Walmart Inc. (WMT.US) 2027 fiscal year guidance "douses cold water": Revenue and profit fall short of expectations, trade and labor pressures are main reasons.

Amid increasing uncertainty in global trade policies and fluctuations in the labor market, global retail giant Walmart Inc. (WMT.US) has issued a more conservative full-year performance guidance, with revenue and profit forecasts below market expectations. The latest financial report from Walmart Inc. shows that adjusted earnings per share for this fiscal year are expected to be between $2.75 and $2.85, lower than the average analyst expectation of $2.97. The company expects a consolidated net sales growth rate of 3.5% to 4.5% for the fiscal year 2027, also lower than the market's approximately 5% growth expectation. This cautious outlook led to a 2% decline in Walmart Inc. stock price in pre-market trading on Thursday. Walmart Inc. Chief Financial Officer, John David Rainey, stated that given the current uncertain macro environment, including slowing hiring and trade tensions, taking a moderately conservative outlook is a prudent move. Due to its massive scale and extensive coverage, Walmart Inc. is often seen as a barometer of the overall consumer economy. The wide-ranging and intermittent tariff policies of U.S. President Trump have disrupted operations in many industries, and Walmart Inc. and other retailers are cautious about rising costs and price increases. With its vast supply chain and scale, Walmart Inc. has largely been successful in mitigating the impact of tariffs, but also warns that the pressure is increasing. In the coming weeks, competitors such as Target Corporation (TGT.US) and Costco (COST.US) will release their quarterly reports. Currently, most consumer goods companies are cautious, with food manufacturers reporting weakening demand and increased price sensitivity among consumers. However, it is important to note that Walmart Inc. typically provides conservative guidance at the beginning of the year and adjusts it upwards in subsequent quarters. Rainey pointed out that in recent years, the company's actual performance has exceeded initial expectations, and added that looking ahead, Walmart Inc. is monitoring how the upcoming tax refund season will affect consumer demand. While other consumer goods companies are struggling due to consumer reluctance to buy high-priced items, Walmart Inc. has seen strong sales growth in recent quarters. Over the past year, Walmart Inc. stock has performed well, with a cumulative increase of 22%, making it the first retailer to surpass a trillion-dollar market value. The latest quarter's performance also confirms this trend. U.S. same-store sales grew by 4.6% in the fourth quarter, higher than the market's expectation of 4.2%. In comparison, excluding automobiles, gasoline, building materials, and food services, U.S. retail sales in December fell by 0.1% month-on-month, compared to an increase of 0.2% in November, indicating that rising prices due to import tariffs are causing a slight contraction in consumer spending. E-commerce has become an important growth engine for Walmart Inc., with online sales in the U.S. growing by 27%, achieving double-digit growth for the 15th consecutive quarter, with sales through in-store rapid delivery increasing by over 50%. Quarterly total revenue increased by 5.6% year-on-year, reaching $190.66 billion, slightly higher than market expectations. The report shows that households with annual incomes exceeding $100,000 continue to be the main drivers of market share growth for Walmart Inc. Benefiting from convenient delivery services and a growing variety of online products, Walmart Inc. has successfully attracted more high-income consumers, driving sales of high-margin products such as clothing and appliances. Additionally, groceries still account for about 60% of its U.S. sales, providing a stable consumer demand base. This financial report comes at a key juncture for Walmart Inc. leadership change. John Furner officially took over as CEO on February 1st, having successfully led Walmart Inc.'s U.S. business through the pandemic period and actively promoted the use of artificial intelligence (AI). The market has generally been optimistic about his appointment, but he also faces the challenging task of sustaining growth after the company reached a trillion-dollar market value. Furner stated that the transformation of the retail industry is accelerating, and the company will focus on providing fast, convenient, and personalized services to customers. The company also announced a new $30 billion stock buyback plan.