Bath & Body Works Investor Sues After 2025 Sales Outlook Slash

Bath & Body Works Inc. misled investors about the success of its adjacent products and promotions strategy before lowering its full-year 2025 sales guidance and announcing a turnaround plan, a proposed class action said.

The retailer had touted these products for men, lips, hair, and laundry throughout 2024 and 2025 as drivers for growth, said the complaint filed Monday. But Bath & Body Works and top executives failed to alert shareholders that its strategy chasing these adjacencies, partnerships, and promotions wasn’t growing its customer base, and that the home products company had used collaborations to hide otherwise weak financial results, ...