Walmart is ditching its earnings guidance as tariffs fuel uncertainty

Uncertainty surrounding President Donald Trump’s tariffs caused Walmart (WMT) to scrap its first-quarter operating income guidance Wednesday.

The retailer wrote in a release that it needed to stay nimble in the face of the new tariffs.

“The range of outcomes for Q1 operating income growth has widened due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented,” the company said.

Walmart had previously projected a first-quarter increase of 0.5% to 2.0% in adjusted operating income, according to CNBC. It did not provide a new range.

Tariffs on several Asian countries from which Walmart imports goods went into effect Wednesday. Imports from China are expected to be tariffed at a 104% rate, while goods from Vietnam will have a 46% rate. Those counties have major manufacturing hubs, especially for electronics.

Adding to the uncertainty is the fact that it’s unclear how long those tariffs will be in effect. Trump has shown a willingness to use them as a negotiating tool. Treasury Secretary Scott Bessent said 70 countries have reached out to the U.S. to discuss the tariffs.

“History tells us that when we lean into these periods of uncertainty, Walmart emerges on the other side with greater share and a stronger business,” executive vice president and chief financial officer John David Rainey said in the release.

Despite the uncertainty around Q1, the Bentonville, Arkansas-based retailer maintained its full-year guidance. Walmart said in February that it expects full-year net sales to increase 3% to 4% and adjusted operating income to climb by between 3.5% and 5.5%.

Walmart stock was off to a hot start Wednesday morning, climbing 4 points (5.0%) in the first hour of trading. Shares are down 4 points (4.6%) this year.