.png)
Walmart has warned that its sales and profits for the upcoming year may not meet Wall Street’s expectations. The company is being cautious due to economic uncertainty and potential new tariffs.
As a result, Walmart’s stock fell by 6%, even though it had reached record highs recently. Other major retailers, including Target and Amazon, also saw their shares dip slightly.
Why Is Walmart Worried?
For the past two years, high interest rates and inflation have made it harder for people in the U.S. to spend money. Additionally, new tariffs from President Donald Trump on Chinese goods—and possible tariffs on products from India, Mexico, and Canada—have raised concerns about higher costs.
"We are only one month into the year, so we are taking a cautious approach," said Walmart’s Chief Financial Officer, John David Rainey. Despite these concerns, he believes U.S. shoppers remain focused on value.
Bigger Picture
Walmart is the first big U.S. retailer to report financial results this year. Its warning about slower consumer spending could indicate challenges for other retailers. Target will report its results on March 4, and analysts expect its sales to drop slightly.