Faruqi & Faruqi Investigates Bath & Body Works (BBWI) Claims
On January 15, 2026, Faruqi & Faruqi, LLP announced its investigation into potential securities claims against Bath & Body Works, Inc. (NYSE: BBWI). The firm is encouraging investors who suffered losses related to their Bath & Body Works investments to discuss their options. The deadline for seeking the role of lead plaintiff in a federal securities class action is set for March 16, 2026.
Background on the Investigation
Faruqi & Faruqi, a prominent national securities law firm with a history of recovering substantial funds for investors, is analyzing claims following allegations that Bath & Body Works and its executives may have violated federal securities laws. Specific accusations include:
- The company's strategy of pursuing “adjacencies, collaborations, and promotions” did not effectively grow the customer base or achieve the projected net sales growth.
- As their initial strategy faltered, Bath & Body Works relied on collaborations to mask weak financial performance.
- The company failed to meet its previously issued financial guidance, impacting its credibility and stock performance.
- Defendants' positive statements regarding the company’s operations and prospects lack a reasonable basis, misleading investors.
Recent Financial Performance
In a recent statement dated November 20, 2025, Bath & Body Works reported disappointing third-quarter financial results. The company experienced a 1% year-over-year decline in revenue, falling short of expectations that projected 1–3% growth. Additionally, net income dropped by 26% to $77 million. Notably, the company's full-year earnings per diluted share outlook was revised sharply downward, reduced from a range of $3.28 to $3.53 to “at least $2.83.”
During an investor presentation on the same day, Bath & Body Works acknowledged that its prior strategies had failed to effectively grow its customer base. The company admitted to an overreliance on promotions and collaborations, significantly decreasing investment in core areas of the business.
Impact on Stock Price
Following the adverse financial disclosures, shares of Bath & Body Works saw a significant decline, plummeting $5.22 or 24.8%, to a closing price of $15.82 on November 20, 2025. This sharp decrease highlights investor concerns regarding the company’s future financial stability.
Role of Lead Plaintiff
The court-appointed lead plaintiff represents the class of affected investors, possessing the largest financial interest and directing the litigation. Investors in the class may choose to seek this role through counsel or remain absent members. Importantly, participation in the class action will not impact an individual's potential recovery.
Call for Information
Faruqi & Faruqi encourages anyone with relevant information about Bath & Body Works’ conduct to reach out, including whistleblowers and former employees. For more details about the class action, visit www.faruqilaw.com/BBWI or contact partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310).