Bath & Body Works Faces Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Globenewswire
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Bath & Body Works, alleging securities fraud by the company and certain executives, with investors needing to apply as Lead Plaintiff by March 16, 2026, indicating significant legal risks that could tarnish the company's reputation.
- Poor Financial Performance: In Q2 2025, Bath & Body Works reported earnings per diluted share of $0.30, a 55.8% year-over-year decline, with net income dropping to $64 million, down 57.9%, failing to meet the company's prior low-end guidance, highlighting a severe drop in profitability.
- Full-Year Guidance Cut: The company has reduced its full-year earnings guidance to a range of $3.28 to $3.53, reflecting a pessimistic outlook on future performance, which may further weaken investor confidence and negatively impact stock performance.
- Stock Price Volatility: Following the Q3 2025 financial results released on November 20, 2025, Bath & Body Works' stock plummeted by 24.8% to close at $15.82, indicating strong market skepticism regarding its new business strategy and potentially diminishing investor trust in the company's future.
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBWI is 20.14 USD with a low forecast of 15.00 USD and a high forecast of 26.00 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.
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 21.630
Low
15.00
Averages
20.14
High
26.00
Current: 21.630
Low
15.00
Averages
20.14
High
26.00
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.
Bath & Body Works Faces Class Action Lawsuit
- Lawsuit Background: Bath & Body Works is facing a class action lawsuit for alleged securities fraud covering the period from June 4, 2024, to November 9, 2025, aiming to recover losses for affected investors, which could negatively impact the company's reputation and stock price.
- False Statements Allegations: The complaint alleges that the company relied on brand collaborations to mask weak financial results as its strategy of 'adjacencies, collaborations, and promotions' failed to grow the customer base, severely undermining investor confidence in the company's prospects.
- Financial Guidance Missteps: The lawsuit highlights that the company is unlikely to meet its previously issued financial guidance, indicating that the positive statements made by the defendants lacked a reasonable basis, potentially leading to a decline in shareholder value due to lowered future earnings expectations.
- Investor Rights Protection: Affected investors have until March 13, 2026, to request to be appointed as lead plaintiff, with no costs required to participate in the lawsuit, demonstrating the legal team's commitment to protecting investor rights.
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Securities Fraud Class Action Filed Against Bath & Body Works
- Lawsuit Background: On January 29, 2026, Kessler Topaz Meltzer & Check, LLP announced a securities fraud class action against Bath & Body Works (NYSE:BBWI) for investors who purchased securities between June 4, 2024, and November 19, 2025, highlighting significant financial concerns during this period.
- False Statements Allegation: The lawsuit alleges that Bath & Body Works made materially false and misleading statements throughout the class period, failing to disclose adverse facts about its business and operations, which may mislead investors and impact stock performance.
- Strategic Missteps: The complaint indicates that the company's strategy of pursuing
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