Robbins LLP is Investigating Allegations that Bath & Body Works, Inc. (BBWI) Misled Investors Regarding its Business Strategy

Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Bath & Body Works, Inc. (NYSE: BBWI) securities between June 4, 2024 and November 19, 2025.  Bath & Body Works is a specialty retailer of home fragrance and body care products.

The Allegations:

According to the complaint, 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; and (3) as a result, the Company was unlikely to meet its own previously issued financial guidance.

Plaintiff alleges that on November 20, 2025, Bath & Body Works released disappointing third quarter 2025 financial results, including that revenue declined 1% year over year, missed guidance of 1-3% growth for the quarter, and a decline in net income by 26% to $77 million. The Company slashed full-year guidance for net sales and 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

What Now: You may be eligible to participate in the class action against Bath & Body Works, Inc. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.