Walmart Forecasts Lower Sales Growth, Reflecting Inflationary Pressures
Walmart has forecasted sales growth below Wall Street estimates for the fiscal year ending January 2026, indicating concerns about consumers' reduced spending amid inflation. The retailer expects annual consolidated net sales to increase by 3-4%, compared to analysts' expectations of 4%.
Walmart's outlook factors in a 100 basis points impact from lapping leap year in 2024. The company highlights strong momentum driven by low prices, expanded assortment, and faster e-commerce delivery times.
However, Walmart faces challenges in its high-margin general merchandise business due to consumers' prioritization of grocery expenses. The company gained shares in consumer electronics during the reported quarter, but its dominance in groceries and supplier price advantages continue to attract value-conscious shoppers.
Walmart's market share gains have been primarily driven by households earning over $100,000, who are contributing significantly to online sales through same-day and two-day delivery options.
Walmart forecast adjusted earnings per share for fiscal year 2026 in the range of $2.50 to $2.60, below analysts' expectations of $2.76.