Walmart Maintains Annual Forecast, Shares Rise 5% Amid Tariffs

Walmart has retracted its earnings and revenue guidance for the current fiscal year due to uncertainty surrounding tariffs imposed by the Trump administration on Chinese imports. This rare move signifies the retailer's concern over the potential impact of escalating trade tensions on its performance, as the company noted that about two-thirds of its U.S. sales come from domestic sources, providing some insulation against the tariffs. Despite this, Walmart's shares rose by approximately 5% as investors reacted positively to the company's decision to maintain its full-year sales and income growth forecasts. Walmart's CEO emphasized the company's strategy to keep prices low and manage expenses effectively despite the challenges posed by tariffs. Analysts suggest that while this strategy may help maintain market share, it could negatively impact profit margins. The ongoing trade dispute continues to pose significant risks for Walmart, which relies heavily on imports from China and other Asian countries.