09:05 AM EST, 02/20/2025 (MT Newswires) -- Walmart ( WMT ) issued a full-year earnings outlook below market estimates on Thursday amid uncertain consumer behavior and geopolitical conditions, while the retail giant recorded better-than-expected fiscal fourth-quarter results.

The company anticipates per-share adjusted earnings to be in a range of $2.50 to $2.60 for fiscal 2026, including a currency headwind of about $0.05, below the current consensus on FactSet for $2.77. Sales are pegged to grow between 3% and 4% on a constant currency basis, including a roughly 20-basis-point impact from a lapping leap year. In the previous fiscal year, adjusted EPS rose to $2.51 from $2.22, while revenue was up 5.6% in constant currency terms.

Walmart's ( WMT ) shares dropped 5.5% in premarket activity.

The company's outlook assumes a "relatively stable" macroeconomic environment but acknowledges uncertainties related to consumer spending behavior and geopolitical conditions, Chief Financial Officer John Rainey said during an earnings call, according to a FactSet transcript. "It's not to say that there aren't challenges ahead, but our strategy is the right one," according to Rainey.

For the quarter ended January, the company reported adjusted EPS of $0.66 versus $0.60 the year before, topping the Street's view for $0.65. Sales improved 4% year over year to $178.83 billion. Total revenue, which includes membership and other income, increased 4.1% to $180.55 billion, ahead of the average analyst estimate of $180.07 billion.

US comparable sales inclined 4.6% buoyed by transaction counts and unit volumes while e-commerce sales jumped 20%. Same-store sales in Sam's Club moved about 6.8% higher, excluding fuel. Revenue in the company's international segment slipped to $32.21 billion from $32.42 billion in the prior-year quarter, as currency rate fluctuations weighed on the result by $2 billion.

Gross margin rose by 53 basis points to 23.9% aided by strong inventory management and lower markdowns that allowed the company to maintain price gaps at competitive levels, according to an earnings presentation. Operating, selling, general and administrative expenses rose to $36.52 billion from $34.31 billion last year.

"We have momentum driven by our low prices, a growing assortment and an e-commerce business driven by faster delivery times," Chief Executive Doug McMillon said in a statement. "We're gaining market share, our top line is healthy, and we're in great shape with inventory."

For the ongoing three-month period, Walmart ( WMT ) expects adjusted EPS of $0.57 to $0.58 and sales to rise by 3% to 4% in constant currency. The Street is looking for non-GAAP EPS of $0.64 and sales of $167.05 billion.