Walmart Inc. Withholds Q1 Profit Outlook Due to Tariff Concerns

In a move that highlights the growing uncertainties in the global market, Walmart Inc. chose not to reaffirm its first-quarter income target this Wednesday. This decision comes as the retail giant prepares for its earnings report on May 15, amidst concerns over new tariffs impacting imports from major suppliers such as China and Vietnam.

CEO Doug McMillon Addresses Market Unpredictability

During Walmart's annual investor meeting, CEO Doug McMillon spoke about the challenges posed by the current market environment. He stressed the company's commitment to cost control, competitive pricing, and efficient inventory management as key strategies to navigate through these uncertain times.

Despite maintaining its annual guidance, Walmart indicated that the first-quarter operating income growth could see a wider range of outcomes. This is attributed to a less favorable category mix, higher casualty claims expenses, and the company's strategic flexibility to invest in pricing as tariffs take effect.

Looking Ahead

Walmart remains optimistic about its first-quarter sales, projecting a 3–4% year-on-year growth. Further insights are anticipated during the upcoming live Q&A session with executives, scheduled for 8 am CT (9 am ET).