Walmart is set to announce its quarterly earnings before the market opens on Thursday, as investors and economists anticipate insights into the current state of the U.S. consumer and the effects of elevated tariffs on the retail sector.
According to a survey conducted by LSEG, Wall Street anticipates the following figures for the leading retailer’s fiscal first quarter:
- Earnings per share: 58 cents
- Revenue: $165.88 billion
Walmart’s position as the largest grocery retailer in the country provides it a unique advantage in navigating an unpredictable economic climate. Its focus on essential goods helps maintain consistent customer traffic both in-store and online.
As a recognized value retailer, Walmart can attract a broader demographic, including middle- and upper-income consumers seeking lower prices. The retailer has already drawn interest from wealthier shoppers through initiatives like faster delivery options, store renovations, and an expanded range of brands.
Additionally, Walmart has enhanced its profitability by diversifying beyond traditional retail, venturing into advertising, delivery services, and its subscription-based membership program, Walmart+.
At an investor day event last month, Walmart reaffirmed its sales growth outlook for the first quarter, projecting an increase of 3% to 4%. However, the company did expand its operating income forecast without providing specific figures, citing the uncertainty stemming from tariff impacts on profits.
Chief Financial Officer John David Rainey mentioned that the retailer has experienced “a little more sales volatility week to week and frankly, day to day,” indicating expectations for April to be the quarter’s strongest month due to the Easter holiday.
Approximately one-third of Walmart’s U.S. sales are linked to international imports, with China and Mexico being the most significant sources, as noted by Rainey in April.
Recent developments include an increase in tariffs on Chinese goods by the Trump administration, followed by a temporary reduction in these rates for 90 days. On Monday, President Donald Trump announced a new agreement with China that temporarily lowers duties from 145% to 30%, while Beijing reciprocates by reducing tariffs on American goods from 125% to 10%.
Simeon Gutman, a retail analyst at Morgan Stanley, expressed expectations that Walmart and other retailers will take advantage of the 90-day tariff freeze to import necessary goods ahead of the critical back-to-school and holiday shopping seasons.
Given its scale as a low-cost operator, Walmart is positioned advantageously, according to Gutman. This scale facilitates efficient operations, greater negotiating power with suppliers, and the capacity to maintain competitive prices, particularly during periods when consumer spending is more cautious and tariff levels fluctuate.
“Anytime these shocks occur to the system, how can they not be the best off?” Gutman remarked.
However, he also noted the importance for Walmart to demonstrate continued market share gains at a time when consumers are exhibiting hesitance.
As of the market close on Wednesday, Walmart shares have risen approximately 7% since the beginning of the year, outperforming the flat performance of the S&P 500 over the same period. The stock closed at $96.83, positioning the company’s market value at roughly $775 billion.
This is a developing story. Please check back for updates.
