Walmart, the world’s largest retailer, has withdrawn its financial forecast for the current quarter, citing uncertainty caused by broad new tariffs imposed on imports from China, Vietnam, and other countries.
The company announced Wednesday that it is unsure about its operating profit for the first quarter, as it aims to stay flexible and possibly lower prices to offset the impact of the tariffs. This move follows President Donald Trump’s recent implementation of a 10% tariff on all countries and increased tariffs on many others — with some rates reaching up to 50%. China, a key trading partner, is now facing tariffs of at least 104%.
Despite this uncertainty, Walmart still expects its sales to grow by as much as 4% this quarter and has reaffirmed its full-year sales and profit outlook. The company says it is confident in its ability to manage the effects of tariffs and a potential economic slowdown.
“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” said CFO John David Rainey.
Investors appear optimistic about Walmart’s prospects — the stock rose 3% in early trading Wednesday. Analysts agree that Walmart’s massive scale, wide supplier network, and strong supply chain could help it keep prices competitive and gain an edge over rivals.
“Walmart is using its size, tech strengths, and supply chain expertise to lead through this challenging period,” said Greg Melich of Evercore ISI. While Walmart isn’t immune to economic pressures, he believes the company is better equipped than most to weather the storm.
