As one of the first major US retailers to shed light on the crucial holiday quarter and the current year, Walmart’s forecast hints at how the retailer expects to fare under Donald Trump’s additional tariffs on goods made in China, and the threat of 25% tariffs on products made in Mexico and Canada.
Walmart’s lower than expected guidance is a warning that US consumer spending is slowing, said Brian Mulberry, client portfolio manager at Zacks Investment Management, a Walmart investor.
Walmart on Thursday forecast sales and profit for its latest fiscal year below Wall Street estimates, suggesting that the world’s largest retailer expects inflation-weary consumers to pull back after several quarters of solid growth.
He said the retailer did not include an assumption of new US tariffs in its guidance, but said Walmart can manage any new duties well, without offering details.
Despite issuing disappointing guidance, Walmart sees US shoppers as “resilient” and focused on value, its chief financial officer, John David Rainey, said on a post-earnings call.
