Walmart Warns of a Slower 2025; Experts Say It’s A Bad Sign For The U.S. Economy

Shoppers flocked to Walmart for groceries and clothing last year, but 2025 is shaping up to be a tougher year for the retail giant as inflation rises and Trump’s tariffs take effect.

While Walmart expects sales and profits to grow, such projections fell short of investor expectations. I Photo: Walmart

Walmart announced that its sales and profit growth will slow this year, sending its stock tumbling by as much as 8% in pre-market trading. Nathaniel Meyersohn reported for CNN.

Walmart expects sales to grow by up to 4% this year and profits to increase by up to 5.5%, but these projections fell short of investor expectations. As the largest retailer in the U.S., Walmart is a key indicator of consumer spending trends.

Its slower growth forecast suggests a challenging year ahead for the retail industry.

David Silverman, a senior director at Fitch Ratings, warned that “retail choppiness will continue in 2025” due to a recent decline in consumer sentiment, particularly among lower-income shoppers, and the impact of tariffs.

Despite these concerns, Walmart’s business remains strong, and consumers are proving resilient, the company said. However, it acknowledged that it must navigate tariffs and other challenges.

Walmart’s outlook assumes a “relatively stable macroeconomic environment” but recognizes the uncertainties tied to consumer behavior, global economic trends, and geopolitical conditions, said John David Rainey, Walmart’s chief financial officer, during a call with analysts.

Walmart is better positioned than smaller retailers to handle the impact of tariffs because of its size and bargaining power. Economists warn that smaller companies, lacking this leverage, may have to pass price increases onto consumers.