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

sales for the fiscal year ending January 2026 below Wall

Street's current estimates, signaling the world's largest

retailer expects inflation-weary consumers to pull back after

several quarters of solid growth.

Walmart ( WMT ) forecast annual consolidated net 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

assumes a 100 basis points impact from lapping leap year in

2024.

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

the crucial holiday quarter, Walmart's ( WMT ) results reveal how

Americans have responded to President Donald J. 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.

The company, like other retailers such Target ( TGT ) and

Best Buy ( BBY ), has seen persistent softness in its

high-margin general merchandise business as consumers struggle

to pay elevated grocery prices.

During the reported quarter, the company gained shares in

general merchandise categories, including consumer electronics.

The retail giant's dominance in groceries and its ability to

secure the lowest prices from suppliers have made it a popular

choice for value-conscious shoppers across all income groups.

Over the past year, the Bentonville-based chain has noted

that its market share gains were primarily driven by households

earning more than $100,000.

These households have been significant contributors to

online sales, drawn to Walmart's ( WMT ) same-day and two-day deliveries

and curbside pickup services from its 4,600 U.S. stores.

Walmart ( WMT ) 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.