Walmart(US:WMT) Forbes·2025-02-20 15:06Core Viewpoint - Walmart's stock experienced a significant decline due to a weaker-than-expected forecast for 2025, which raised concerns among investors about the impact of tariffs on consumer prices [1][3]. Financial Performance - Walmart reported Q4 sales of $180.6 billion and earnings per share of $0.66, surpassing analyst expectations [2]. - For the fiscal year ending January 2026, Walmart anticipates sales growth of 3% to 4%, which is below the 4.1% growth projected by analysts. The expected earnings per share range is $2.50 to $2.60, lower than the $2.77 forecasted by analysts [3]. Market Impact - The company's stock fell over 6.8%, marking its steepest daily loss since November 2023 and the seventh-worst day in the last decade [2]. - Walmart lost approximately $51 billion in market capitalization, which is comparable to the total market value of its rival Target at $59 billion [5]. Wealth Impact on Founders' Heirs - The heirs of Walmart founders experienced substantial losses, with each of the three living children of Sam Walton losing nearly $6 billion, collectively impacting their fortunes by billions [4]. Tariff Concerns - Walmart's CEO indicated that the company aims to save consumers money despite the potential impact of tariffs, which have not been factored into the full-year forecasts. The CFO noted that tariffs could lead to higher prices and forecasted a 2% impact on profits from foreign currency exchange rates [6]. Overall Company Status - Despite the recent decline, Walmart's shares are still up 8% year-to-date and have increased by 66% over the past year. The company achieved record revenues of $681 billion and a net profit of $20.1 billion in the fiscal year ending last month [8].