Wexner's Ties to Epstein Under Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy BBWI?
Source: CNBC
- Investigation Launched: Wexner's deposition began on September 19 in Ohio behind closed doors, following the DOJ's release of extensive Epstein-related files that revealed new connections between him and major figures in business and politics, potentially further damaging his reputation.
- Financial Ties Exposed: Wexner had granted Epstein power of attorney over his finances, a relationship that has drawn public scrutiny, especially after Epstein's arrest for sex trafficking, with Wexner expressing embarrassment at being 'taken advantage of,' which could impact his business credibility.
- Increased Political Pressure: The House Oversight and Government Reform Committee issued subpoenas to Wexner and other Epstein associates with bipartisan support, indicating strong interest in his financial dealings, which may lead to deeper investigations and legal repercussions.
- Funding Sources Under Scrutiny: California Representative Garcia noted that Wexner was Epstein's largest benefactor, with much of Epstein's wealth stemming from Wexner, raising concerns that could trigger further scrutiny of Wexner's business activities and influence future business decisions.
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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: 22.430
Low
15.00
Averages
20.14
High
26.00
Current: 22.430
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.
- Profit Decline: Bath & Body Works reported a fourth-quarter net profit of $403 million, or $1.99 per share, down from $453 million and $2.09 per share last year, indicating a weakening in the company's profitability.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $415 million, or $2.05 per share, which, while slightly above expectations, still fails to offset the overall profit decline.
- Revenue Decrease: The company's fourth-quarter revenue fell to $2.724 billion, a 2.3% decrease from $2.788 billion last year, reflecting weakened market demand and increased competition.
- Future Guidance: The company provided a cautious EPS guidance range of $0.24 to $0.30 for the next quarter, indicating management's careful outlook on future performance, which may impact investor confidence.
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- Legal Investigation: Faruqi & Faruqi LLP is investigating potential claims against Bath & Body Works, Inc. for investors who purchased or acquired securities between June 4, 2024, and November 19, 2025, indicating possible legal risks for the company.
- Investor Rights Reminder: The firm reminds investors that March 16, 2026, is the deadline to seek the role of lead plaintiff in a federal securities class action, emphasizing the importance of timely action to protect their rights.
- Market Impact: The potential legal implications may pressure Bath & Body Works' stock price, prompting investors to monitor the company's future financial performance and legal developments to assess investment risks.
- Legal Consultation Access: Investors can contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) for more information regarding their legal rights.
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- Q4 Sales Performance: Bath & Body Works reported net sales of $2.724 billion for Q4 2025, down 2% year-over-year, indicating increased market competition and reflecting challenges in the brand modernization process.
- Earnings Per Share: The company posted earnings per diluted share of $1.99 for Q4, down from $2.09 last year, although adjusted earnings were $2.05, demonstrating maintained profitability amid ongoing transformation efforts.
- 2026 Financial Guidance: For fiscal 2026, the company forecasts a net sales decline of 4.5% to 2.5%, with earnings per diluted share expected between $3.00 and $3.25, highlighting uncertainty in future market conditions while indicating strategic adjustments to address challenges.
- Share Repurchase Activity: In fiscal 2025, the company repurchased 15.1 million shares for $400 million, aiming to bolster shareholder confidence and enhance earnings per share despite facing sales declines.
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- Strong Earnings Report: Bath & Body Works reported a Q4 non-GAAP EPS of $2.05, beating expectations by $0.28, indicating robust profitability despite a 2.5% year-over-year revenue decline to $2.72 billion, which exceeded market expectations by $110 million.
- 2026 Guidance: The company forecasts a net sales decline of 4.5% to 2.5% for 2026, with earnings per diluted share expected between $3.00 and $3.25, and adjusted EPS between $2.40 and $2.65, slightly below the consensus of $2.59, reflecting uncertainty in future growth.
- Q1 Forecast: For Q1 of fiscal 2026, net sales are expected to decline between 4% to 6% compared to $1.424 billion in Q1 2025, indicating weak market demand, although EPS is projected to rise significantly to between $0.84 and $0.90 from $0.49 in the prior year.
- Stock Price Reaction: Following the earnings release, Bath & Body Works shares rose by 2.5%, reflecting investor confidence in the company's recovery plans, despite a still pessimistic near-term outlook.
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- Sales Decline: Bath & Body Works reported a 2% drop in holiday quarter sales to $2.72 billion, indicating challenges in the retail environment, yet the company is focused on enhancing brand identity and market competitiveness.
- Operating Income Decrease: Operating income fell to $599 million from $678 million last year, reflecting the challenges faced during the transformation process while also demonstrating the company's commitment to future innovation.
- Cautious Future Outlook: The company anticipates a sales decline between 4.5% and 2.5%, with adjusted EPS expected to range from $2.40 to $2.65, below the $2.60 consensus, indicating multiple challenges to overcome in the short term.
- Stock Price Rebound: Despite the earnings decline, Bath & Body Works shares rose 2.7% in premarket trading to $23.03, reflecting market confidence in its transformation plan, while the short interest remains at 6.6% of the total float.
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- Stock Market Movement: Stock futures were showing slight increases on Wednesday.
- Investor Sentiment: Investors are assessing the potential for the U.S.-Iran conflict to escalate into a prolonged war.
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