Walmart (NYSE:WMT) has unveiled an outlook for sales in its 2026 fiscal year that were below forecasts, in a potential sign that the big-box retailer may feel the impact of fading optimism among inflation-hit consumers.
Analysts have widely viewed the ubiquitous chain that offers everything from retail goods to groceries as a possible bellwether for the state of the U.S. consumer during the early months of 2025.
Recent economic data has shown a decline in monthly retail sales, while a consumer sentiment survey for February unexpectedly declined. The figures, along with a hotter-than-expected inflation reading for January, suggested that shoppers may be wary of the effect U.S. President Donald Trump's policy moves -- particularly plans to roll out sweeping tariffs -- could be having on their purchasing power.
Arkansas-based Walmart said it expects annual consolidated net sales to increase in the range of 3% to 4%, versus analyst projections of a 4% uptick, according to LSEG data cited by Reuters.
Still, Walmart appeared to weather the hit to retail sales from inclement weather and natural disasters last month. Total U.S. comparable sales expanded by 4.9% in the January quarter, compared to expectations for a jump of 4.15%.
Shares in Walmart sank by more than 6% in premarket U.S. trading on Thursday following the report.
