Walmart vows to keep prices low — despite income being ‘harder to predict' after Trump tariffs

Core Viewpoint - Walmart has maintained its full-year sales and income growth forecasts despite concerns over President Trump's tariffs, indicating confidence in its ability to manage through economic turbulence [1][4][10] Sales and Income Forecast - The company expects sales for the fiscal year ending January 2026 to rise between 3% and 4%, with annual adjusted operating income projected to increase between 3.5% and 5.5% [5] - Walmart has kept its first-quarter sales forecast intact, but the range of outcomes for first-quarter operating income growth has widened due to the impact of tariffs [6][8] Impact of Tariffs - As the largest US importer of containerized goods, Walmart is at risk from tariffs primarily affecting imports from Asian countries, including a 104% duty on Chinese goods [4][10] - Approximately 60% of Walmart's imports come from China, with Vietnam also being a significant supplier [10] Management Strategy - CEO Doug McMillon emphasized the company's focus on keeping prices low and managing inventory and expenses effectively [5][8] - The company has been negotiating with suppliers regarding price hikes to mitigate the effects of tariffs on incoming goods [6][11] Market Conditions - Sales performance has been variable, with general merchandise sales reported as soft early in the quarter, making operating income harder to predict [9]