Penny-pinching Walmart shoppers focus much more on getting the lowest prices than on whether products are made in the U.S., Canada, China or elsewhere, Walmart executives have said.

When Walmart discloses results on Thursday, the chain of more than 4,600 U.S. stores is likely to show that it rang up record annual sales, according to LSEG estimates.

Walmart revenue rose by roughly 5% to $680.47 billion for the year ending January 31, 2025, according to LSEG estimates ahead of the results.

But some Walmart investors worry its bargain-price-above-all approach leaves the retailer in a bind under President Donald Trump as he slaps new tariffs on goods made in China and threatens them on products made in India, Mexico and Canada.

Walmart is among the first big U.S. retailers to report results for the fourth quarter, including holiday season sales.

The retailer serves as a barometer for consumer spending due to its scale and commanding market share of the U.S. retail industry. Investors watch its earnings closely for hints about U.S. economic health.

Also the largest U.S. importer of containerized goods, Walmart generates 40% of its sales from discretionary merchandise like clothing, electronics and toys, items sourced primarily from China, India and other nations targeted by Trump’s new tariffs, opens new tab.

For the current year, Wall Street analysts expect Walmart’s revenue growth rate to slow to 4%, hinting at anxiety over tariffs.
A Walmart spokesperson declined to comment, saying the company was in its quiet period ahead of its earnings report.

Brian Mulberry, client portfolio manager at Zacks Investment Management, a Walmart investor, said he will look at Walmart’s Great Value in-house brand as a yardstick to measure the impact of tariffs. Mulberry noted that China is the source of over 70% of the household and generic non-food products that Great Value sells such as electronics, accessories, plastic food containers and sporting goods.

Walmart has maintained its profit margins by reducing reliance on China, increasing warehouse automation, and relocating white-collar jobs to lower-cost areas like Arkansas.

Walmart has also committed, opens new tab to invest $350 billion over 10 years to source products from suppliers that make, grow or assemble in the U.S., to help it save costs by shortening lead times and keeping shelves better stocked.
“I don’t want price increases to put pressure on sales growth, so a balanced approach is needed,” Hare said, explaining he would like Walmart to share tariff costs with suppliers and manufacturers.

Walmart’s current-year sales growth forecast of 4% growth exceeds that of rival Target.
, opens new t, which sources much of its inventory internationally, with China being its largest source, S&P analysts wrote in a note.
Total annual revenue for Target, which reports holiday quarter results on March 4, is estimated to decline about 1% in 2024 and rise by 2.5% in 2025, according to LSEG estimates.

UBS analyst Michael Lasser, who last week raised his price target on Walmart’s stock to $113 from $100, said that while Trump’s election boosted inflationary pressures with new tariffs and immigration policies, Walmart’s everyday low-price strategy would likely drive shoppers to spend more there.

“We believe Walmart would be one of the better positioned retailers to mitigate or manage through tariffs, given its price leadership, buying power, and global sourcing capabilities,” Lasser said.