10:48 AM EDT, 05/06/2025 (MT Newswires) -- Walmart ( WMT ) is positioned well to navigate through tariffs and offset the potential impact of duties compared with its rivals, as the retail giant reiterated its fiscal 2026 sales growth outlook last month, RBC Capital Markets said in a Tuesday client note.

During an investor meeting last month, Walmart ( WMT ) maintained its full-year sales growth guidance of 3% to 4% at constant currency terms. The company also reaffirmed its forecast for adjusted operating income to rise by 3.5% to 5.5% in constant currency for the ongoing fiscal year. The affirmation came after US President Donald Trump announced his sweeping new reciprocal tariffs at the beginning of the month.

RBC expects the company's announcement to give investors confidence that Walmart ( WMT ) is "better positioned than most" to deal with tariff-related headwinds, with about one third of its products sourced internationally.

However, the brokerage does not anticipate Walmart's ( WMT ) first quarter to be a "major catalyst."

Walmart ( WMT ) is scheduled to report its first-quarter results on May 15.

One of the key takeaways from last month's investor meeting was the company's intention to "at least maintain" its current price gaps and leave the door open to widening, according to RBC. The brokerage expects this to be possible through high-margin alternative businesses, including advertising and data.

Walmart ( WMT ) said in April it continues to project first-quarter sales to increase by 3% to 4%. RBC maintained its estimate for the company's US comparable sales to rise by 4% in the quarter, reflecting a balanced contribution from transactions and ticket. Consumer uncertainties driven by tariffs likely caused a pullback in discretionary spending, resulting in general merchandise comparable sales to decline by 1.5%, according to the brokerage.

RBC expects Walmart ( WMT ) to issue a sales growth outlook of 3.5% to 4.5% for its fiscal second quarter. It has an outperform rating on Walmart's ( WMT ) stock with a price target of $102.

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