Walmart (WMT) is mostly staying the course with its full year profit outlook despite Trump tariffs being in full effect and economic uncertainty on the rise.
The retail giant said Wednesday it continues to expect first quarter sales growth of 3% to 4%. But it slightly walked back its first quarter operating profit growth guidance for an increase of 0.5% to 2%, citing tariff risk.
“The range of outcomes for Q1 operating income growth has widened due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented,” Walmart noted.
The company added that its annual sales and operating income growth guidance remains unchanged.
On its Feb. 20 earnings release, Walmart guided to annual sales growth of 3% to 4% and adjusted operating profit growth of 3.5% to 5.5%.
Full year EPS — which Walmart didn’t mention its guidance commentary today — was pegged back in February at $2.50 to $2.60.
The Street is currently at $2.63 a share, according to Yahoo Finance data.
Walmart shares fell 2% in pre-market trading. Shares are down by about 9% in the last five trading sessions amid a broader market flight to safety.
The company is holding a meeting with analysts and media to discuss its longer term initiatives. Execs are expected to be peppered with questions about how Walmart plans to navigate tariffs.
Trump’s 104% tariffs on China kicked in on Wednesday, igniting the start of a full on trade war with an important trading partner. China responded today, saying it would increase its reciprocal tariffs on U.S. goods to 84% from 34%.
Levies on imports to the US from the European Union and Japan also rose further today, in addition to sweeping 10% tariffs that began last weekend.
Walmart is caught in the crosshairs.
EvercoreISI retail analyst Greg Melich estimated this week that Walmart imports about $105 billion worth of merchandise. Cost pressure from the tariffs could clip earnings this year three times more than the Street expects currently, Melich said.
This is breaking news and will be updated accordingly.
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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