Walmart anticipates a slowdown in sales and profit growth for 2025 due to rising inflation and the impact of tariffs. The forecast caused its stock to drop by up to 8% in pre-market trading. Sales are expected to grow by up to 4%, with profit growth up to 5.5%, falling short of investor expectations. As the largest U.S. retailer, Walmart’s projected slowdown signals a challenging year ahead for the retail industry. David Silverman of Fitch Ratings noted continued retail volatility in 2025 due to declining consumer sentiment, especially among lower-income consumers, and tariff impacts. Despite these challenges, Walmart remains resilient and can leverage its size to negotiate supplier prices better than smaller companies. However, CFO John David Rainey acknowledged uncertainties related to consumer behavior and global economic conditions. Consumer prices rose 0.5% last month, the fastest pace in over a year, driven by energy and food costs. Walmart expects normal inflation of 1% to 2% this year despite rising egg prices due to avian flu. — news from CNN
