The retail giant said tariffs were opportunity to gain market share while emphasizing its business strategy. Its shares closed up nearly 10 percent.
Walmart’s shares soared nearly 10 percent during the April 9 trading session after the company maintained its sales outlook and pledged to keep prices low for customers amid economic uncertainty.
In its Investment Community Meeting on April 9, the Bentonville, Arkansas-based retail giant reaffirmed its previous guidance of 3 to 4 percent sales growth for the first quarter of 2025 while keeping annual sales and operating income growth targets unchanged.
Doug McMillon, president and CEO of Walmart Inc., expressed confidence in the company’s strategy for driving sales growth and enhancing shareholder value.
“The combination of a purpose-driven, people-centric culture with world-class technology is the winning formula,” he said.
He also emphasized Walmart’s commitment to “invest in low prices.”
“Our customers want four things: everyday low prices, a broad assortment, a convenient and enjoyable shopping experience, and to do business with a company they trust. We’re changing to serve them even better,” he said.
John David Rainey, executive vice president and chief financial officer of Walmart, speaking about the company’s expectations for the first quarter, said it’s still too early to evaluate how the Trump administration’s newly announced tariffs would affect the company.
“We are one week into this new tariff environment, and we’re still working through what it means to us,” he said.
Meanwhile, the executive reminded investors that more than two-thirds of what the company sells in the United States “is made, grown, or assembled” domestically.
Rainey acknowledged that uncertainty from tariffs and a decline in consumer sentiment had led to sales volatility in the first quarter, adding that general merchandise sales were softer earlier in the quarter but have since improved.
However, he also viewed the tariffs as an opportunity for the company to gain market share.
“We see opportunities to accelerate share gains and are maintaining the flexibility to invest in price as tariffs are applied to incoming goods,” Rainey said.
In conclusion, he said the company is focused on the long term.
“What history tells us is that when we lean into these periods of economic uncertainty, Walmart emerges on the other side with a greater share and a stronger business, and we don’t expect this current to be any different.”
