Walmart Inc (NYSE:WMT) stock fell 1.59% (As on February 21, 11:23:09 AM UTC-4, Source: Google Finance) after the company forecast sales and profit for the fiscal year ending January 2026 below Wall Street estimates, suggesting the world’s largest retailer expects inflation-weary consumers to pull back after several quarters of solid growth. Walmart’s forecast hints at how the retailer expects to fare under President Donald Trump’s additional tariffs on goods made in China, and the threat of 25 per cent tariffs on products made in Mexico and Canada. Despite issuing disappointing guidance, Walmart sees US shoppers as “resilient” and focused on value. He said the retailer did not include an assumption of new US tariffs in its guidance, but said Walmart can manage any new duties well, without offering details. Walmart appeared to remain unscathed with total US comparable sales rising 4.6 per cent in the fourth quarter, with January being its strongest month for sales, Walmart said. That surpassed analysts’ estimates of a 4.15 per cent increase.

Moreover, General merchandise sales rose in the low-single-digits, while grocery sales rose in the mid-single digits, helped in part by higher sales of its in-house brands. The company also noted higher sales of GLP-1 drugs in the quarter. Overall, transactions, excluding fuel, rose 2.8 per cent at its more than 4,600 US stores with average checks at the till rising 1.8 per cent. US e-commerce sales rose 20 per cent, the retailer said, adding that one-third of shoppers elected to have deliveries in three hours or less.

WMT in the fourth quarter of FY 25 has reported the adjusted earnings per share of 66 cents, beating the analysts’ estimates for the adjusted earnings per share of 64 cents. The company had reported the adjusted revenue growth of 4.1 percent to $180.6 billion in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $180.01 billion, according to a survey of analysts by LSEG.

The company forecast adjusted earnings per share for the fiscal year ending January 2026 in the range of $2.50 to $2.60, below analysts’ expectations of $2.76, according to data compiled by LSEG. Walmart said annual sales are expected to rise between 3 per cent and 4 per cent. Analysts had expected 4 per cent growth. The sales outlook includes a 20 basis point impact from the negative effect of an additional day in the leap year of 2024, and a boost of 20 basis points from the acquisition of smart-television manufacturer Vizio. For the first quarter it expects consolidated net sales to rise between 3 per cent and 4 per cent, compared to expectations of 3.3 per cent growth.