From Yahoo Finance: 2025-04-09 17:01:00

Walmart faces profit concerns due to Trump’s tariffs, impacting its guidance. President Trump pauses reciprocal tariffs for 90 days, except for China, which now faces a 125% tariff. Walmart remains strong with over 4,500 US stores while Target struggles with fewer levers to combat tariffs. US stocks rallied post-Trump’s announcement.

Target’s same-store sales lag behind Walmart’s. A major boycott affected Target’s foot traffic following diversity initiatives walkback. Walmart’s financial capacity to withstand tariffs is attributed to its scale. Conventional grocers like Kroger and Albertson’s also face challenges. Walmart’s market share is increasing at the expense of Target.

Walmart maintains price gap against competitors amidst tariffs. Alternative revenue streams like Walmart Connect and e-commerce offerings buffer against tariffs. Walmart’s e-commerce business is expected to be profitable. Target’s digital sales growth lags behind Walmart. Walmart’s ad and e-commerce offerings outperform Target’s.

Customers turn to Walmart for value in uncertain times. Walmart Connect revenue rises as Target’s Roundel digital ad business lags. Walmart’s high-margin revenue streams boost profit margins. CFO expects benefits and margins to continue in future years. Walmart stands well-positioned in the face of tariffs.

Read more: Walmart’s investor day highlights uncertainty in retail as Trump announces a pause in tariffs