Walmart shoppers prioritize low prices over product origins, executives say. As the retail giant prepares to report earnings, analysts expect record annual sales of $680.47 billion, up 5% for the year ending January 31, 2025. However, investors worry about the impact of new tariffs under President Trump on imports from China, India, Mexico, and Canada.
Walmart, a key indicator of U.S. consumer spending, generates 40% of its sales from discretionary items sourced primarily from tariff-affected regions. Analysts predict a slowdown in revenue growth to 4% this year, reflecting tariff concerns.
The company’s private-label Great Value brand, which relies heavily on Chinese manufacturing, will be closely watched for margin pressure. Walmart has warned that changes in trade policies could harm its financial performance.
Despite tariff risks, investors believe Walmart is well-positioned. The retailer has maintained margins through cost-cutting measures like automation and job relocation. It also pledged a $350 billion investment to source more U.S.-made products.
Analysts expect Walmart to manage tariff challenges better than competitors like Target, whose sales are projected to decline by 1% in 2024 before rising 2.5% in 2025. UBS analyst Michael Lasser noted that Walmart’s strong buying power and low-price strategy could help offset tariff effects, keeping shoppers loyal.
With a 4% projected sales growth for 2025, Walmart’s ability to balance rising costs with affordability remains a key focus for investors.
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