Levi & Korsinsky LLP
02/12/2026 | Press release | Distributed by Public on 02/12/2026 08:00
Bath & Body Works in Hot Water: Lawsuit Claims Collabs Masked Sinking Sales
Bath and Body Works told investors it had cracked the code for growth. New categories. New customers. A fresh chapter beyond soaps and candles. Men's products. Hair. Lips. Laundry. Management said these "adjacencies" would fuel the future. But behind the scenes, that story was falling apart.
From June 2024 through 2025, executives kept pitching these new lines as a growth engine. In August 2025, reality hit. Earnings missed. Profits dropped more than 50%. Guidance was cut. The stock slid.
Then came November. Bath and Body Works admitted those adjacencies were not growing the customer base at all. They had distracted from the core business. Promotions were masking weak demand.
Investors were blindsided. Shares collapsed about 25% in a single day. Now, shareholders say they were misled about what was really driving growth. And more investors are stepping forward to join the lawsuit.
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