By Katherine Hamilton

Walmart is still confident in its business and strategy but ready to pivot should volatility continue, Chief Executive Doug McMillon said at an Investor Day event.

"While in the short term, we're not immune, we're positioned to play offense," McMillon said. "Nothing about the current environment impacts our confidence in our business or our strategy."

Chief Financial Officer John David Rainey said during the conference Wednesday morning that economic uncertainty and declining consumer confidence has led to volatility, sometimes on a daily basis. That's put pressure on the operating income expectations and made it more difficult to predict, he said.

"For the current quarter, the uncertainty and decline in consumer sentiment has led to a little more sales volatility week to week and, frankly, day to day," Rainey said.

The retailer expects sales growth to stay in line with the 3% to 4% guidance it has previously shared. It reports first-quarter results May 15.

The range of outcomes for first-quarter operating income growth has widened due to a less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented, Walmart said.

Walmart is still evaluating the tariff environment and figuring out what it means for the retailer, Rainey said. The company sources about two-thirds of its goods sold in the U.S. domestically, but China and Mexico are its most significant importers, he said.

Rainey also added that Walmart's e-commerce segment is profitable this quarter for the first time, and is expected to be annually profitable starting this year. E-commerce revenue contributed to half of sales growth over the past five years, he said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

April 09, 2025 10:19 ET (14:19 GMT)

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