Bath & Body Works Faces Class Action Lawsuit Over Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy BBWI?
Source: Globenewswire
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Bath & Body Works, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by March 16, 2026.
- Poor Financial Results: In Q2 2025, Bath & Body Works reported earnings per diluted share of $0.30, a 55.8% year-over-year decline, with net income falling to $64 million, down 57.9%, missing prior guidance by $0.03.
- Significant Stock Drop: Following disappointing earnings, on August 28, 2025, the company's stock price fell by $2.18, or 6.9%, closing at $29.36, indicating market concerns regarding the company's outlook.
- Guidance Cut: In its Q3 2025 report, Bath & Body Works slashed its full-year earnings guidance from $3.28-$3.53 to at least $2.83, reflecting a pessimistic view on future performance, which led to a further stock decline of $5.22, or 24.8%.
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Analyst Views on BBWI
Wall Street analysts forecast BBWI stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 22.040
Low
15.00
Averages
20.14
High
26.00
Current: 22.040
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 Set to Release Q4 Earnings
- Dividend Yield: Bath & Body Works currently boasts an annual dividend yield of 3.63%, with a quarterly payout of $0.20 per share, totaling $0.80 annually, which attracts investor interest for potential gains.
- Investment Return Calculation: To achieve a monthly dividend income of $500, an investor would need to hold approximately 7,500 shares, equating to an investment of about $165,300, highlighting the reliance on the company's dividends.
- Price Fluctuation Impact: The dividend yield fluctuates with stock price changes; for instance, if the stock price rises from $50 to $60, the yield drops from 4% to 3.33%, indicating market sensitivity to dividends.
- Earnings Report Expectations: Analysts anticipate Bath & Body Works will report earnings of $1.77 per share, down from $2.09 in the previous year, with quarterly revenue expectations of $2.61 billion, reflecting the company's profitability challenges.
See More
Market Volatility and Honeywell Spin-Off Plan
- Market Volatility: The S&P 500 and Nasdaq experienced significant declines of 2.5% and 2.7% respectively at their lows on Tuesday due to ongoing concerns over the Iran war and rising oil prices, but managed to recover to approximately 1% down in late trading, indicating market resilience.
- Oil Price Retreat: Following reports that the U.S. is considering military aid to facilitate shipping through the Strait of Hormuz, oil prices dropped from their highs, which may alleviate inflation concerns and reflects the government's awareness of surging oil prices.
- Honeywell Spin-Off: Honeywell filed its Form 10 registration for the planned spin-off of its aerospace division, which is set to trade under the ticker “HONA” in Q3, marking a significant milestone that could enhance its market valuation and operational focus.
- Investor Day Event: Honeywell Aerospace will host an Investor Day on June 3 to showcase its organic growth profile and strategic priorities, which is expected to attract investor interest and enhance market awareness of its business developments.
See More
Bath & Body Works Faces Class Action Lawsuit Over Securities Fraud
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Bath & Body Works, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by March 16, 2026.
- Poor Financial Results: In Q2 2025, Bath & Body Works reported earnings per diluted share of $0.30, a 55.8% year-over-year decline, with net income falling to $64 million, down 57.9%, missing prior guidance by $0.03.
- Significant Stock Drop: Following disappointing earnings, on August 28, 2025, the company's stock price fell by $2.18, or 6.9%, closing at $29.36, indicating market concerns regarding the company's outlook.
- Guidance Cut: In its Q3 2025 report, Bath & Body Works slashed its full-year earnings guidance from $3.28-$3.53 to at least $2.83, reflecting a pessimistic view on future performance, which led to a further stock decline of $5.22, or 24.8%.
See More
Class Action Lawsuits Filed for Multiple Companies
- CoreWeave Lawsuit: Shareholders of CoreWeave, Inc. have filed a class action lawsuit due to false statements made between March 28 and December 15, 2025, alleging that the company overstated its ability to meet customer demand, which could materially impact revenue and lead to investor losses.
- Bath & Body Works Issues: Shareholders of Bath & Body Works, Inc. have initiated a lawsuit for the period from June 4, 2024, to November 19, 2025, claiming the company failed to disclose that its growth strategy was not attracting customers, potentially leading to an inability to meet financial guidance and misleading investors about the company's prospects.
- Smart Digital Group Risks: Smart Digital Group Limited shareholders have filed a lawsuit for false statements made between May 5 and September 26, 2025, alleging the company did not disclose risks related to market manipulation and fraud, putting its securities at unique risk of trading suspension, with investor losses exceeding $1 million.
- Legal Consultation Advice: The Law Offices of Frank R. Cruz remind investors that those suffering losses during the specified periods can contact the firm to understand their legal rights and ensure their interests are protected in the class actions.
See More
Bath & Body Works Set to Announce Q4 Earnings on March 4
- Earnings Announcement: Bath & Body Works (BBWI) is set to release its Q4 earnings on March 4 before market open, with consensus EPS estimate at $1.77, reflecting a 15.3% year-over-year decline, and revenue estimate at $2.61 billion, down 6.5% year-over-year, indicating challenges ahead for the company.
- Historical Performance: Over the past two years, BBWI has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating a degree of stability and market confidence in its financial performance.
- Estimate Revisions: In the last three months, EPS estimates have seen 9 upward revisions and 1 downward revision, while revenue estimates have experienced 8 upward revisions and 2 downward revisions, reflecting analysts' mixed views and adjustments regarding the company's future performance.
- Amazon Store Launch: Bath & Body Works has officially launched a storefront on Amazon, marking a significant expansion into the e-commerce space, aimed at enhancing sales and brand visibility through online channels.
See More
Faruqi & Faruqi Investigates Bath & Body Works Securities Claims
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities claims against Bath & Body Works (NYSE: BBWI), specifically encouraging investors who purchased shares between June 4, 2024, and November 19, 2025, to contact them before the March 16, 2026 deadline to seek lead plaintiff status.
- Disappointing Financial Results: On November 20, 2025, Bath & Body Works reported a 1% year-over-year decline in revenue for Q3, missing its prior guidance of 1-3% growth, and a 26% drop in net income to $77 million, indicating a failure in the company's strategic execution.
- Acknowledgment of Strategic Failures: During an investor presentation, the company admitted that its strategy of
See More
Bath & Body Works Set to Release Q4 Earnings
- Dividend Yield: Bath & Body Works currently boasts an annual dividend yield of 3.63%, with a quarterly payout of $0.20 per share, totaling $0.80 annually, which attracts investor interest for potential gains.
- Investment Return Calculation: To achieve a monthly dividend income of $500, an investor would need to hold approximately 7,500 shares, equating to an investment of about $165,300, highlighting the reliance on the company's dividends.
- Price Fluctuation Impact: The dividend yield fluctuates with stock price changes; for instance, if the stock price rises from $50 to $60, the yield drops from 4% to 3.33%, indicating market sensitivity to dividends.
- Earnings Report Expectations: Analysts anticipate Bath & Body Works will report earnings of $1.77 per share, down from $2.09 in the previous year, with quarterly revenue expectations of $2.61 billion, reflecting the company's profitability challenges.
See More
Market Volatility and Honeywell Spin-Off Plan
- Market Volatility: The S&P 500 and Nasdaq experienced significant declines of 2.5% and 2.7% respectively at their lows on Tuesday due to ongoing concerns over the Iran war and rising oil prices, but managed to recover to approximately 1% down in late trading, indicating market resilience.
- Oil Price Retreat: Following reports that the U.S. is considering military aid to facilitate shipping through the Strait of Hormuz, oil prices dropped from their highs, which may alleviate inflation concerns and reflects the government's awareness of surging oil prices.
- Honeywell Spin-Off: Honeywell filed its Form 10 registration for the planned spin-off of its aerospace division, which is set to trade under the ticker “HONA” in Q3, marking a significant milestone that could enhance its market valuation and operational focus.
- Investor Day Event: Honeywell Aerospace will host an Investor Day on June 3 to showcase its organic growth profile and strategic priorities, which is expected to attract investor interest and enhance market awareness of its business developments.
See More
Bath & Body Works Faces Class Action Lawsuit Over Securities Fraud
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Bath & Body Works, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by March 16, 2026.
- Poor Financial Results: In Q2 2025, Bath & Body Works reported earnings per diluted share of $0.30, a 55.8% year-over-year decline, with net income falling to $64 million, down 57.9%, missing prior guidance by $0.03.
- Significant Stock Drop: Following disappointing earnings, on August 28, 2025, the company's stock price fell by $2.18, or 6.9%, closing at $29.36, indicating market concerns regarding the company's outlook.
- Guidance Cut: In its Q3 2025 report, Bath & Body Works slashed its full-year earnings guidance from $3.28-$3.53 to at least $2.83, reflecting a pessimistic view on future performance, which led to a further stock decline of $5.22, or 24.8%.
See More
Class Action Lawsuits Filed for Multiple Companies
- CoreWeave Lawsuit: Shareholders of CoreWeave, Inc. have filed a class action lawsuit due to false statements made between March 28 and December 15, 2025, alleging that the company overstated its ability to meet customer demand, which could materially impact revenue and lead to investor losses.
- Bath & Body Works Issues: Shareholders of Bath & Body Works, Inc. have initiated a lawsuit for the period from June 4, 2024, to November 19, 2025, claiming the company failed to disclose that its growth strategy was not attracting customers, potentially leading to an inability to meet financial guidance and misleading investors about the company's prospects.
- Smart Digital Group Risks: Smart Digital Group Limited shareholders have filed a lawsuit for false statements made between May 5 and September 26, 2025, alleging the company did not disclose risks related to market manipulation and fraud, putting its securities at unique risk of trading suspension, with investor losses exceeding $1 million.
- Legal Consultation Advice: The Law Offices of Frank R. Cruz remind investors that those suffering losses during the specified periods can contact the firm to understand their legal rights and ensure their interests are protected in the class actions.
See More
Bath & Body Works Set to Announce Q4 Earnings on March 4
- Earnings Announcement: Bath & Body Works (BBWI) is set to release its Q4 earnings on March 4 before market open, with consensus EPS estimate at $1.77, reflecting a 15.3% year-over-year decline, and revenue estimate at $2.61 billion, down 6.5% year-over-year, indicating challenges ahead for the company.
- Historical Performance: Over the past two years, BBWI has beaten EPS estimates 75% of the time and revenue estimates 63% of the time, demonstrating a degree of stability and market confidence in its financial performance.
- Estimate Revisions: In the last three months, EPS estimates have seen 9 upward revisions and 1 downward revision, while revenue estimates have experienced 8 upward revisions and 2 downward revisions, reflecting analysts' mixed views and adjustments regarding the company's future performance.
- Amazon Store Launch: Bath & Body Works has officially launched a storefront on Amazon, marking a significant expansion into the e-commerce space, aimed at enhancing sales and brand visibility through online channels.
See More
Faruqi & Faruqi Investigates Bath & Body Works Securities Claims
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities claims against Bath & Body Works (NYSE: BBWI), specifically encouraging investors who purchased shares between June 4, 2024, and November 19, 2025, to contact them before the March 16, 2026 deadline to seek lead plaintiff status.
- Disappointing Financial Results: On November 20, 2025, Bath & Body Works reported a 1% year-over-year decline in revenue for Q3, missing its prior guidance of 1-3% growth, and a 26% drop in net income to $77 million, indicating a failure in the company's strategic execution.
- Acknowledgment of Strategic Failures: During an investor presentation, the company admitted that its strategy of
See More
