LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired Bath & Body Works, Inc. (“Bath & Body Works” or the “Company”) (NYSE: BBWI) securities between June 4, 2024 and November 19, 2025, inclusive (the “Class Period”). Bath & Body Works investors have until March 16, 2026 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR BATH & BODY WORKS, INC. (BBWI) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On August 28, 2025, before the market opened, Bath & Body Works released its second quarter 2025 financial results. The Company reported, among other things, earnings per diluted share of $0.30, a decline of 55.8% year over year, missing the Company’s prior guidance on the low end by $0.03. The Company further reported net income of $64 million, a decline of 57.9% year over year. The Company also announced it was cutting its full year guidance for earnings per diluted share by $0.03 at the midpoint, to $3.28 to $3.53.
On this news, Bath & Body Works’ stock price fell $2.18, or 6.9%, to close at $29.36 per share on August 28, 2025, on unusually heavy trading volume.
Then, on November 20, 2025, before the market opened, Bath & Body Works released third quarter 2025 financial results. The Company reported revenue declined 1% year over year, missing Company’s guidance of 1-3% growth for the quarter. Net income also declined, falling 26% to $77 million. Finally, the Company announced it was slashing full year guidance for net sales from a previously positive 1.5%-2.7% to a negative “high single digits.” The Company also cut expected earnings per diluted share from $3.28 to $3.53 to “at least $2.83.”
In an investor presentation published the same day, the Company announced a new business strategy and admitted its strategy of “adjacencies, collaborations and promotions” had “not grown our total customer base.” The Company also offered a “diagnosis” of its underperformance, including that the focus on adjacencies had “reduced focus on investing in our core categories;” that collaborations “have been used to carry quarters;” and that the Company had become “overly reliant on deeper and more frequent promotions to drive growth.” The Company announced would exit certain adjacencies and instead focus on core categories.
On this news, Bath & Body Works’ stock price fell $5.22, or 24.8%, to close at $15.82 per share on November 20, 2025, on unusually heavy trading volume.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company’s strategy of pursuing “adjacencies, collaborations and promotions” was not growing the customer base and/or delivering the level of growth in net sales touted; (2) as the Company’s strategy of “adjacencies, collaborations and promotions” faltered, the Company relied on brand collaborations “to carry quarters” and obfuscate otherwise weak underlying financial results; (3) as a result, the Company was unlikely to meet its own previously issued financial guidance; (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Contact Us To Participate or Learn More:
If you purchased Bath & Body Works securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
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Contacts
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
