A Walmart Supercenter in Burbank, California, November 21, 2024.
Allen J. Schaben | Los Angeles Times | Getty images
Dallas, Texas – Walmart Wednesday, withdrew its prospects for operating income in the first quarter, citing uncertainty as to the potential impact of scanning prices on China, Vietnam and other key sources of goods around the world.
In a press release, the discounter said he wanted to “maintain flexibility to invest in the price as the prices are implemented”. It did not provide a new range for operating profit in the first quarter. It had planned a 0.5% increase to 2.0% of the operating profit adjusted in the first tax quarter.
Walmart maintained its prospects for the first quarter of growth of 3% to 4% in the first quarter.
The retailer did the same day as the acute rates of President Donald Trump took effect on significant manufacturing centers that produce some of the goods it carries. Rights began at 12:01 p.m., including an expected 104% rate on imports from China and a 46% levy on imports from Vietnam.
However, the long -term fate of prices remains uncertain, because Trump sends mixed signals on his desire to conclude agreements with certain countries to reduce functions. The Treasury Secretary, Scott Bessent, said that some 70 countries had contacted the White House to talk about the samples.
Although it indicates that the uncertainty concerning the prices has made it difficult to forecast the operating profit in the first quarter, Walmart remained on its full -year guidelines. The back said in February that it expects annual net sales to increase from 3% to 4% and that adjusted operating profit increases between 3.5% and 5.5% in constant currencies. This includes a contrary wind of 1.5 percentage point of the acquisition of the intelligent television company Vizio and the creation of a year of jump in 2024.
The company said in February that it provides for a full -year adjusted benefit of $ 2.50 to $ 2.60 per share, which includes a contrary wind of 5 cents per share.
Walmart’s announcement was before a presentation of investors on Wednesday by the main managers of the retailer on Wednesday. He is part of a two -day event in Dallas.
In its opening remarks on Tuesday, CEO Doug McMillon recognized the strange moment when the retail giant found itself.
“Obviously, our environment has changed, which makes it really exciting for us,” he said, causing laughing at the investor room, bankers and journalists.
“We have learned to manage through turbulent periods,” he said. “Especially over the past two years, it has been one thing after another.”
“It is clearly a fluid environment,” he said. “And even if we do not know everything that will happen, of course, we know what our priorities are, and we know what our goal is, and we will focus on price maintenance as low as possible. We will focus on the management of our inventory and our expenses.”
This story is developing. Please check the updates.
