Walmart () predicted a lower profit than expected for the full year and suggested that the uncertain economic environment is weighing on the world’s largest retailer.
The company said it expects adjusted profits to be between $ 2.50 and $ 2.60 per share, below average than Wall Street analysts were projecting. The shares fell up to 9.5% in the initial negotiations in New York.
Based in Bentonville, Arkansas, Walmart has historically given guidances Conservatives, but investors expectations are high after an increase of 77% in the price of stocks in the last 12 months.
At a conference with analysts on Thursday (20), John David Rainey, the company’s chief financial officer, described the guidance As consistent with previous years, but acknowledged that “there are still uncertainties related to consumer behavior and global economic and geopolitical conditions.”
For next year, Walmart expects general growth in net sales in the 3% range to 4%, which is lower than the 5% growth that the company has seen in the last fiscal year.
Rainey said in an interview that guidance It does not include the potential impact of tariffs, given the unpredictable character of these rates. Walmart imports food from Mexico and general goods, such as microwave, from China.
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“We will work with suppliers. Let’s focus on our own brands ”to keep prices low, he said.
The retailer, known for his low prices, has benefited in recent years with consumers prioritizing essential items such as food after years of inflation. In the most recent quarter, the company said it saw growth in market share, especially homes that earn more than $ 100,000 per year.
Walmart is the first major retailer to publicize quarterly results after the important holiday season. Comparable sales, excluding fuels, rose 4.6% in the US Walmart stores open for at least a year in the quarter ended on January 31, exceeding the expectations of Wall Street analysts.
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“I would describe the consumer as stable,” Rainey said, adding that spending is far from a complete recovery. General goods sales are improving, he said, and the demand of the holiday season was aligned with what the company expected.
Still, operators face a multitude of uncertainties. Tariffs remain a major unknown to retail companies after President Trump temporarily paused rates on Mexico and Canada products and tax additional rates on China. Many consumer companies have not yet incorporated the impact of tariffs on their guidances.
US retail sales fell in January with the weather – including fires in southern California and winter freezes in various parts of the country – probably affecting spending. Meanwhile, basic inflation increased last month due to higher energy and food prices, according to government data. Eggs boosted food inflation, as avian flu limits the offer.
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Home Depot, Target and other companies should disclose results in the coming weeks. Target has increased its guidance sales to the fourth quarter after a better than expected parties season. Target and Costco’s actions fell in the initial negotiations on Thursday, after the release of Walmart results.
Walmart tends to do well during difficult economic periods. This time, the company said its digital business is helping to attract and retain more consumers, including high -income buyers attracted to the convenience of online withdrawal and delivery services. The retailer’s digital operation is also expanding its assortment to include items such as collectibles and second -hand chanel bags that are not available in stores.
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