Walmart, the largest U.S. retailer, has warned of slower sales and profit growth in 2025 due to rising inflation and the impact of Trump’s tariffs. The forecast caused Walmart’s stock to drop by up to 8% during pre-market trading. Sales are expected to grow by up to 4%, with profits increasing by up to 5.5%, falling short of investor expectations. This slowdown signals potential challenges for the broader retail industry in 2025. David Silverman of Fitch Ratings noted continued retail volatility amid declining consumer sentiment, particularly among lower-income consumers, and tariff impacts. Walmart remains strong but acknowledged uncertainties tied to consumer behavior and global economic conditions. While Walmart can manage tariffs better than smaller companies due to its scale, CFO John David Rainey stated it won’t be completely immune. Consumer prices rose 0.5% last month, the fastest pace in over a year, driven by energy and food costs, including soaring egg prices from avian flu. Walmart expects normal inflation of 1% to 2% this year despite these increases. — news from CNN
