Updated at 7:29 AM EST
Walmart posted stronger-than-expected fourth quarter earnings Thursday but muted near-term forecast send shares in the world’s biggest retailer sharply lower in early premarket trading.
Walmart’s (WMT) said adjusted earnings for the three months ending in January came in at 66 cents a share, up 10% from the same period last year and just ahead of the Wall Street consensus analyst forecast of 64 cents a share.
Group revenues rose 4.1% to $180.55 billion, narrowly topping analysts’ estimates of a $180 billion tally, with U.S. transactions rising 4.3% and overall ticket prices up 1.8%.
U.S. same-store sales were up 4.6%, well ahead of Wall Street’s 4.1% forecast, while online sales also impressed, rising 16% from a year earlier and now representing more than a fifth of overall revenue.
Walmart’s muted near-term outlook has retail shares on the back foot amid concerns over tariff impacts and a pullback in consumer spending.
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Looking into the coming financial year, which ends in January of 2026, Walmart said it sees adjusted earnings in the region of $2.50 to $2.60 per share, well shy of the LSEG estimate of $2.76 per share, with revenue growth in the region of 3% to 4%.
“Our team finished the year with another quarter of strong results. We have momentum driven by our low prices, a growing assortment, and an eCommerce business driven by faster delivery times,” said CEO Doug McMillon.
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“We’re gaining market share, our top line is healthy, and we’re in great shape with inventory,” he added. “We’ll stay focused on growth, improving operating margins, and strengthening ROI as we invest to serve our customers and members even better.”
For the full financial year, Walmart’s overall revenues rose 2.1% to $681 billion, with operating income up 8.6% to $2.3 billion.
The group also boosted its annual dividend by 13%, taking it to 94 cents per share, the largest increase in more than a decade.
Consumers are likely bracing for higher prices, and perhaps limited inventories, on the back of President Donald Trump’s renewed tariff threats, which include levies of 25% on goods from Canada and Mexico as well as 10% duty on imports from China.
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“Business contacts in a number of Districts had indicated that firms would attempt to pass on to consumers higher input costs arising from potential tariffs,” Fed officials said according to minutes of the central bank’s January policy meeting.
January retail sales, meanwhile, fell the most in two years, according to Commerce Department data, while February consumer sentiment based on the benchmark University of Michigan survey fell to the lowest level in seven months.
Walmart shares were marked 8% lower in premarket trading immediately following the earnings release to indicate an opening bell price of $95.865 each.
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