Siddharth Cavale
Walmart executives say NEW YORK (Reuters) - Walmart executives say Walmart shoppers are more focused on getting the lowest prices than products made in the U.S., Canada, China or elsewhere.
According to LSEG estimates, Walmart's chain of more than 4,600 U.S. stores may indicate an increase in annual sales when it disclosed its results Thursday.
According to LSEG estimates, Walmart's revenue grew by about 5% to $680.47 billion in the year ended January 31, 2025.
But all the ways some Walmart investors feared of its cheap selling price put retailers in trouble under President Donald Trump as he printed new tariffs on Chinese-made goods and threatened Products made in India, Mexico and Canada.
Walmart is one of the first major retailers in the U.S. to report fourth-quarter results, including sales during the holiday season.
The retailer serves as a barometer of consumer spending due to its size and leading market share in the U.S. retail industry. Investors are paying close attention to tips on the health of the U.S. economy.
Walmart is also the largest importer of container goods in the United States, with 40% of its sales being sold by clothing, electronics and toys (electronics and toys), mainly from China, India and other countries with new Trump tariffs.
This year, Wall Street analysts expect Walmart's revenue growth to slow to 4%, suggesting anxiety about tariffs.
A Walmart spokesman declined to comment, saying the company was in a quiet period before its earnings report.
Brian Mulberry, client portfolio manager at Walmart investor Zacks Investment Management, said he would view Walmart’s internal value value as a YARDSTICK that measures the impact of tariffs. Mulberry notes that China is the source of more than 70% of household and universal non-food products that sell electronics, accessories, plastic food containers and sporting goods.
“We will focus on any pressure on tremendous value and other internal brands as they are responsible for adding positive growth to the bottom line,” Mulbury said.
Walmart’s adverse impact on our business and financial performance.”
Investors such as Walmart investor, Huntington's research director of private banking, including Randy Hare, are worried about whether the results will show an "adverse impact" on their business.
“We are listening attentively to their guidance,” Hare said, citing Walmart’s success in maintaining profit growth over the past few years, including periods of high inflation and port strikes.
Walmart maintains its profit margins by reducing its reliance on China, increasing warehouse automation and relocating white-collar jobs to low-cost areas such as Arkansas.
Walmart also promises to invest $350 billion over 10 years to source products from U.S.-made, growing or assembled suppliers to save costs by reducing lead times and keeping shelf stocks better.
“I don’t want prices to rise to put pressure on sales growth, so a balanced approach is needed,” Hare said, explaining that he wants Walmart to share tariff fees with suppliers and manufacturers.
Walmart's current sales growth of 4% exceeded its competitor's target, which provides most of its inventory internationally, with China being its biggest source, S&P analysts wrote in a note.
According to LSEG estimates, Target's annual gross revenue report reported results for the holiday quarter on March 4, with an estimated decline of about 1% in 2024 and 2.5% in 2025.
UBS analyst Michael Lasser raised Walmart stock price target to $113 last week from $100, saying that despite Trump's election, inflationary pressure on new tariffs and immigration policies , but Walmart’s daily low-price strategy may drive shoppers to spend more there.
"We believe Walmart will be one of the retailers that mitigate or manage tariffs through price leadership, purchase rights and global procurement capabilities," Lather said.
(Reported by Siddharth Cavale in New York and Savyata Mishra in Bangalore; Edited by David Gregorio)