Why Walmart Stock Is Sinking Today

Shares of Walmart (WMT -5.86%) are falling on Thursday. The company's stock fell 6.3% as of noon ET. This comes as the S&P 500 (^GSPC -0.50%) lost 0.8% and the Nasdaq Composite (^IXIC -0.53%) lost 0.8%.

The retail giant reported earnings before the market opened on Thursday. While the company delivered a strong quarter, weak guidance concerned investors.

The holiday season was solid

Walmart posted Q4 earnings per share (EPS) of $0.66 on sales of $180.55 billion. The numbers came in slightly ahead of analyst estimates for EPS, but just shy of sales estimates.

The quarter was marked by strong global e-commerce growth, up 16% year over year, and solid overall sales growth of 5.3%.

Doug McMillon, Walmart's CEO, said of the performance, "We're gaining market share, our top line is healthy, and we're in great shape with inventory." He added that the company will focus on "growth, improving operating margins, and strengthening ROI" in the upcoming year. The company will face challenges doing so, as the Trump administration continues to levy tariffs on global trading partners.

A tough year ahead

Much of what Walmart sells is grown or made in the U.S. However, CFO John David Rainey told CNBC that the company was "not going to be completely immune" from tariffs, especially those placed on Mexico and Canada.

This uncertainty and growing concern over inflation led the retailer to forecast sales growth of just 3% to 4% in the next year, below the expected 4% from Wall Street. The weak guidance sent shares lower.