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NEW YORK – As Walmart prepares to report its earnings on Thursday, the retail giant is expected to post record annual sales, even as Wall Street investors worry about the impact of President Donald Trump's tariff policies.
With more than 4,600 U.S. stores, Walmart's revenue rose by approximately 5% to $680.47 billion for the fiscal year ending January 31, 2025, according to LSEG estimates. However, Wall Street analysts project a slowdown in revenue growth this year, reflecting concerns over tariffs on goods from China, India, Mexico, and Canada.
Thorvardur de Shong
Walmart shoppers tend to prioritize low prices rather than the origins of products, contributing to the company's robust performance. As a major indicator of U.S. consumer spending, Walmart stands out as the country's largest importer of containerized goods. A large share of discretionary products, such as electronics, toys, and clothing, is sourced from China and other areas affected by tariffs.
Investors, including Brian Mulberry of Zacks Investment Management, closely monitor Walmart's private-label Great Value brand, which relies on China for over 70% of its non-food household goods. “We will be watching for any pressure on margins, as these in-house brands have been a key contributor to bottom-line growth,” Mulberry said, speaking to Reuters.
Jeffrey Woldt
Walmart has previously warned that shifts in trade policy could negatively impact its business. In its 2024 annual filing, the company stated that "significant changes in tax and trade policies, including tariffs," could hurt financial performance.
Despite these risks, some analysts believe Walmart is well-positioned to navigate the challenges. UBS analyst Michael Lasser recently raised his price target on Walmart’s stock to $113 from $100, citing its pricing power and ability to adapt through global sourcing strategies. “We believe Walmart would be one of the better positioned retailers to mitigate or manage through tariffs, given its price leadership, buying power, and global sourcing capabilities,” Lasser said.
Walmart has also been working to mitigate tariff impacts by reducing reliance on China, increasing warehouse automation, and shifting white-collar jobs to lower-cost locations like Arkansas. Additionally, the company has committed $350 billion over a decade to source products domestically, aiming to cut costs and improve supply chain efficiency.
As Walmart reveals its latest earnings, investors such as Randy Hare of Huntington Private Bank will be looking for guidance on how the retailer plans to manage tariffs in the future. “We are listening intently to see how Walmart navigates these challenges,” Hare said, noting the company’s past success in maintaining margins despite inflation and supply chain disruptions.
