Walmart, Delta Air Lines warn of sales volatility, slower growth

Walmart has pulled its guidance for operating income in the first quarter, while Delta Air Lines cut its growth plans amid the escalation of President Donald Trump’s trade war.

As the largest private employer in the U.S. and a dominant force in retail, Walmart, alongside Delta, the nation’s most profitable airline, offers key insight into consumer confidence.

Walmart on Wednesday announced that the “range of outcomes for Q1 operating income growth has widened due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented.”  

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The company did not offer a new range for operating income growth for the first quarter. 

During an investor meeting on Wednesday, Walmart CFO John David Rainey said the company is still figuring out the impact of the current tariff situation but that the “uncertainty and decline in consumer sentiment” have caused “more sales volatility” from week to week, and even day to day. 

Despite this, the company still expects its first-quarter sales to fall within its growth forecast of 3% to 4%. Nearly two-thirds of Walmart’s U.S. spending goes toward products made, assembled or grown in the U.S., but the remaining third comes from around the world, with China and Mexico being the largest contributors.

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Meanwhile, Delta Air Lines CEO Ed Bastian said during its earnings report on Wednesday that “with broad economic uncertainty around global trade, growth has largely stalled.”

Given the slower-growth environment, Bastian said the major carrier is protecting margins and cash flow by focusing on things it can control, such as reducing planned capacity growth in the second half of the year while actively managing costs and capital expenditures.

The company planned to expand capacity by about 3% to 4% in the second half of 2025 but now anticipates growth to be flat over last year. 

Bastian projected that June quarter profitability to be around $1.5 to $2 billion. However, “given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook,” Bastian said. 

Still, the chief executive said the company “remains well positioned to deliver solid profitability and free cash flow for the year.”