Walmart reported a strong fourth quarter with revenue of $180.55 billion, a 3.8% increase from the previous year, and adjusted earnings per share of 66 cents, exceeding expectations by two cents. The company's e-commerce segment continued to perform well, with sales rising 20% in the U.S. However, Walmart's forecast for 2025 was less optimistic, with a projected net sales growth of 3% to 4% and adjusted earnings per share between $2.50 and $2.60, falling short of Wall Street expectations. CFO John David Rainey emphasized the challenges posed by tariffs on imports from Mexico and Canada, acknowledging that Walmart would not be "completely immune" to these economic pressures [1].

The broader economic landscape, including tariffs and inflation, is contributing to Walmart's cautious outlook. The retailer has been operating in a tariff environment for several years, and new tariffs could further impact its low-price strategy. Walmart's reliance on U.S.-produced goods helps mitigate some risks, but the company is still susceptible to changes in trade policy. Analysts warn that increased tariffs could lead to higher prices, affecting consumer spending and Walmart's sales. As Walmart CEO Doug McMillon noted, "Customers and members are going to be looking for value. They’re going to be looking for convenience" [3].

Walmart's stock decline has contributed to a broader market retreat, with the S&P 500 and Dow Jones both experiencing drops. Analysts remain divided on Walmart's future prospects. While some see the stock dip as a buying opportunity, others caution that ongoing economic challenges could hinder growth. The potential for job losses and reduced consumer spending are significant concerns. In the words of Zacks Investment Management's Brian Mulberry, "If Walmart’s soft guidance is followed by a decline in jobs, it would be a strong signal that economic growth is slowing" [2].