World’s largest retailer expects inflation-weary consumers to pull back after shares hit record high of $105 last weekWalmart on Thursday forecast sales and profit for its latest fiscal year below Wall Street estimates, suggesting that the world’s largest retailer expects inflation-weary consumers to pull back after several quarters of solid growth.Walmart shares, which had risen about 72% in 2024 and hit a record high of $105 last week, were down 6% in early trading. Shares of its rival retailer Target were down 1.6%, with Amazon 0.9% lower. Continue reading...
Walmart shares fell 6% in early trading on Thursday after the company issued a disappointing forecast, predicting sales and profit below Wall Street estimates for its latest fiscal year. This reflects concerns about slowing U.S. consumer spending, with inflation-weary shoppers expected to pull back. The news also weighed on other retailers, with Target shares down 1.6% and Amazon 0.9% lower. Walmart’s forecast, which did not account for potential new U.S. tariffs on goods from China, Mexico, and Canada, highlights challenges in the retail sector. Despite the weak guidance, the company described U.S. shoppers as "resilient" and focused on value. The decline in Walmart shares, following a 72% rise in 2024, underscores broader worries about economic growth, particularly if job losses follow the soft retail outlook.
