Walmart Withholds Q1 Profit Outlook Due to Tariff Concerns

In a surprising move, Walmart Inc. decided not to reaffirm its first-quarter income target this Wednesday, casting shadows over its upcoming earnings report on May 15. This decision underscores the increasing uncertainties surrounding new tariffs impacting imports from major suppliers, including China and Vietnam.

CEO Addresses Market Unpredictability

During Walmart's annual investor meeting, CEO Doug McMillon highlighted the volatile market conditions. He stressed the company's strategic focus on maintaining cost efficiency, competitive pricing, and effective inventory management to navigate through these challenging times.

Revised Expectations Amid Tariff Implementations

While Walmart has kept its annual guidance unchanged, it noted a broader range of possible outcomes for Q1 operating income growth. Factors such as a less favorable category mix, higher casualty claims expenses, and the need for pricing strategy flexibility in response to tariffs have contributed to this widened outlook.

Despite these challenges, Walmart anticipates a 3–4% year-on-year growth in first-quarter sales. Further insights are expected during the live Q&A session with executives, set for 8 am CT (9 am ET).