New York, NY – Bath & Body Works, a popular personal care and home fragrance retailer, experienced a significant drop in its stock prices after issuing a warning about the potential impact of tariffs on its future performance. The company projected a full-year earnings per share between $3.25 and $3.60, with a modest net sales growth of 1% to 3%. This forecast fell short of analysts’ expectations, who were anticipating higher EPS of $3.66 and a 3% sales increase. The warning attributed the lower guidance to the recent imposition of tariffs on goods imported from China, excluding any potential impacts from other tariff changes.

Despite the tariff-related challenges, Bath & Body Works reported strong fourth-quarter results, with earnings per share of $2.09 and sales of $2.79 billion, exceeding forecasts. CEO Gina Boswell emphasized the company’s resilience in facing broader retail sector challenges and expressed confidence in finishing the year on a positive note.

The company’s shares plummeted by 13% in recent trading, reflecting a 25% decline in value over the past 12 months. The uncertainty surrounding tariffs and their potential consequences on consumer spending have impacted Bath & Body Works’ stock performance significantly.

In a separate development, President Donald Trump announced the implementation of tariffs on products from Canada and Mexico, set to take effect on March 4. The tariffs include a 25% tax on imports from Canada and Mexico and a 10% tariff on Canadian oil. Additionally, Trump revealed plans to double the existing tariff on Chinese goods, adding an extra 10% to the current 10% tariff rate imposed earlier in February.

The White House’s tariff strategy aims to address concerns about drug smuggling, particularly of fentanyl, from China through Mexico and Canada. The administration believes that imposing tariffs will not only curb drug trafficking but also create job opportunities in the manufacturing sector, leading to a more balanced budget.

Economists have expressed concerns about the potential impact of these tariffs on inflation and economic growth, as higher prices on a wide range of products could slow down consumer spending. Recent surveys indicate a rise in consumer expectations of future inflation due to apprehensions about the tariff policies.

Investors witnessed Warner Bros. Discovery’s shares surge after the company unveiled an optimistic outlook for its streaming services, offsetting lower-than-expected fourth-quarter results. The entertainment giant reported a net loss of $0.20 per share on revenue of $10.03 billion, missing analysts’ projections of a profit of $0.02 per share and $10.22 billion in revenue.

Warner Bros. Discovery outlined plans to expand its Max streaming service to more countries, aiming to reach a target of at least 150 million global subscribers by the end of 2026. The company’s strategic shift, as announced in December to split its operations into television networks and film studios, is expected to be completed in the second quarter.

As the market reacts to these developments, investors are closely monitoring key support levels for Nvidia’s shares after the company’s better-than-expected quarterly results and strong outlook. The stock initially saw a decline in early trading but remains up by 65% over the past 12 months. Analysts highlight crucial levels that investors should keep an eye on to gauge the stock’s performance in the coming period.