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.
Smaller sellers of clothing and shoes without massive supply chains rely on Vietnam and China for products, Reuters reported.
Clothing retailers to pump brakes on orders, hiring due to tariffs
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The sector has recorded an annual growth rate of roughly 3% since 2019, and an IBISWorld forecast predicted revenue for grocery stores with international brands would go up to over $64 billion by 2029.
Asian supermarket customers brace for price hikes as Trump tariffs take effect
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Walmart’s stock gained 3% during early trading Wednesday, a sign that investors believe Walmart is better positioned than most companies to handle tariffs.
Walmart sees an opportunity in Trump’s trade war | Business
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Summary
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.
Perspectives
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.