Walmart Stock Drops 6% Following Lower 2025 Profit and Sales Forecast

The retail giant warns of economic uncertainties, including potential tariff impacts and slowing consumer spending, despite strong 2024 performance.

Walmart reported a strong fiscal 2024, with a 4.1% rise in sales and a 20% increase in U.S. e-commerce sales, but its 2025 guidance fell below analysts' expectations.
The company forecasts 2025 sales growth between 3% and 4% and operating income growth of 3.5% to 5.5%, lower than its 2024 growth rates and Wall Street projections.
Walmart executives cited economic uncertainties like potential tariffs and cautious consumer behavior as key reasons for the tempered outlook.
Shares of Walmart fell over 6%, with analysts noting that the retailer’s performance often serves as a barometer for U.S. consumer spending trends.
Despite the challenges, Walmart expressed confidence in its ability to manage tariffs and maintain its low-price strategy, while continuing to attract higher-income shoppers and grow its digital business.