Walmart Adjusts Q1 Expectations as Tariff Concerns Loom

In a surprising move, Walmart Inc. decided against reaffirming its first-quarter income target this Wednesday, casting shadows over its upcoming earnings report on May 15. This decision underscores the increasing unpredictability in the market, fueled by new tariffs impacting imports from major suppliers such as China and Vietnam.

CEO McMillon Addresses Market Volatility

During Walmart's annual investor meeting, CEO Doug McMillon highlighted the company's strategic focus amidst these uncertain times. "Our priorities remain clear: controlling costs, maintaining price competitiveness, and managing inventory efficiently," McMillon stated. Despite maintaining its annual guidance, Walmart pointed out that the first-quarter operating income growth faces a broader range of outcomes. Factors include a less favorable category mix, higher casualty claims expenses, and the need for flexibility in pricing strategies as tariffs take effect.

Sales Growth Expectations Remain Steady

Amid these adjustments, Walmart continues to project a 3–4% year-on-year growth in first-quarter sales. Stakeholders and interested parties can look forward to more detailed insights during the live Q&A session with executives, set for 8 am CT (9 am ET).