Walmart sets record sales in terms of tariffs. Analyst-Walmart (NYSE:WMT) said, “One of the better-positioned retailers can mitigate or manage tariffs.”

As Walmart WMT Wall Street is expected to announce its annual results on February 20, with record sales expected. But the potential impact of the new tariffs on the retail giant’s business may attract attention.

what happened: Walmart is expected to disclose annual sales records for its more than 4,600 U.S. stores. According to Reuters, LSEG’s estimates showed that fiscal revenue increased by about 5% to $680.4 million as of January 31.

Despite encouraging sales forecasts, investors are concerned about the impact of retailers on the president’s new tariffs Donald Trump About goods produced in China, India, Mexico and Canada. Walmart is known for its low price attention and it comes from a large number of products from these countries. Wal-Mart is one of other U.S. companies that have been accumulating supplies before Trump’s tariffs were imposed, according to data released by U.S. Customs data on February 1.

Since 40% of its sales come from disposable goods such as clothing, electronics and toys, the impact of these tariffs may be important to Walmart. Analysts predict Walmart’s revenue growth will slow to 4% this year due to potential tariff-related concerns.

See: Researchers say

Why it matters: Brian Mulberryclient portfolio manager Zacks Investment ManagementHe said he would use Walmart’s in-house brand with huge value as a measure of tariff impact. He noted that over 70% of household and general non-food products sold under the brand come from China.

In its April 2024 annual filing, Walmart warned that significant changes in tax and trade policies, including tariffs, could negatively impact its business and financial performance. Also in November, Walmart’s CFO, John David Rainey Tell CNBC “We never want to raise prices.” However, he said that if the proposed tariffs by President-elect Donald Trump are in effect, it may have to be done with selected projects.

However, UBS Analyst Michael Lasser It is believed that consumers may flock to Walmart’s low-priced goods due to increased inflationary pressures. “We think Walmart will be one of the retailers that can be mitigated or managed through tariffs given its price leadership, purchasing power and global procurement capabilities,” Lasser said.

Walmart’s stock performed well, with the stock expecting record sales, which gradually formed nearly 15%, in part due to a $34 million acquisition of the Monroeville Mall in Pittsburgh on February 4. Despite the increase in investment. In the fourth quarter, many funding positions, overly reliable momentum indicators suggest a possible retreat.

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Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.