Bath & Body Works (BBWI) Accused of Misleading Investors, Stock Plummets 24.8%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Businesswire
- Lawsuit Disclosure: Robbins LLP is initiating a class action against Bath & Body Works (BBWI), alleging that the company misled investors from June 2024 to November 2025 by failing to disclose that its business strategy was not achieving the expected growth.
- Declining Financial Performance: The Q3 2025 financial results revealed a 1% year-over-year revenue decline, missing the 1-3% growth guidance, while net income plummeted 26% to $77 million, prompting the company to lower its full-year sales and earnings per share forecasts.
- Strategic Shift Announcement: On the same day as the disappointing results, the company admitted that its strategy of “adjacencies, collaborations, and promotions” had not expanded its customer base and announced plans to exit certain adjacencies to refocus on core categories for performance improvement.
- Stock Price Volatility: Following this news, Bath & Body Works' stock price fell by $5.22, or 24.8%, closing at $15.82 per share on November 20, 2025, indicating a significant market pessimism regarding the company's future outlook.
Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBWI is 30.50 USD with a low forecast of 15.00 USD and a high forecast of 43.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
7 Buy
6 Hold
0 Sell
Moderate Buy
Current: 23.290
Low
15.00
Averages
30.50
High
43.00
Current: 23.290
Low
15.00
Averages
30.50
High
43.00
About BBWI
Bath & Body Works, Inc. is a global omnichannel retailer focused on personal care and home fragrance. The Company offers a range of fragrances for the body and home, including selling collections for 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions and body creams. It delivers customers their fragrances in multiple forms and categories. The Company sells merchandise through its retail stores in the United States and Canada, and through its Websites and other channels, under the Bath & Body Works, White Barn and other brand names. The Company’s international business is conducted through franchise, license and wholesale partners. It provides in-store experiences at more than 1,890 Company-operated Bath & Body Works locations in the United States and Canada, more than 525 international franchised locations and an online storefront at bathandbodyworks.com. Additionally, it offers a buy online pick-up in-store (BOPIS) option.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
