MW Walmart stock rallies on plans to grow its market share during tariff drama

By Steve Gelsi

Retailer's stock adds to gains as it airs plan to increase its percentage of total retail business in the U.S., as it has done in the past during difficult times

Walmart Inc.'s stock rallied Wednesday after it said it expects to emerge from the economic turmoil over tariffs with a greater market share, although the retailing giant admitted it's "not immune" from the prospect of higher prices.

Walmart's stock $(WMT)$ rose 8.6% as one of the top gainers in the Dow Jones Industrial Average DJIA. The stock's gains widened after President Donald Trump announced a 90-day pause on many global tariffs.

The way Walmart is dealing with the current business operating environment is changing given all the uncertainties, Chief Executive Doug McMillon said at the company's investor day, but he added that the retailer is still in a position to "play offense."

The company said the impact of tariffs may cause it to "invest in price," which will "widen the range of outcomes" for its first-quarter operating income growth.

While the company has deep experience with tariffs, the current situation "remains fluid" after only a week into the changes imposed by President Donald Trump, he said.

In the current environment, Walmart is engaging with its suppliers and focusing on inventory management, McMillon added.

"We're taking it one day at a time," he said.

Financial Chief John David Rainey said the retailer sees an opportunity to increase its percentage of the total U.S. retail business - as it did after the COVID-19 pandemic five years ago and the global financial crisis in 2008-09.

"When we lean into these periods of economic uncertainty, Walmart emerges on the other side with greater share and a stronger business," Rainey said. "We don't expect this current period to be any different."

The update came during Walmart's first investor day in two years, ahead of its first-quarter results due next month. The stock's rally comes after shares had dropped around 9% in the wake of President Trump's April 2 tariff announcement.

About a third of Walmart's merchandise comes from China, Mexico and other countries, while the rest is assembled or made in the U.S., Rainey said.

D.A. Davidson analyst Michael Baker said Walmart faces "pressure points" on its operating income as consumers focus more on "basic needs" in an uncertain environment.

"The desire to stay flexible to invest in pricing as tariffs are implemented - this seems like a market share gain strategy, which could help sales, but likely negatively impact margins," Baker said.

Overall, Walmart continues to expect first-quarter sales growth to match its outlook of 3% to 4%, it said in a statement released ahead of its investor day.

The retail giant's annual sales and operating-income growth guidance remains unchanged.

"The range of outcomes for [first-quarter] 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," Walmart said.

The company was expecting first-quarter operating-income growth of 0.5% to 2%, based on guidance offered with its fourth-quarter earnings released in February.

Walmart is scheduled to report its first-quarter results on May 15. The company is expected to report earnings of 59 cents a share, down from 60 cents a share in the year-ago quarter, according to FactSet data.

Walmart's stock is down 5.4% so far in 2025, while the S&P 500 SPX has fallen by 14.6%.

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-Steve Gelsi

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April 09, 2025 13:58 ET (17:58 GMT)

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