action due to allegations of misleading statements and failure to disclose critical information regarding its business strategy and financial performance [1][2] Summary by Relevant Sections Company Performance - Bath & Body Works reported a 1% year-over-year decline in revenue for Q3 2025, missing prior guidance of 1-3% growth [1] - The company experienced a 26% drop in net income, reporting $77 million [1] - Full-year earnings per diluted share guidance was sharply reduced from a range of $3.28 to $3.53 to "at least $2.83" [1] Business Strategy - The company's strategy of pursuing "adjacencies, collaborations and promotions" failed to grow its customer base and did not deliver the expected growth in net sales [1] - As the strategy faltered, Bath & Body Works relied on brand collaborations to mask weak financial results [1] - The company acknowledged that its previous focus on collaborations led to reduced investment in core categories and an overreliance on promotions [1] Legal Proceedings - A lead plaintiff is being sought for the class action, with a deadline of March 16, 2026, for investors who suffered significant losses [1] - The law firm Faruqi & Faruqi, LLP is investigating potential claims against Bath & Body Works and encourages individuals with relevant information to come forward [1][2]