


Walmart Maintains Sales Outlook Amid Tariff Challenges
Walmart reaffirms full-year sales growth despite withdrawing first-quarter profit guidance due to rising tariffs and economic uncertainty.
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Overview
Walmart stands firm on its full-year sales and operating income forecast, predicting 3-4% growth despite withdrawing first-quarter profit guidance amid escalating tariffs from the Trump administration. The retailer aims to maintain pricing flexibility for customers as other businesses slow orders and hiring due to similar tariff pressures. With over two-thirds of its merchandise sourced domestically, Walmart believes it can navigate through these economic challenges effectively, even as it faces potential impacts on lower- and middle-income shoppers who have been affected by inflation.
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Analysis
- Walmart maintains its full-year sales outlook despite pulling back on first-quarter profit guidance due to tariff uncertainties.
- The company sees potential opportunities to gain market share against competitors, leveraging its scale and supplier network.
- Concerns are raised about the impact of new tariffs on lower- and middle-income shoppers, particularly in the context of rising inflation.
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FAQ
Two-thirds of Walmart's merchandise is sourced in the U.S.
Walmart withdrew its first-quarter operating income guidance due to a widened range of outcomes caused by less favorable category mix, higher casualty claims expense, and the need to maintain pricing flexibility amid tariffs.
Walmart aims to mitigate the impact of tariffs by asking suppliers to reduce prices and maintaining flexibility to invest in pricing strategies, thereby preserving its reputation for low prices.
Walmart expects first-quarter sales growth to be between 3% and 4%.
History
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