Walmart’s newly appointed CEO John Furner is taking a measured stance on future growth projections, setting expectations below what Wall Street analysts had hoped for as he begins leading the retail giant.
Despite strong performance during the holiday shopping season, Furner’s team announced Thursday they anticipate annual sales growth between 3.5% and 4.5% for the upcoming year. This forecast falls short of analyst predictions, which had estimated roughly 5% growth.
The cautious projections come as Furner steps into his leadership role, having previously guided Walmart’s domestic operations through the pandemic. Market observers had anticipated this conservative approach as the new CEO establishes his strategy.
However, the company’s recent performance tells a positive story. Fourth-quarter revenue climbed 5.6% to reach $190.66 billion, slightly exceeding projections. Same-store sales in the United States jumped 4.6%, surpassing the 4.2% increase that analysts had expected.
“The pace of change in retail is accelerating… For our customers and members, the future is fast, convenient, and personalized,” Furner stated. The company simultaneously revealed plans for a substantial $30 billion share repurchase program.
Walmart’s digital commerce division particularly impressed investors, with online sales climbing 27% during the quarter. This marked the fifteenth consecutive quarter of double-digit e-commerce growth for the Arkansas-based retailer.
The company has successfully attracted higher-income shoppers, with households earning over $100,000 annually driving much of the market share gains over the past two years. These more affluent customers have embraced Walmart’s expanded delivery options, including same-day service and curbside pickup.
Store-fulfilled delivery services experienced explosive growth, increasing more than 50% during the quarter. Foot traffic data from Placer.ai showed customer visits to Walmart’s 4,600 locations rose every month of the reporting period.
While other retailers have struggled with consumers avoiding higher-priced merchandise, Walmart has maintained its appeal through competitive pricing and grocery dominance. The influx of wealthier shoppers has boosted sales of profitable items including apparel, kitchen goods, furniture, and toys.
Furner takes over as Walmart becomes the first retailer to surpass $1 trillion in market capitalization, with shares gaining 22% over the past year. David Guggina now leads the U.S. division, which generates nearly 70% of the company’s total revenue.
The retailer’s resilience stands out amid broader economic pressures, including tariff impacts on imported goods from China and other countries. While overall U.S. retail sales showed weakness in December, Walmart continued attracting value-seeking customers across all income levels.
Looking ahead, the company projects adjusted earnings per share between $2.75 and $2.85, which also trails analyst expectations of $2.96. Walmart shares dropped 2.6% in pre-market trading following the announcement.
