Walmart, the world’s largest retailer, has forecast slower sales growth for the coming year, citing ongoing global economic uncertainty. Despite a strong holiday shopping season driven by consumers seeking value and convenience, the company has revised its projections downward, anticipating global sales to increase between 3% and 4%, compared to last year’s 5% growth. This falls short of analysts’ expectations of 4% growth, contributing to a decline in Walmart’s share price by 6.1% in morning trading on the New York Stock Exchange.
John Rainey, Walmart’s Chief Financial Officer, noted the challenges of operating in a dynamic economic landscape. “We’ve been navigating an unpredictable environment for several years, and this year appears to be no different. While we assume a relatively stable macroeconomic climate, we recognize ongoing uncertainties related to consumer behavior and broader economic and geopolitical conditions.”
Despite these concerns, Walmart remains optimistic about its ability to adapt. CEO Doug McMillon stated that the company has not incorporated potential tariff increases proposed by President Trump into its guidance, expressing confidence in Walmart’s ability to manage such changes effectively.
Founded in 1962 by Sam Walton in Rogers, Arkansas, Walmart has grown to over 10,750 stores across 19 countries, serving approximately 270 million customers weekly. Its latest financial report for the fourth quarter, ending January, revealed a 4.1% revenue increase to $180.6 billion, driven by a 16% rise in global e-commerce sales. This growth was largely attributed to expanded in-store pickup, delivery services, and its thriving US marketplace for third-party sellers.
However, Walmart’s net income declined by 4.4% to $5.3 billion in the same period. The retailer identified households earning six-figure incomes as key drivers of market share growth, with strong demand for seasonal merchandise, automotive, and home products. Grocery sales also saw mid-single-digit growth, buoyed by increased purchases of Walmart’s private-label brands.
Over the past two years, Walmart has observed a shift in consumer spending, with more emphasis on grocery and health-related items rather than general merchandise, a trend largely attributed to prolonged inflationary pressures. Nevertheless, McMillon emphasized Walmart’s competitive advantages: “We continue to gain market share with our everyday low prices, expanding product assortment, and an e-commerce platform that delivers faster than ever. Our business remains strong, and our inventory levels are well-managed.”
Rainey echoed this sentiment, asserting that US customers remain resilient. “We’re seeing consistent consumer behaviors, with shoppers prioritizing value and convenience. Our focus on efficiency and accessibility continues to drive growth.”
As Walmart adjusts to evolving economic conditions, the retail giant remains committed to meeting consumer needs through competitive pricing, expanded product offerings, and enhanced digital shopping experiences.