Case Background:
This is a federal securities fraud class action lawsuit on behalf of investors who purchased or otherwise acquired Bath & Body Works, Inc. (“Bath & Body Works”) (NYSE: BBWI) securities between June 4, 2024 and November 19, 2025, inclusive (the “Class Period”).
The Class Period begins on June 4, 2024, when Bath & Body Works touted that the company’s first quarter 2024 financial results were driven, in part, by a "shifted fiscal calendar" and purportedly negatively impacted merely by "weaker than expected results from certain international markets." That same day, Bath & Body Works published an investor presentation highlighting its financial results for the first quarter 2024 that affirmed Bath & Body Works’ alleged financial results and further touted that the results were driven by, in part, “strong floorsets" and "strong execution within our fulfilment operations."
On August 28, 2025, before the market opened, Bath & Body Works released its second quarter 2025 financial results, which reported a decline of 55.8% year-over-year in its earnings per diluted share. Bath & Body Works further reported a decline in net income of 57.9% year-over-year, and announced it was cutting its full year guidance for earnings per diluted share. On this news, Bath & Body Works’ stock price fell 6.9%.
Then, on November 20, 2025, Bath & Body Works reported revenue declined 1% year-over-year, missing the company’s guidance for the quarter. Net income also declined, falling 26% to $77 million. Furthermore, Bath & Body Works announced it was slashing full year guidance for net sales, and cut expected earnings per diluted share. That same day, Bath & Body Works 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 Bath & Body Works had become “overly reliant on deeper and more frequent promotions to drive growth.” Finally, Bath & Body Works announced it would exit certain adjacencies and instead focus on core categories. On this news, Bath & Body Works’ stock price fell 24.8%.
The complaint 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 that: (1) Bath & Body Works’ strategy of pursuing “adjacencies, collaborations and promotions” was not growing the customer base and/or delivering the level of growth in net sales as touted; (2) as Bath & Body Works’ strategy of “adjacencies, collaborations and promotions” faltered, Bath & Body Works relied on brand collaborations “to carry quarters” and obfuscate otherwise weak underlying financial results; (3) as a result, Bath & Body Works was unlikely to meet its own previously issued financial guidance; (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On March 14, 2026, Motions to Appoint Lead Plaintiffs and Lead Counsel were filed. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.