Feb 20 (Reuters) - Walmart ( WMT ) on Thursday forecast

sales for the fiscal year ending January 2026 largely below Wall

Street estimates, suggesting the world's largest retailer

expects inflation-weary consumers to pull back after several

quarters of solid growth.

Shares of the retailer were down 7% in trading before the

bell. The stock had risen about 72% last year and hit a fresh

record high of $105 last week.

Some analysts noted that Walmart ( WMT ) typically issues a

conservative forecast early in its fiscal year.

The Bentonville-based retailer forecast annual sales to rise

in the range of 3% to 4%, compared with analysts' expectations

of 4% growth, according to data compiled by LSEG. The outlook

includes a 100 basis point impact from an additional day in the

leap year of 2024, and a boost of 20 basis points from the

acquisition of smart-television manufacturer Vizio, the company

said in a statement.

As one of the first major U.S. retailers to shed light on

the crucial holiday quarter, Walmart's ( WMT ) forecast hints at how the

retailer expects to fare under President Donald Trump's

additional tariffs on goods made in China, and the threat of 25%

tariffs on products made in Mexico and Canada.

In January, the month Trump took office, U.S. retail sales

experienced their largest decline in two years, hampered by

frigid temperatures, wildfires, and motor vehicle shortages.

However, Walmart ( WMT ) appeared to remain unscathed, reporting

total U.S. comparable sales growth of 4.9% in the fourth

quarter, which includes November, December, and January. That

surpassed analysts' estimates of a 4.15% increase, according to

data compiled by LSEG.

"We have momentum driven by our low prices, a growing

assortment, and an eCommerce business driven by faster delivery

times," said Walmart's ( WMT ) CEO Doug McMillon.

Higher income customers or households making six-figures

were the top drivers of market share in the latest quarter,

Walmart ( WMT ) said, with seasonal merchandise, auto and home products

being top draws.

Transactions, excluding fuel, rose 2.8% at its 4,600 U.S.

stores with average checks at the till rising 1.8%.

U.S. e-commerce sales rose 20% as shoppers also opted

for more store-fulfilled pickup & delivery options, the retailer

said, adding that one-third of shoppers elected to have

deliveries in three hours or less.

Walmart ( WMT ) on Thursday also forecast adjusted earnings per

share for fiscal year 2026 in the range of $2.50 to $2.60,

compared with analysts' expectations of $2.76 in profit,

according to data compiled by LSEG.