Bentonville, Arkansas – Walmart is set to release its earnings report before the market opens on Tuesday, with analysts expecting the retail giant to reveal earnings per share of 53 cents and revenues of $167.72 billion for the fiscal third quarter. As the holiday season approaches and inflation shows signs of easing, investors are closely watching Walmart’s performance.

With a myriad of factors at play this holiday season, including moderated inflation and the uncertainty surrounding the U.S. presidential race, retailers like Walmart are navigating through a complex landscape. While fears of a prolonged election process have subsided, concerns over President-elect Donald Trump’s proposed tariffs on imports have reignited worries about price hikes.

Despite these challenges, holiday spending is projected to increase modestly this year. The National Retail Federation forecasts a 2.5% to 3.5% rise in holiday spending compared to the previous year, with sales totaling between $979.5 billion and $989 billion. Walmart, known for its robust grocery business and expanding online sales, raised its full-year forecast in August but fell short of investor expectations for the third quarter.

The retail giant anticipates a sales increase of 3.75% to 4.75% for the full year, with adjusted earnings expected to range between $2.35 and $2.43 per share. However, the projected earnings of 51 to 52 cents per share for the third quarter fell below initial estimates. Walmart’s emphasis on its grocery division and e-commerce operations has proven beneficial, but external factors like tariffs and warm weather pose potential challenges.

As investors eagerly await Walmart’s earnings report, the outcome will provide crucial insights into consumer sentiment and the retail industry’s outlook for the upcoming holiday shopping season. Stay tuned for updates on Walmart’s performance and the implications for the broader market.