Walmart Forecast Disappoints as Retailer Flags Economic Uncertainty

Core Viewpoint - Walmart's full-year earnings outlook for fiscal 2027 is below Wall Street expectations, citing "substantial uncertainty" from various economic factors [1] Group 1: Earnings Outlook - Walmart guided for fiscal 2027 adjusted earnings per share between $2.75 and $2.85, below Bloomberg consensus estimates of $2.97 [1] - For the first quarter, Walmart projected adjusted earnings of $0.63 to $0.65 per share, compared to Wall Street expectations of $0.69 [1] Group 2: Fourth Quarter Performance - In the fourth quarter, Walmart reported adjusted earnings of $0.74 per share on revenue of $190.66 billion, slightly exceeding analyst forecasts of $0.73 per share and $190.58 billion in revenue [2] - The performance indicates that U.S. economic growth is primarily driven by higher-income households and corporations, while lower-income consumers face challenges from elevated living costs and a softer labor market [2] Group 3: Sales and E-commerce Growth - Comparable sales at Walmart's U.S. stores increased by 4.6%, excluding fuel, during the 13 weeks ended January 30, supported by spending from higher-income households [3] - E-commerce accounted for a record 23% of total sales, driven by demand for faster delivery services [4] - Walmart has partnered with OpenAI and Google to enhance operational efficiencies and improve the digital shopping experience [4] Group 4: Membership Fee Income - Membership fee income declined by 11.2%, attributed to a comparison against prior-year proceeds from an insurance recovery [4]