Walmart has reported a record full-year revenue of $681 billion, marking a 5.1% increase from the previous year, alongside an 8.6% rise in operating income. Despite these strong results, the company is bracing for a year of slower growth, forecasting only a 3-4% rise in net sales and 3.5-5.5% in adjusted operating profit, according to the Financial Times.

The market reaction to Walmart's report was swift, with its shares plunging by 6.5%, the steepest decline since November 2023, as noted by the Financial Times. This has sparked concerns across the stock market, triggering a downturn in the Dow Jones Industrial Average. The company's cautious guidance stirred worries about consumer demand and the potential impact of tariffs on retail, as reported by the Economic Times.

On the consumer front, Walmart's strategy to mitigate the effects of tariffs includes maintaining low prices and exploring new sourcing options. These efforts aim to shield consumers from potential price hikes, as reported by the Associated Press. The retail giant's approach underscores the delicate balance it must maintain to navigate the intertwined concerns of Wall Street performance and Main Street affordability.