Walmart Reports Robust Earnings but Stock Drops on Disappointing Guidance for 2025
Walmart's strong quarterly earnings are overshadowed by a disappointing forecast, revealing potential impacts from upcoming tariffs amid high inflation and consumer spending concerns.
Why Walmart's signal of a slowdown has investors on edge
Straight Arrow News
Walmart rolled through 2024, but challenges appear ahead in 2025
Associated Press
Overview
Walmart reported strong sales of $180.55 billion and adjusted earnings of 66 cents per share. However, its forecast for 2025 fell short of analyst expectations, predicting net sales growth of only 3-4% as challenges like tariffs and inflation loom. The company’s stock dropped nearly 7% following the announcement. Walmart noticed increased shopping by high-income families, partially due to rising inflation. CFO John Rainey warned that potential new tariffs could impact pricing strategies and consumer demand, indicating a challenging retail landscape ahead as economic uncertainties persist.
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Associated Press·4M·FAQ
Walmart reported a revenue of $180.6 billion, up 4.1%, with a gross margin rate increase of 53 basis points. Operating income grew by 8.3%, and eCommerce sales increased by 16% globally. Adjusted EPS was $0.66.
Walmart's stock dropped due to a disappointing forecast for 2025, which predicted net sales growth of only 3-4%. This fell short of analyst expectations, and concerns about tariffs and inflation also contributed to the decline.
CFO John Rainey warned that potential new tariffs could impact pricing strategies and consumer demand, indicating a challenging retail landscape ahead due to economic uncertainties.
Walmart noticed increased shopping by high-income families, partially due to rising inflation.
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