Dow Dips Over 1%; Walmart Shares Plunge Following Soft Guidance

The Dow Jones Industrial Average (DJIA) fell over 1% on Thursday, with Walmart shares plunging following the company's soft guidance for the upcoming fiscal year. The DJIA dropped 270.74 points, or 0.9%, to 28,335.57, while the S&P 500 index declined 0.5%, to 3465.39, and the Nasdaq Composite dropped 1.1% to 11,548.28. Walmart's stock tumbled 8% in premarket trading after the retail giant provided a 2025 sales and profit forecast that was lower than analyst expectations.

Walmart's outlook for 2025 is as much as 27 cents below analyst projections for per-share earnings and for the quarter, with expectations as much as 7 cents below Wall Street projections. Its sales outlook is also disappointing, potentially reflecting rising challenges ahead as consumers pull back on spending and President Donald Trump's tariffs on China and other countries threaten the low-price model that is the core of Walmart's success.

Walmart executives acknowledged that the company is facing an uncertain time and emphasized the need to be cautious in their outlook. "We have to acknowledge that we are in an uncertain time, and we don't want to get out over our skis here," said Walmart chief financial officer John David Rainey on a conference call with investors on Feb. 20. Walmart expects first quarter earnings per share of between 57 cents and 58 cents, well below the 64 cents Wall Street was expecting, and for the year, the company expects earnings per share in the range of $2.50 to $2.60. That's also off the $2.77 that analysts are predicting, according to FactSet.

Walmart's cautious outlook comes as the company faces new challenges in an uncertain economic landscape. The outlook from the nation's largest retailer for 2025 is as much as 27 cents below analyst projections for per-share earnings and for the quarter, with expectations as much as 7 cents below Wall Street projections. Its sales outlook is also disappointing, potentially reflecting rising challenges ahead as consumers pull back on spending and President Donald Trump's tariffs on China and other countries threaten the low-price model that is the core of Walmart's success.